Household HSBC Watch

Sir John Bond, in the golden years of his life, wants to leave a legacy that he can be rightfully proud of. Nobody wants to go out on a bad note. Fortunately or unfortunately, one is often remembered for the major incidents preceeding retirement.

Household International in the news this month, November 2004:

1. HSBC Retail Services merchant declares bankruptcy - Rhodes Furniture, with credit card operations by Household International, went into chapter 11 bankruptcy.

2. HSBC Retail Services merchant Bally Total Fitness Holding Corp., the largest U.S. gym operator, will restate results for the past four years as well as the first quarter of this year.

3. Household Profit falls 32 percent - HSBC Holdings PLC’s Household International Inc. unit said third-quarter profit fell 32 percent as it set aside more money for problem loans and costs for ‘’support services'’ from HSBC affiliates. Net income at the Prospect Heights-based consumer-finance unit of Europe’s largest bank by market value fell $322 million from $472 million a year earlier, London-based HSBC said. About a quarter of HSBC’s profit comes from Household.

4. Arizona Targets Shady Lenders - reported in the Arizona Republic

5. Consumer advocacy group spots new trend in transfer of GE credit card accounts to HSBC - Household Retail Services.

6. HSBC Holdings Plc had its biggest decline in more than a year after the bank’s Household International Inc. unit in the U.S. said third-quarter profit fell 32 percent. - Bloomberg

7. American Express sues Visa International Inc. and MasterCard International Inc. and a unit of Household International - The suit, which also names eight banks as defendants, seeks billions of dollars in damages. Among the banks cited are JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co., and a unit of Household International Inc., all of which were members of Visa’s or MasterCard’s board.

(HSBC North America Chairman William F. Aldinger is on the board of MasterCard International.)

8. HSBC USA Inc., the immediate corporate parent of HSBC Bank USA, said net income for the third quarter rose 71 percent because it sold more mortgages and consumer loans, and spent less on salaries and benefits.

As a reminder, Household - HSBC’s biggest retailer has been sued in two states. “The sheer number of complaints coupled with the types of allegations my office received prompted us to file this lawsuit.” said Ohio Attorney General Jim Petro. “The primary objective of this lawsuit is to bring Best Buy into conformity with Ohio’s consumer protection laws and ensure that Best Buy’s Ohio customers receive the service they deserve.”