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 disaster, HSBC tried the same with other subprime lenders. HSBC bought entire companies, plus subprime packages from other banks. Unfortunately for HSBC the wings fell off and the idea came crashing to the ground.
HSBC probably cannot sell Household, now called HSBC Finance Corporation. The value of the dollar combined with a fire sale by HSBC would only anger investors even more. Of course HSBC could do anything they desire, which has been demonstrated over and over in the past.
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