Household HSBC Watch

October 22, 2004
University of Maryland University College
3501 University Blvd. East,
Adelphi, MD 20783

Nicholas Allen:

On March 28th, 2003 HSBC completed the acquisition of predatory lender Household International, a deal which was in the works when UMUC aligned themselves with Household. Two days after the acquisition was finalized, this news broke:

“”LONDON -(Dow Jones)- HSBC Holdings PLC (HBC, news) is under pressure to explain its relationship with a blacklisted Iraqi bank owned by President Saddam Hussein’s regime, the Observer reported Sunday.

The paper said an Observer investigation had revealed senior directors of HSBC have had regular board meetings in London with senior officials of the Rafidain Bank, which is based in Baghdad. Rafidain has been on a U.N. sanctions blacklist since trade with Iraq was outlawed after the 1991 Gulf war. The Observer said investigators have always believed banks such as Rafidain have helped Saddam to run an international banking network in defiance of U.N. sanctions, allowing him to receive funds that might enable him to buy weapons.

The Observer said it has discovered that Rafidain has a 5% stake in the British Arab Commercial Bank, of which HSBC owns 47%. One of Saddam’s money men is on the board of BACB and has flown to London to attend board meetings. Recent documents filed with U.K. authorities show the position is currently filled by Bassim Mahdi - head of Rafidain’s international division at the bank’s Baghdad headquarters.”"

I reiterate - due diligence: UMUC. DOD contracts, Household, HSBC acquisition, an investigation of HSBC concerning money laundering for terrorists (pre-UMUC), and Rafidain since 1991? Or is this just “shock and awe” to UMUC? This past weekend we made our opposition to your alignment with Household International perfectly clear to selected lawmakers. Our position is that, among other key points, UMUC should lose all government contracts and the right to compete for government contracts, or UMUC shall cancel your deal with Household International.

Sincerely

T. Blake
United States Marine Corps (retired)
Chief Investigator, Household Watch Consumer Advocates