Household HSBC Watch

Articles continue to appear in the British press regarding Marks and Spencer. It appears the ailing retailer announced the departure of four main board directors and two other senior executives. HSBC subsidiary HSBC Finance Corporation acquired the firm’s credit card portfolio. As part of the deal Marks and Spencer receives fifty percent of profits as ongoing compensation.

Even when HSBC Finance Corporation was named Household International, trends show that troubled companies sign on with Household - HSBC because they are promissed higher returns and more liberal financing for customers. Investors and regulators must ask about the risk, subordinated positions, and perhaps the predatory nature of sub-prime loans which make up the investment portfolio.

Customers must ask how they will be treated and how their credit will survive if their store credit card, known as a “private label” credit card, is handled by one of the world’s most famous predatory lenders, which is now a subsidiary of HSBC. Finally HSBC Plc must ask how their reputation will fare as America’s most famous predatory lender interacts with Britain’s shoppers. Household - HSBC Watch created a category for M&S customer reports.