HSBC has been added to the list of defendants in another class action suit. Although class action suits are nothing new for HSBC - in part thanks to HSBC Finance - January 25th was when HSBC was added to a new suit. New York state officials are suing a total of 26 banks and two accounting firms that did business with Countrywide Financial Corp., saying the companies failed to ensure that Countrywide failed to be honest with investors. Some say this may be a fact finding event for those who want to look at HSBC.

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250 HSBC Korea union members and Korean Federation of Clerical and Financial Labour Unions (KFCLU) leaders went on lunchtime picketing on 22 and 23 January. They have been calling for negotiation with management since 26 December. Union members expressed their discontent with management after it unilaterally implemented an incentive system and wage increase without consulting the union. The union has called for negotiation with management from 26 December but, so far, no negotiation has taken place.

Citigroup Inc. is abandoning a push to open as many as 100 branches a year in the U.S., concluding it had little chance to dislodge entrenched rivals in several markets. Barely two years after introducing the strategy, executives at New York based Citigroup now intend to sell or close some of the newest Citigroup locations. HSBC has the same strategy to expand in the United States but is hindered by brand recognition. HSBC’s HFC and Beneficial Finance are recognized as high-interest lenders associated with tax refund loans, predatory lending, and Household International. Word on the street is that HSBC will rename some U.S. operations. Will branch expansion continue for HSBC?

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Many lenders went out of business or declared bankruptcy, but major losses and write-downs from subprime continue. Lawsuits are beginning, as Ohio’s Attorney General tries to show that Freddie Mac duped investors by not revealing how risky the subprime market was. The risk to other lenders is high if a precedent is set. HSBC’s purchase of Household International may put HSBC at greater risk than other lenders. Here is why:

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If Arab nations have money and the United States is no longer profitable just refocus. If Islamic finance seems attractive in the U.K. and U.S. just focus on your new new friends. That is the business model for HSBC - the Hong Kong Shanghai Bank, headquartered in London and doing business in the United States and United Kingdom. Somehow the words just do not ring true after the subprime debacle. HSBC owns former predatory lender Household International. HSBC also made few changes within the Household system, now called HSBC Finance. What about HSBC’s old friends, like mainstream Americans? You won’t like it:

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