In the first six months of this year, HSBC sold about $371 million in loans originated by Decision One to its U.S. bank and recorded a pretax loss of $400,000 from the deal. We assume that means HSBC USA. In contrast, HSBC booked a $17 million pretax gain on Decision One loan sales during the fourth quarter of 2006, its financial statements show.

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STRICKEN lender Northern Rock, whose shares have lost nearly three-quarters of their value since last weekend’s bank run, is continuing to struggle to attract a buyer, according to weekend reports. At least 12 of the UK and Europe’s biggest banks, including HSBC, are said to have decided not to buy the Newcastle-based lender. The banks have estimated that it would require too much capital - as much as £20 billion - to refinance Northern Rock.

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HSBC Holdings PLC, Europe’s biggest bank, said yesterday that it would close its U.S. subprime mortgage unit, cutting 750 jobs and taking $945 million (U.S.) in charges and writedowns, because the business is no longer sustainable.

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There is more to HSBC’s subprime fallout around the world. The American dollar is tumbling around the world. On Thursday it reached parity with the Canadian dollar for the first time in 30 years and hit its lowest level yet against the euro, also dipping relative to the British pound and hitting a nine-year low against the Indian rupee. As the U.S. Federal Reserve dropped interest rates to help a stalled American economy, other countries saw the move as a signal to return to the same lending and subprime mortgage stupidity that caused shockwaves around the world.

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In a blow to HSBC efforts to expand investment banking, HSBC served as a trustee for the investment portion of the business from August 2003 to March 2005, when a federal court shut down Pension Fund at SEC’s behest. HSBC’s name and logo appeared throughout the firm’s marketing materials, which were not properly reviewed, the SEC said.

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