Household HSBC Watch

Combining HSBC’s prime and subprime units, over 32 percent of HSBC’s mortgages are higher cost, subject to a rate spread. This is inconsistent with HSBC’s claims, at the time it acquired Household International and since, that only a small part of its mortgage loans are subprime. Sir John Bond said that 63% of Household’s loans were prime, at HSBC’s shareholders’ meeting on March 28, 2003, at which the Household acquisition was voted on.

According to consumer advocates at HSBC Watch, between March 2003 and June 2005, Sir John Bond began to see how Household and Bill Aldinger duped the HSBC system. “HSBC’s investment in Household International is still a risky venture” said HSBC Watch. “The reputational cost cannot be measured in dollars or pounds” the group said. (see more)