Household HSBC Watch

HSBC plans to put a big chunk of its New York headquarters up for lease, vacating more than 200,000 square feet at its 29-story building at 452 Fifth Avenue. The bank, which occupies the tower in its entirety, is opening up floors 12 through 29, a spokeswoman confirmed on Wednesday evening, making available a big block of space one block south of Bryant Park. “We’re always looking to maximize whatever real estate we’ve got. This is certainly a prime property,” HSBC spokeswoman Linda Recupero said.

Eliot Brown of the New York Observer broke this story. You can see the full report here

Contacts at Household - HSBC Watch who work the live help desk for the consumer advocates reported an abnormally large number of people from around the country who were searching on HFC and Beneficial Finance layoffs. “The reason makes sense now that we see this article” said one. “Perhaps there is more to follow, as the web visitors were from around the country, not concentrated in New York.”

Some analysts say operations could shift to the Chicago area. HSBC bought Household International which is now called HSBC Finance and still based in the Chicago area. Vacancies are expected at that location, and HFC and Beneficial Finance locations are expectd to close in the United States. Other analysts say consumers hard hit by subprime mortgages and second mortgages could start defaulting on their credit cards, thus putting HSBC in a very bad position. Credit card operations are also run by HSBC Finance.