It was 2003 as HSBC talked about experting the “Household Model” of predatory lending to other countries. Even through early 2006 the Household Model seemed like a rosy idea to HSBC. By 2007 it was a horribly different story. But securitizing debts in countries other than the US and UK may soon be on the table once again.
HSBC Holdings PLC is looking at selectively growing its unsecured lending business in India, the chief executive of its local unit said Wednesday.
“We now have considerable experience in terms of behavioral scoring, and we also have the benefit of the CIBIL [Credit Information Bureau of India Ltd.],” Stuart Davis told reporters on the sidelines of a banking conference.
While the debt may be unsecured the Asset Backed Security model is not dead yet. Even though it crashed an burned in the United States banks were able to extract profits for many years until greed clouded reality. It is simply a matter of moving the scheme to other countries.
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