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 […]

The action reminds everyone of Bear Sterns. HSBC must inject $45 billion to keep two funds afloat. Structured investment vehicles, or SIVs, raise money in the short-term commercial paper market and use it to invest in longer-term assets, such as mortgages. Since HSBC is in such a bad position relative to subprime […]

HSBC may have to set aside a further $12 billion for U.S. subprime bad debts as customer defaults spread, analysts at Goldman Sachs Group Inc. said.

“The problem for HSBC now is the prospect of mounting non- performing loans and substantial losses for Household extending all the way into 2008,’’ analysts led by Roy Ramos […]

In a presentation to analysts by Stephen Green, Chairman of HSBC, for the first time Green admitted that Household had been an essentially disastrous acquisition, that not all other diversifications had been successful, and that total shareholder return had underperformed peers. Household International is now called HSBC Finance, and HSBC previously said it […]

HSBC aims to tackle its problems in the United States, where it has scaled back its business after having to write off billions of dollars of bad debts on U.S. loans in the last year. HSBC Chairman Stephen Green said there were no plans to withdraw, but the bank also wouldn’t make a major […]

News from the U.K. this Thanksgiving day tells of how HSBC senior executives have been challenged over their proposed bonuses. Even though HSBC, “despite more than $20 billion (£9.7 billion) of provisions for credit and trading-related losses over the past two years”, possibly misled shareholders into believing that the executive bonus scheme was much […]

The final outcome of Shea vs Household was as follows, and is filed in Superior Court for the State of California, Case Number 00CC12585, published March 19, 2004. The Honorable Stephen J. Sundvold presided.

The lawsuit alleged that Household imposed certain finance charges, late fees, a overlimit fees between October 20, 1994 and March 18, 2004 […]

Layoffs continue due to restructuring within HSBC Finance as HFC and Beneficial Finance employees look for more information. A brief search of Google News tells very little. Aside from subprime losses, we learn instead that HSBC unveiled a climate change fund, that HSBC rewards customers for their patronage, and something about a global […]

Unfortunately some seem to think they can do and say whatever they want. One person even had the audacity to ask why a CitiFinancial employee was allowed to comment to HSBC employees relative to one article. Sorry, but that is not the way it works. We don’t mind offering a public forum, but […]

HSBC USA CEO Paul Lawrence took over from Sandy Derickson. While Derickson was a former Household International employee she was also unemployed when London headquaters made management changes. Some say Derickson was in over her head, while others point out that she was hired by Household after “running GE Auto Finance into the […]