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 suffer. “Capital One is the best proxy for HSBC Finance Corp.’s credit card business, the single biggest product contributor to HSBC Finance revenue and profit”, ABN analysts wrote in an e-mail to clients.

Many people are starting to realise U.S. government help for subprime borrowers will have little effect, with some saying the plan will only help those who had no business buying a home in the first place. Perhaps an oversimplification, one must remember that somebody was willing to offer the loan, often with a sales pitch. As cash strapped borrowers are alienated by their mortgage company they may also walk away from their credit card debt in an effort to start over.

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