Another Look at a Drink Ingredient, Brominated Vegetable Oil


James Edward Bates for The New York Times


Sarah Kavanagh, 15, of Hattiesburg, Miss., started an online petition asking PepsiCo to change Gatorade’s formula.







Sarah Kavanagh and her little brother were looking forward to the bottles of Gatorade they had put in the refrigerator after playing outdoors one hot, humid afternoon last month in Hattiesburg, Miss.




But before she took a sip, Sarah, a dedicated vegetarian, did what she often does and checked the label to make sure no animal products were in the drink. One ingredient, brominated vegetable oil, caught her eye.


“I knew it probably wasn’t from an animal because it had vegetable in the name, but I still wanted to know what it was, so I Googled it,” Ms. Kavanagh said. “A page popped up with a long list of possible side effects, including neurological disorders and altered thyroid hormones. I didn’t expect that.”


She threw the product away and started a petition on Change.org, a nonprofit Web site, that has almost 200,000 signatures. Ms. Kavanagh, 15, hopes her campaign will persuade PepsiCo, Gatorade’s maker, to consider changing the drink’s formulation.


Jeff Dahncke, a spokesman for PepsiCo, noted that brominated vegetable oil had been deemed safe for consumption by federal regulators. “As standard practice, we constantly evaluate our formulas and ingredients to ensure they comply with federal regulations and meet the high quality standards our consumers and athletes expect — from functionality to great taste,” he said in an e-mail.


In fact, about 10 percent of drinks sold in the United States contain brominated vegetable oil, including Mountain Dew, also made by PepsiCo; Powerade, Fanta Orange and Fresca from Coca-Cola; and Squirt and Sunkist Peach Soda, made by the Dr Pepper Snapple Group.


The ingredient is added often to citrus drinks to help keep the fruit flavoring evenly distributed; without it, the flavoring would separate.


Use of the substance in the United States has been debated for more than three decades, so Ms. Kavanagh’s campaign most likely is quixotic. But the European Union has long banned the substance from foods, requiring use of other ingredients. Japan recently moved to do the same.


“B.V.O. is banned other places in the world, so these companies already have a replacement for it,” Ms. Kavanagh said. “I don’t see why they don’t just make the switch.” To that, companies say the switch would be too costly.


The renewed debate, which has brought attention to the arcane world of additive regulation, comes as consumers show increasing interest in food ingredients and have new tools to learn about them. Walmart’s app, for instance, allows access to lists of ingredients in foods in its stores.


Brominated vegetable oil contains bromine, the element found in brominated flame retardants, used in things like upholstered furniture and children’s products. Research has found brominate flame retardants building up in the body and breast milk, and animal and some human studies have linked them to neurological impairment, reduced fertility, changes in thyroid hormones and puberty at an earlier age.


Limited studies of the effects of brominated vegetable oil in animals and in humans found buildups of bromine in fatty tissues. Rats that ingested large quantities of the substance in their diets developed heart lesions.


Its use in foods dates to the 1930s, well before Congress amended the Food, Drug and Cosmetic Act to add regulation of new food additives to the responsibilities of the Food and Drug Administration. But Congress exempted two groups of additives, those already sanctioned by the F.D.A. or the Department of Agriculture, or those experts deemed “generally recognized as safe.”


The second exemption created what Tom Neltner, director of the Pew Charitable Trusts’ food additives project, a three-year investigation into how food additives are regulated, calls “the loophole that swallowed the law.” A company can create a new additive, publish safety data about it on its Web site and pay a law firm or consulting firm to vet it to establish it as “generally recognized as safe” — without ever notifying the F.D.A., Mr. Neltner said.


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Illinois foreclosures up for 11th month









Foreclosure activity in Illinois posted the 11th straight year-over-year increase in November, but compared with a month earlier, filings are trending in the right direction, according to new data released Thursday.

RealtyTrac said the 13,520 properties within the state that received a foreclosure notice last month was a decrease of 9 percent from October but up 9 percent from November 2011. last month's activity, which equated to one out of every 392 homes in the state receiving a notice, gave Illinois the nation's third-highest state foreclosure rate, surpassed by only Florida and Nevada.

In the Chicago-area counties of Cook, DuPage, Kane, Kendall, Lake and Will, almost 11,000 homes received a foreclosure notice in November, a decrease of 10.5 percent from October's level of activity but up 1.6 percent from November 2011

Most of that activity was in Cook County, where about 2,299 homes received initial notices of default, another 2,651 homes were scheduled for court-ordered sales and 2,086 homes were repossessed by lenders.

Among the nation's metropolitan areas, Rockford and Chicago ranked 11th and 13th, respectively, in terms of their foreclosure rates.

Nationally, the number of homes that were repossessed by lenders and became bank-owned rose on a year-over-year basis for the first time  since October 2010, the company said. In November, more than 59,000 homes across the country were repossessed, an increase of 11 percent from October and 5 percent from November 2011.

"The drop in overall foreclosure activity in November was caused largely by a 71-month low in foreclosure starts for the month, more evidence that we are past the worst of the foreclosure problem brought about by the housing bubble bursting six years ago," said Daren Blomquist, a company vice president. "But foreclosures are continuing to hobble the U.S. housing market as lenders finally seize properties that started the process a year or two ago, and much longer in some cases."

mepodmolik@tribune.com | Twitter @mepodmolik

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'Lincoln,' 'Les Miserables,' 'Playbook' lead SAG nominees









Steven Spielberg’s historical biography “Lincoln,” the musical epic “Les Miserables” and the quirky romantic comedy “Silver Linings Playbook” dominated the Screen Actors Guild Award nominations Wednesday morning, receiving four nominations apiece.


“Lincoln” scored nominations in the lead actor category for Daniel Day-Lewis, supporting actress for Sally Field, supporting actor for Tommy Lee Jones and best ensemble in a motion picture. “Les Miserables,” which opens Christmas Day, earned nominations for lead actor Hugh Jackman, supporting actress Anne Hathaway, for best acting ensemble and best stunt ensemble.


And “Silver Linings Playbook” picked up nominations for lead actor Bradley Cooper, actress Jennifer Lawrence, supporting actor Robert De Niro, and best ensemble.





With the SAG nods, the three films and their stars are instantly positioned as front-runners in the race for Academy Award nominations and possibly Oscar gold.


Also honored Wednesday with ensemble nominations were the casts from “Argo” and “The Best Exotic Marigold Hotel.” “Argo” also received a nomination for supporting actor Alan Arkin, and Maggie Smith was nominated for supporting actress for “The Best Exotic Marigold Hotel.”


Also nominated in the lead actor category are John Hawkes for “The Sessions” and Denzel Washington for “Flight.” Notably missing from the list of nominees was Joaquin Phoenix for “The Master.” (Just earlier this week, Phoenix had won the L.A. Film Critics Assn. best actor honors.)


FULL COVERAGE: SAG AWARDS 2013


Vying with Lawrence in lead actress field are Marion Cotillard for “Rust and Bone,” Jessica Chastain for “Zero Dark Thirty,” Helen Mirren for “Hitchcock” and Naomi Watts for “The Impossible.”


Rounding out the supporting categories are Javier Bardem for “Skyfall,” Philip Seymour Hoffman in “The Master,” Helen Hunt in “The Sessions” and Nicole Kidman for “The Paperboy.” Not making the list: Amy Adams for “The Master,” a role that earned her a supporting actress honor from the L.A. Film Critics.


The nominations come during one of the mostly hotly anticipated weeks of the awards season. Monday kicked off with the announcement of nominations for the Critics’ Choice Movie Awards,  followed quickly by Wednesday’s SAG nominations. In just 24 hours, the Golden Globe nominations are to be announced. When the dust settles, those with the most nominations will be considered favorites for Academy Award nominations, which are to be announced Jan. 10.


SAG AWARDS: TV nominees


Unlike other honors, the Screen Actors Guild Awards are strictly for the performers.


The SAG Awards are considered one of the leading indicators for the Academy Awards in the acting categories. But the two don’t always match. The biggest difference came earlier this year, when Viola Davis won the SAG Award for best actress for “The Help”  but Meryl Streep took home her third Oscar for “The Iron Lady.”


The SAG Awards also honor performances in TV dramatic and comedy series, as well as movies and miniseries. There were very few surprises in the TV nominations.


The casts of the dramas “Boardwalk Empire,” “Breaking Bad,” “Downton Abby,” “Homeland” and “Mad Men” were honored with nominations. On the comedy side, there were six nominees due to a tie: “30 Rock,” “The Big Bang Theory,” “Glee,” “Modern Family,” “Nurse Jackie” and “The Office.”


Other TV honorees included Kevin Costner, Jim Parsons, Alec Baldwin, Nicole Kidman, Jon Hamm, Tina Fey, Betty White, and Bryan Cranston.


The 19th Screen Actors Guild Awards presentation is to be carried live on TNT and TBS on Jan. 27 from the Shrine Auditorium & Exposition Center in Los Angeles. As previously announced, Dick Van Dyke is set to receive the guild’s lifetime achievement award.


ALSO:



BUZZMETER: Who's ahead in the Oscar race


VIDEO: Highlights from the Envelope Screening Series


PHOTOS: Best and worst moments from 2012 SAG Awards


susan.king@latimes.com and rene.lynch@latimes.com






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Here’s the Pope’s First Tweet






The long wait is over and we’ve finally got the first words of Twitter wisdom from Pope Benedict XVI. 



Dear friends, I am pleased to get in touch with you through Twitter. Thank you for your generous response. I bless all of you from my heart.






Benedict XVI (@Pontifex) December 12, 2012


Ok, so not that funny, but it was all spelled right and we got blessed by a pope, so that’s a good start. And the Pope did actually send the message himself. Pope Benedict appeared on Wednesday morning for his regular weekly address in front of throngs of media and worshipers, and personally hit the tweet button himself on his iPad. Vatican officials say that before the end of the day he will be answering three questions that were submitted to the #askpontifex hashtag earlier this month. Here’s the first of those:



How can we celebrate the Year of Faith better in our daily lives?


— Benedict XVI (@Pontifex) December 12, 2012



By speaking with Jesus in prayer, listening to what he tells you in the Gospel and looking for him in those in need


— Benedict XVI (@Pontifex) December 12, 2012


He actually tweeted in Italian first and his other language accounts weren’t far behind. Follow @Pontifex for more 140 character sermons.


Social Media News Headlines – Yahoo! News


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Publisher Bonnier, Flingo partner to make Smart TV Apps






NEW YORK (TheWrap.com) – Bonnier, the publisher of magazines like Savuer and Popular Science, and Flingo, the largest publisher of apps for Smart TVs, have partnered to create a series of apps extending Bonnier’s titles onto Internet-enabled TV sets and set-tops boxes like the Roku.


Together, they will release a new app for each magazine, offering videos, images and archival content for fans. Savuer has a couple of web series, including “The Test Kitchen” which helps home chefs learn how to peel garlic or dice an onion. Those videos, currently on Saveur’s website YouTube channel, will resurface in the apps, which will be distributed for free in app markets thanks to advertising and sponsors.






Though smart TVs remain a small segment of the TV market, Bonnier believes it is an ideal platform for leading media companies to extend their brand.


“This is about going after new technologies and being at the forefront,” Sean Holzman, Bonnier’s Chief Brand Development Officer, told TheWrap. “We don’t look closely at what other publishing companies may be doing. Flingo has a universe of 15 million devices and that should double in 2013.”


The emphasis will be on video since research demonstrates that it remains the top activity, even more than gaming.


Ashwin Navin, CEO of Flingo, said that while many media companies are putting secondary titles on Internet-enabled TVs, Bonnier is using its top titles.


“Major media companies aren’t putting their crown jewels on smart TVs,” Navin told TheWrap. He added that when they measure how long users spend online with certain brands, websites register just a few minutes.


“You see 10 times that in a TV app. People are more captive and less ADD.”


TV News Headlines – Yahoo! News


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The New Old Age Blog: The Gift of Reading

This is the year of the tablet, David Pogue of The Times has told us, and that may be good news for seniors who open holiday wrappings to find one tucked inside. They see better with tablets’ adjustable type size, new research shows. Reading becomes easier again.

This may seem obvious — find me someone over 40 who doesn’t see better when fonts are larger — but it’s the business of science to test our assumptions.

Dr. Daniel Roth, an eye specialist and clinical associate professor at the Robert Wood Johnson Medical School in New Brunswick, N.J., offered new evidence of tablets’ potential benefits last month at the annual meeting of the American Academy of Ophthalmology.

His findings, based on tests conducted with 66 adults age 50 and over: older people read faster (a mean reading speed of 128 words per minute) when using an iPad, compared to a newspaper with the same 10-point font size (114 words per minute).

When the font was increased to 18 points — easy to do on an iPad — reading speed increased to 137 words per minute.

“If you read more slowly, it’s tedious,” Dr. Roth said, explaining why reading speed is important. “If you can read more fluidly, it’s more comfortable.”

What makes the real difference, Dr. Roth theorizes, is tablets’ illuminated screen, which heightens contrast between words and the background on which they sit.

Contrast sensitivity — the visual ability to differentiate between foreground and background information — becomes poorer as we age, as does the ability to discriminate fine visual detail, notes Dr. Kevin Paterson, a psychologist at the University of Leicester, who recently published a separate study on why older people struggle to read fine print.

“There are several explanations for the loss of sensitivity to fine detail that occurs with older age,” Dr. Paterson explained in an e-mail. “This may be due to greater opacity of the fluid in the eye, which will scatter incoming light and reduce the quality of the projection of light onto the retina. It’s also hypothesized that changes in neural transmission affect the processing of fine visual detail.”

Combine these changes with a greater prevalence of eye conditions like macular degeneration and diabetic retinopathy in older adults, and you get millions of people who cannot easily do what they have done all their lives — read and stay connected to the world of ideas, imagination and human experience.

“The No. 1 complaint I get from older patients is that they love to read but can’t, and this really bothers them,” Dr. Roth said. The main option has been magnifying glasses, which many people find cumbersome and inconvenient.

Some words of caution are in order. First, Dr. Roth’s study has not been published yet; it was presented as a poster at the scientific meeting and publicized by the academy, but it has not yet gone through comprehensive, rigorous peer review.

Second, Dr. Roth’s study was completed before the newest wave of tablets from Microsoft, Google, Samsung and others became available. The doctor made no attempt to compare different products, with one exception. In the second part of his study, he compared results for the iPad with those for a Kindle. But it was not an apples to apples comparison, because the Kindle did not have a back-lit screen.

This section of his study involved 100 adults age 50 and older who read materials in a book, on an iPad and on the Kindle. Book readers recorded a mean reading speed of 187 words per minute when the font size was set at 12; Kindle readers clocked in at 196 words per minute and iPad readers at 224 words per minute at the same type size. Reading speed improved even more drastically for a subset of adults with the poorest vision.

Again, Apple’s product came out on top, but that should not be taken as evidence that it is superior to other tablets with back-lit screens and adjustable font sizes. Both the eye academy and Dr. Roth assert that they have no financial relationship with Apple. My attempts to get in touch with the company were not successful.

A final cautionary note should be sounded. Some older adults find digital technology baffling and simply do not feel comfortable using it. For them, a tablet may sit on a shelf and get little if any use.

Others, however, find the technology fascinating. If you want to see an example that went viral on YouTube, watch this video from 2010 of Virginia Campbell, then 99 years old, and today still going strong at the Mary’s Woods Retirement Community in Lake Oswego, Ore.

Ms. Campbell’s glaucoma made it difficult for her to read, and for her the iPad was a blessing, as she wrote in this tribute quoted in an article in The Oregonian newspaper:

To this technology-ninny it’s clear
In my compromised 100th year,
That to read and to write
Are again within sight
Of this Apple iPad pioneer

Caregivers might be delighted — as Ms. Campbell’s daughter was — by older relatives’ response to this new technology, a potential source of entertainment and engagement for those who can negotiate its demands. Or, they might find that old habits die hard and that their relatives continue to prefer a book or newspaper they can hold in their hands to one that appears on a screen.

Which reading enhancement products have you used, and what experiences have you had?

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Chicago best housing market -- for buyers













Chicago home sales


A sign stands outside a house for sale in the 4400 block of North Mozart Avenue in Chicago.
(Chris Sweda/ Chicago Tribune / December 12, 2012)





















































The Chicago area again took the top spot in Zillow's ranking of the best real estate markets for homebuyers, an accolade that is unwelcome news to homeowners trying to sell their properties.

The real estate web site also tapped Chicago in July as the best buyer's market among the nation's 30 largest metropolitan areas.

To calculate its rankings, Zillow looked at selling prices versus list prices, the number of days a listing was on Zillow and the percentage of homes in a market with a price cut. Its ranking as the top buyer's market means properties in the Chicago area stay on the market longer, with more frequent price cuts and sell for less than their listing price, all factors that give prospective buyers more power at the negotiating table.

Among the local municipalities, Inverness, Lansing, Rolling Meadows, Winnetka and Darien were ranked as the top five markets for homebuyers. Sellers had the most negotiating power in Plano, Sycamore, Carpentersville, Elgin and Matteson, according to Zillow.

In November, Zillow identified Chicago as the only market of 30 it follows that experienced month-over-month home value declines in October.

mepodmolik@tribune.com | Twitter @mepodmolik


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Pilot, 2 nurses killed in medical helicopter crash

Three people were killed when a medical helicopter crashed Monday night near the city of Rochelle.









A medical helicopter crashed Monday night on its way to a hospital in Mendota, killing the pilot and two nurses on board, officials said.


The helicopter was registered to Rockford Memorial Hospital and was enroute to pick up a patient at Mendota Community Hospital, officials said.


The helicopter crashed about 8:30 p.m. in a field in the small town of Compton, near the city of Rochelle. The helicopter was destroyed in the crash, according to the FAA.








The Rockford hospital identified the helicopter's occupants as pilot Andy Olesen and flight nurses Jim Dillow and Karen Hollis.


"At Rockford Health System, our hearts are heavy," hospital spokesman Wester Wuori said in a statement. "We grieve the loss of three heroes who dedicated their careers to serving others."


On the hospital's Facebook page, hundreds of people, many of them paramedics and other emergency responders, offered their condolences to the victims' families.


Authorities established a staging area near the intersection of U.S. Route 30 and Illinois Route 251, a dispatcher with the Lee County Sheriff's Office said. The intersection lies between Rochelle and Mendota.


The National Transportation Safety Board will lead the investigation into what caused the crash, according to the FAA.


The nurses and pilots who work in air ambulances are among the best trained in their fields, said Stephen Richey, a former flight respiratory therapist who lives in Indianapolis.


Pilots must be able to land on improvised landing sites on short notice, and the flight nurses on board often must deliver advance medical care to critically injured trauma patients.


The work draws those with years of experience and a deep commitment to helping patients, Richey said.


"You’ll never find a more dedicated group of professionals in your entire life," Richey said.


Medical flight crews also face daily risks. Richey became an aviation safety researcher after losing several friends in crashes, he said.


In October 2008, a medical helicopter crashed after striking a radio tower in Aurora, killing three crew members and a 1-year-old girl.







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Rate of Childhood Obesity Falls in Several Cities


Jessica Kourkounis for The New York Times


At William H. Ziegler Elementary in Northeast Philadelphia, students are getting acquainted with vegetables and healthy snacks.







PHILADELPHIA — After decades of rising childhood obesity rates, several American cities are reporting their first declines.




The trend has emerged in big cities like New York and Los Angeles, as well as smaller places like Anchorage, Alaska, and Kearney, Neb. The state of Mississippi has also registered a drop, but only among white students.


“It’s been nothing but bad news for 30 years, so the fact that we have any good news is a big story,” said Dr. Thomas Farley, the health commissioner in New York City, which reported a 5.5 percent decline in the number of obese schoolchildren from 2007 to 2011.


The drops are small, just 5 percent here in Philadelphia and 3 percent in Los Angeles. But experts say they are significant because they offer the first indication that the obesity epidemic, one of the nation’s most intractable health problems, may actually be reversing course.


The first dips — noted in a September report by the Robert Wood Johnson Foundation — were so surprising that some researchers did not believe them.


Deanna M. Hoelscher, a researcher at the University of Texas, who in 2010 recorded one of the earliest declines — among mostly poor Hispanic fourth graders in the El Paso area — did a double-take. “We reran the numbers a couple of times,” she said. “I kept saying, ‘Will you please check that again for me?’ ”


Researchers say they are not sure what is behind the declines. They may be an early sign of a national shift that is visible only in cities that routinely measure the height and weight of schoolchildren. The decline in Los Angeles, for instance, was for fifth, seventh and ninth graders — the grades that are measured each year — between 2005 and 2010. Nor is it clear whether the drops have more to do with fewer obese children entering school or currently enrolled children losing weight. But researchers note that declines occurred in cities that have had obesity reduction policies in place for a number of years.


Though obesity is now part of the national conversation, with aggressive advertising campaigns in major cities and a push by Michelle Obama, many scientists doubt that anti-obesity programs actually work. Individual efforts like one-time exercise programs have rarely produced results. Researchers say that it will take a broad set of policies applied systematically to effectively reverse the trend, a conclusion underscored by an Institute of Medicine report released in May.


Philadelphia has undertaken a broad assault on childhood obesity for years. Sugary drinks like sweetened iced tea, fruit punch and sports drinks started to disappear from school vending machines in 2004. A year later, new snack guidelines set calorie and fat limits, which reduced the size of snack foods like potato chips to single servings. By 2009, deep fryers were gone from cafeterias and whole milk had been replaced by one percent and skim.


Change has been slow. Schools made money on sugary drinks, and some set up rogue drink machines that had to be hunted down. Deep fat fryers, favored by school administrators who did not want to lose popular items like French fries, were unplugged only after Wayne T. Grasela, the head of food services for the school district, stopped buying oil to fill them.


But the message seems to be getting through, even if acting on it is daunting. Josh Monserrat, an eighth grader at John Welsh Elementary, uses words like “carbs,” and “portion size.” He is part of a student group that promotes healthy eating. He has even dressed as an orange to try to get other children to eat better. Still, he struggles with his own weight. He is 5-foot-3 but weighed nearly 200 pounds at his last doctor’s visit.


“I was thinking, ‘Wow, I’m obese for my age,’ ” said Josh, who is 13. “I set a goal for myself to lose 50 pounds.”


Nationally, about 17 percent of children under 20 are obese, or about 12.5 million people, according to the Centers for Disease Control and Prevention, which defines childhood obesity as a body mass index at or above the 95th percentile for children of the same age and sex. That rate, which has tripled since 1980, has leveled off in recent years but has remained at historical highs, and public health experts warn that it could bring long-term health risks.


Obese children are more likely to be obese as adults, creating a higher risk of heart disease and stroke. The American Cancer Society says that being overweight or obese is the culprit in one of seven cancer deaths. Diabetes in children is up by a fifth since 2000, according to federal data.


“I’m deeply worried about it,” said Francis S. Collins, the director of the National Institutes of Health, who added that obesity is “almost certain to result in a serious downturn in longevity based on the risks people are taking on.”


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HSBC to pay record $1.9B fine









HSBC has agreed to pay a record $1.92 billion fine to settle a multi-year probe by U.S. prosecutors, who accused Europe's biggest bank of failing to enforce rules designed to prevent the laundering of criminal cash.

HSBC Holdings Plc admitted to a breakdown of controls and apologised in a statement on Tuesday announcing it had reached a deferred-prosecution agreement with the U.S. Department of Justice, as first reported by Reuters last week.

"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes," said Chief Executive Stuart Gulliver.

"Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters."

The deferred prosecution agreement, when detailed by U.S. Justice Department officials later on Tuesday, could yield new information about a failure at HSBC to police transactions linked to Mexico, sources familiar with the matter said.

Details of those dealings were reported this summer in a sweeping U.S. Senate probe. 

The Senate panel alleged that HSBC failed to maintain controls designed to prevent money laundering by drug cartels, terrorists a nd tax cheats, when acting as a financier to clients routing funds from places including Mexico, Iran and Syria.

The bank was unable to properly monitor $15 billion in bulk cash transactions between mid-2006 and mid-2009, and had i nadequate staffin g a nd high turnover in it s c ompliance units, July's re port said.

HSBC on Tuesday said it expected to also reach a settlement with British watchdog the Financial Services Authority. The FSA declined to comment.

U.S. and European banks have now agreed to settlements with U.S. regulators totalling some $5 billion in recent years on charges they violated U.S. sanctions and failed to police potentially illicit transactions.

No bank or bank executives, however, have been indicted, as prosecutors have instead used deferred prosecutions - under which criminal charges against a firm are set aside if it agrees to conditions such as paying fines and changing behaviour.

HSBC's settlement also includes agreements or consent orders with the Manhattan district attorney, the Federal Reserve and three U.S. Treasury Department units: the Office of Foreign Assets Control, the Comptroller of the Currency and the Financial Crimes Enforcement Network.

HSBC said it would pay $1.921 billion, continue to cooperate fully with regulatory and law enforcement authorities and take further action to strengthen its compliance policies and procedures. U.S. prosecutors have agreed to defer or forego prosecution.

The settlement is the third time in a decade that HSBC has been penalized for lax controls and ordered by U.S. authorities to better monitor suspicious transactions. Directives by regulators to improve oversight came in 2003 and again in 2010.

Last month, HSBC told investors it had set aside $1.5 billion to cover fines or penalties stemming from the inquiry and warned costs could be significantly higher.

Analyst Jim Antos of Mizuho Securities said the settlement costs were "trivial" in terms of the company's book value.

"But in terms of real cash terms, that's a huge fine to pay," said Antos, who rates HSBC a "buy".

HSBC shares dipped 0.3 percent in early London trading to 63 9 pe nce, in line with a slightly weaker European bank index . I ts Ho ng Kong stock nudged up 0.3 percent to HK$79.70.

"It has been damaging for the brand, albeit not as bad as it might have been," said Ian Gordon, analyst at Investec Securities in London.

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