HSBC tumbled 13.5 percent on Friday October 24 as investors focused on the bank’s exposure to the American mortgage market and the impact that rising corporate defaults could have on their credit derivative exposure. Exposure? In reality HSBC was, and is, heavily involved with American subprime, thanks to Household International and HSBC Finance (HSBC Consumer Credit).

Starting with William F. Aldinger, and later Siddarth (you can call me Bobby) Mehta, the HSBC executive in charge of HSBC USA is also the executive in charge of HSBC Finance. The position is in Illinois, not in New York. HSBC was one of the earliest to suffer subprime pain. The bank’s warning last February that it was stepping up its loan provision at its Household International division in the U.S. was seen as one of the first signs of the global subprime crisis.

Related posts:

1. HSBC subprime credit card business profitable, high interest rates cited
2. How to silence predictive dialers and creditor phone calls
3. HSBC, Bill Aldinger, and global subprime financial destruction
4. HSBC and others increased exposure to defaults
5. HSBC Consumer Lending is largest subprime lender in America