Household HSBC Watch

Analysts say that HSBC Holdings PLC (HBC) will again show large losses in the U.S., although these should be absorbed by stellar performance in Asia. Stellar, absolutely stellar. Except in the United States. As gasoline prices set an all-time record high many customers of HSBC Finance are finding it difficult to cope with loans. Often, by the selling agent’s own admissions, customers qualified for prime rate loans but were sold other products instead. Insurance against job loss, health problems, and whatever else could be packaged into the loan often compound the problem.

How will HSBC react in the US? Some say it will be a token effort, others say more job cuts will follow, and CalPers set a deadline for HSBC to do something about the bank’s purchase of Household International. That deadline is near. Activist investor Knight Vinke is also looking at HSBC’s performance.