Is HSBC treading water as the financial crisis builds? There is little news from HSBC if you filter out reports of how great they are or which green initiative they support this week. “We question how long HSBC shares can continue to tread water in the face of falling earnings and increased pressure on capital,” Morgan Stanley analysts led by Anil Agarwal wrote in a report today. Here at the advocacy center we wonder about it too. HSBC Finance, HSBC Consumer Credit, or whatever HSBC calls the division these days, is under pressure.
The fact of the matter is that HSBC’s HFC and Beneficial Finance target consumers that are under the most pressure. Whether HSBC USA admits it or not, layoffs continue within the organization. Credit card defaults continue to rise. The good news for cash-strapped customers is that gas prices finally went down. The bad news is that heating costs are kicking in as cold weather is upon us. Yes, it might be an ugly winter for everyone. And yes, HSBC is simply treading water.
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