March 30 — HSBC Finance Corp., the U.S. home- lending unit for Europe’s biggest bank, goes to trial this week on claims that a corporate predecessor hid predatory lending from shareholders.
Jury selection is set for today in federal court in Chicago, a city where a record 19,943 home foreclosures were filed last year. Plaintiffs claim the suit may be worth $1 billion.
The case is Lawrence E. Jaffe Pension Plan v. Household International Inc., 02-cv-05893, U.S. District Court for the Northern District of Illinois (Chicago).
See the complete article by Andrew M. Harris of Bloomberg
The defense may counter by claiming their lending practices were neither unlawful nor undisclosed, an argument he said may be a tough sell because of the economy.
“Where the rubber is going to meet the road on this is going to be how close were those practices to the line,” between legality and illegality, David Porteous of Chicago-based Levenfeld Perlstein LLC said.
Here at Household - HSBC Watch our analysts know Household and HSBC Finance operated right on the line, if not over. There are at least four grey areas where we always suspected the company of fraud, racketeering, or both.
Related posts:
- HSBC disagrees with Lawrence E. Jaffe Pension Plan v. Household International, Inc
- HSBC and Household International lose jury trial in Chicago
- New lawsuit alleges HSBC systematic institutionalized racism
- Timeline of Household International and HSBC troubles
- Presenting Household International as HSBC Consumer Lending
