Household HSBC Watch

Once upon a time — back before the crying, wailing, and sobs of subprime lending — HSBC plc said the bank did not spend money on lobbying and attempts to influence legislation. Certainly William F. Aldinger spent money to do so in the United States, as his predaotry little company (Household International) was purchased by HSBC in London. As king of American operations Aldinger moved to the throne at HSBC USA, where he continued to spend money on lobbying efforts. London gave in on this issue too, once again giving up some ground to be “Americanized.” HSBC spent $660,000 in first quarter lobbying in 2008. Here is what HSBC spent money on:

- lobbied on legislation that would allow bankruptcy judges to alter mortgage loans for strapped consumers, a bill with strong support among consumer groups but heavily opposed by the mortgage lending industry

- other mortgage reform proposals, as well as legislation that would require credit card companies to negotiate the fees they charge merchants directly with them, rather than setting the rates unilaterally

With that kind of lobbying by HSBC you can bet your consumer rights and bargaining position will be diminished in the future. Lobbying on mortgage lending and credit card rules means HSBC is not looking out for you. Most Americans think judges follow the letter and intent of the law, not the smell of money. We shall see.