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  • HSBC has indefinitely dropped plans to relocate its headquarters from London to Hong Kong over tougher regulations, according to CEO Stuart Gulliver.
  • The U.S. Financial Industry Regulatory Authority has fined Citigroup Global Markets $3.5 million for providing “inaccurate mortgage performance information, supervisory failures and other violations” in connection with subprime residential mortgage-backed securitizations.
  • The U.K.’s Financial Services Authority has approved Hearthstone Investments’ TM Hearthstone U.K. Residential Property Fund, the first regulated residential property fund.
  • Cantor Fitzgerald has hired Al Milano as senior managing director and head of mortgage sales in its New York office.
  • JPMorgan Chase’s chief investment office, said to be responsible for the trades that resulted in billion in losses, has more than $100 billion in positions in asset-backed securities and structured products.
  • South Korea’s Woori Bank has sued Citigroup to recover $95 million in losses it says it has suffered from its investment in collateralized debt obligations.
  • The U.S. Securities and Exchange Commission has named James Burns as deputy director in the Division of Trading and Markets in charge of market oversight and operations, derivatives policy and trading practices.
  • The Securities Industry and Financial Markets Association has expressed concern over proposals by the U.S. Financial Industry Regulatory Authority to increase transparency in the mortgage-backed securities market.
  • Law firm Barnes & Thornburg has established a lending and structured finance practice group to be chaired by partners Michael Campbell and Nancy Schimmel.