Household HSBC Watch

Citigroup Inc. , the largest U.S. bank, on Friday reported quarterly profit that missed analysts’ forecasts, as weaker credit card results offset investment banking growth. Much of the U.S. banking sector has suffered from narrowing margins, or the difference between borrowing and lending costs, as the Federal Reserve pushes up short-term interest rates.

HSBC credit card operations, run by former predatory lender Household International, are also predicted to suffer as customers, weary from fighting fraudulent late fees and identity theft, continue to report HSBC to federal and state authrities. HSBC has been unable to change customer service attitudes, where CSR’s often tell well-healed customers they are lying. Clearly the economy is ripe to make HSBC’s purchase of Household International a bigger liability in the United States.