Household HSBC Watch

Morgan Stanley cut its price target for HSBC Holdings plc shares traded in Hong Kong to HK$115 each from HK$131 on Thursday. Although HSBC would like everyone to believe U.S. subprime problems will not effect the overall bottom line apparently some analysts liken HSBC’s problems to what happened at Bear Sterns. The move followed a price target cut this week for HSBC’s London-traded shares by a Morgan Stanley analyst in London. Risks appear to be rising for HSBC.

Many believe HSBC’s problems come from HSBC Finance, formerly Household International. In 1999, Household International purchased Decision One Mortgage and in March 2003, Household was purchased by the HSBC Group. New problems associated with HSBC’s credit card operation have investors and analysts concerned. Many believe credit card accounts will also go bad.

Consumer advocates at Household - HSBC Watch are compiling an annual report of HSBC complaints received on a state-by-state basis. “Many people said they filed a copy of their complaint with their state attorney general. We will publish and file the overall findings soon, focusing on trends that will be of importance to federal and state regulators” said the group.