Household HSBC Watch

Today is not a good day for HSBC, leaving the bank in a position it may have never anticpated. Layoffs continue at HFC and Beneficial Finance branches in the United States, Goldman Sachs said HSBC may be required to set aside another $12 billion for subprime bad debts, and HSBC kept two SIVs solvent with another $35 billion. Experts also say credit card defaults might be the next round of problems for HSBC. Other analysts say foreclosures in the U.K., known as repossessions, might mirror the problems experienced in the United States.

In Switzerland HSBC’s private banking arm has dismissed three employees, said a bank spokesman, who played down a report they had run up large trading losses. HSBC is conducting an internal investigation after the three employees were dismissed last week.

Complaints about HSBC Finance, formerly Household International, continue to attract the attention of state regulators. The following was received this morning: “Payment mailed 12 days before due date and still got charged a $29 late fee. Here is the kicker.. I live 25 Miles max from the HSBC Processing center!! Called HSBC - HRS and explained the situation but they would not budge on reversing the late fee. Account is by Marlo’s Furniture that was opened almost 4 years ago where I bought furniture using their No Interest for 4 years promo. I have been religiously paying the account for almost 4 years and now they are saying that my 2nd to the last payment is late. I just sent the last payment via certified mail and already contacted the Maryland Attorney General’s Office.”

Complaints about HSBC Finance are processed daily by advocates at Household - HSBC Watch, and can be seen in their New Complaints and Horror Stories area.