Household HSBC Watch

A large Califronia pension fund has put more pressure on HSBC, setting a deadline for change. Christy Wood, Calpers’ head of global equities, told The Sunday Times it wants HSBC to reveal detailed plans to refocus the group, address share-price underperformance and set a series of testing financial targets. “We want to see […]

Rumors abound about HSBC and HSBC Auto Finance, a subsidiary of HSBC Finance. This is another division that was part of Household International, and thus called HSBC Auto. The main complaint about HSBC Auto concerns lien releases, or the lack of them. It was a problem when Household International owned the […]

SIVs were unable to finance themselves as subprime losses prompted investors to retreat from all but the safest of securities. Three SIVs have defaulted and others are being bailed out by their sponsors. The world’s 30 SIVs have about $300 billion of assets. SIVs sell short-term debt and invest the proceeds in higher-yielding securities.

Citigroup […]

It seems HSBC Finance has debited customers accounts more than once - up to three times according to some customers. HSBC Finance, formerly predatory lender Household International, attributed the problem to a computer glitch. The explanations says little, but some customers are saying a lot. One customer said he went online to […]

HSBC Plc once said it does not lobby for change, but Household International certainly did. Even after HSBC bought Household International the spending continued. In 2005 total lobbying expenditures were $2,780,000. Thanks to Open Secrets we also discovered that lobbying for HSBC North America increased to $3,760,000 in 2006. This link […]

According to one article from the UK banks are putting pressure on customers to solve their “debt problems” but the solution may be worse than the problem. HSBC learned from the US subprime problem, as loan officers told customers they could refinance into a better loan in six months or a year. Look […]

Delta Financial Corp., the Woodbury-based subprime mortgage lender, filed for bankruptcy Monday, almost two weeks after announcing it would stop originating loans and file for court protection. Included in Delta’s list of its top creditors were subsidiaries of HSBC, KPMG and Deutsche Bank — all multinational banks that have lost hundreds of millions of […]

HSBC’s purchase of Household International was called a disaster. Other quotes included “total collapse of lending standards” at Household International. HSBC’s belief that its own lower funding costs would enable it to make a lot more money out of the Household International loans. Not realizing the acquisition would become a […]

HSBC’s mortgage-related troubles may not be over, however. Goldman Sachs Group Inc. analyst Roy Ramos, wrote on November 24 that the bank may have to write down an additional $12 billion at its Household International Inc. unit. The bigger the banking institution, the bigger the clean up (excerpt). HSBC’s credit card business may also […]

The annual report to State Attorney’s General has been published in our blog so our readers can see a breakdown of complaints on a state by state basis. It is in our complaints blog - a fitting home for this annual report. The report was mailed to the National Association of Attorneys General […]