“The most recent high profile mortgage distress signal came from HSBC, the world’s third largest bank in marketcap size behind Citigroup and Bank of America. What an unmitigated disaster their acquisition was in 2003 of Household International, a lender to subprime borrowers. HSBC increased their loan loss reserves to $1.38 billion in Q3 from $1.25 billion in Q2, and reported a 3.99% delinquent rate (over two months past due) for mortgages, car loans, and credit cards. They admit not to doing their homework before the acquisition of Household, a financial firm specializing in deadly adjustable mortgages.” (published here - see full article) published on Wednesday, January 17, 2007
Advocates at Household - HSBC Watch cautioned HSBC back in 2003. Household International was headed for legal problems and bankruptcy. HSBC finally admitted in 2007 to failing to do their homework. At Household - HSBC Watch we were asking “What were they thinking” back in 2003. As William F. Aldinger lied to his employees and sold a cow’s ear as a silk purse to John Bond and HSBC the only winner in the entire scam was William F. Aldinger.
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