Household HSBC Watch

As HSBC continues to hemorage red ink in the United States some are asking if HSBC will replace Chairman Stephen Green with CEO Michael Geoghegan. Under pressure from activists at Knight Vinke and others, it appears as though HSBC will make more changes. Some ask if ousting Green will be enough. Unfortunately both individuals inhereted Household International after Sir John Bond and William F. Aldinger III retired from HSBC. Through the guidance of Aldinger and Bond HSBC bought predatory lender Household International, changed the name to HSBC Finance, and continued the operation until HSBC Finance became the biggest subprime lender in the United States.

Changes came slowly in the U.S. as HSBC reported losses in excess of $14 billion (USD). Siddarth (Bobby) Mehta and Sandra Derickson were removed, although some claim these two former Household International employees were irrelevent. Reports at the time said Michael Geoghegan, the embattled chief executive of HSBC, tried to show that changes were underway.

Perhaps Stephen Green will replace Michael Geoghegan instead? After all, Geoghegan said heads would roll as he tried to get things under control, but few heads rolled and the situation is getting worse instead of better. HSBC cannot look to HSBC Finance for leadship, there are few options at HSBC USA, and Greeen alluded to the fact that Household International (HSBC Finance Corporation) had been a disaster. Many lost their jobs at the top of large financial institutions in recent months, with Zoe Cruz, co-president at Morgan-Stanley being the last as of this writing. There will certainly be more.