With its decision to exit from consumer finance, HSBC Holdings PLC (HBC) threw cold water on hopes that a large bank can overcome the funding hurdles inherent in that business.
The London bank, which has sizable banking operations in the U.S. and considers the market here one of its most important globally, said it would reverse a significant part of its expansion beyond banking.
During a conference call with reporters, Niall Booker, chief executive of HSBC Finance Corp., said subprime lending as a stand-alone operation is a failed business model.
Related posts:
