As the world prepares for HSBC’s annual earnings report, we continue to receive reports that United States operations under HSBC Finance Corporation continues to frustrate and alienate customers. HSBC is reducing credit limits on many credit cards, stranding customers and embarrassing others.

That results in unhappy HSBC customers and very few happy HSBC employees. Private label credit cards are not doing well either, as evidenced by customer complaints. A lawsuit filed in California on February 17, 2009, shows HSBC does not have total control over the business.

In fact HSBC may not have total control over executives, as Michael Geohegan spoke for months against lavish bonuses. Now there is talk of approximately $4 million in bonuses for executives.

This chart, provided by the Office of the Comptroller of the Currency, shows HSBC’s position relative to derivatives. This is a massive amount of exposure. Through it all, HSBC has refused government help, both in the UK and the US.

While many, including employees, suspect HSBC does not want anyone looking at their books in the US, talk of a rights issue continues. Morgan Stanley analysts forecast HSBC should raise $20 billion, and said it could need $30 billion.

Related posts:

1. Does HSBC need even more cash?
2. Like AIG the HSBC shareholders want bonuses repaid, no reward for failure
3. HSBC and others increased exposure to defaults
4. Writing HSBC board of directors gets customer satisfaction
5. HSBC CML denying Christmas cash to customers