HSBC Australia chief executive Stuart Davis said HSBC likes his credit cards. A year ago the bank introduced a credit card system developed by the group’s US finance company subsidiary Household International (now called HSBC Finance Corporation).
Archive for » July, 2007 «
Many other countries have not gotten down to the dirty task of lending money for housing to people who can’t afford it and then financially leveraging the loans to create billions in false value. That’s what the U.S. has done and it has the potential to impact people around the world. The U.S. subprime market has been used in numerous fund portfolios.
Category: 2007 HSBC
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HSBC plans to refocus on emerging markets as the bank’s experiment with Household International taught them to play elsewhere. The problem with emerging markets is that they are emerging. Take the case of China’s equivalent of the US Food and Drug Administration chief. Within three weeks the man was charged with fraud, found guilty, and executed. China has executed four people for bank fraud as part of its crackdown on white-collar crime ahead of a string of bank sell-offs. In June Huang Yantian, the ex-president of an investment firm that collapsed owing $5bn in 1999 was sentenced to 14 years in jail for fraud.
Category: 2007 HSBC
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In past years as a former customer I felt cheated, swindled, and was lied to by HFC - Household International. No, I was not the victim of foreclosure. Nor was I duped by my Best Buy credit card interest free period. That happened to my wife. I admit my wife and I were hoping Household International would go broke. Instead, HSBC bought the predatory lender. For those still involved with HSBC, HFC, and Beneficial Finance in the United States you have now been economically decoupled.
Category: 2007 HSBC
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No matter how you spell it around the world - subprime, sub-prime, or sub prime - it is still a concern for the largest banks in the world. Four of the five, however, are not very concerned as limited exposure and a weak dollar put them in a great position. HSBC, reporting today, could be the only exception to the expected promising numbers. The group appears to be the main US sub-prime default casualty, having been the first to raise the alarm at the tail end of last year, and some analysts are forecasting its increased impairment charges will hurt profits. HSBC recently said defaults have spread to other areas of consumer lending. Perhaps one should look for a fire sale at HSBC Finance which could move the unit out of the United States.
Category: 2007 HSBC
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