With no end in sight to the turbulence in the housing and financial markets, the chairman of the Federal Reserve Ben Bernanke said on Tuesday morning that it would issue new lending rules next week to restrict exotic mortgages and high-cost loans for people with weak credit. We want to know what the Fed is going to do about onerous terms and conditions, and classic predatory loans that currently exist. The question revolves around HSBC Finance and their Beneficial Finance and HFC loans. Many of these loans cannot be paid off under the terms and conditions of the loan. I am certain that HSBC’s lawyers are defining the terms “exotic” and “high-cost” in a manner that benefits HSBC.
Discounting the fact that HSBC bought former predatory lender Household International in 2003, the loans still exist and still have high balances which are now on HSBC’s balance sheet. In all probability some of these loans are wrtten off and others are now financed by HSBC USA. Does HSBC regard HFC and Beneficial loans as free money, as long as the borrower is still paying? Time will tell, but for now it is back to the dictionary for HSBC’s lawyers. If you can’t beat Ben Bernanke the you must “out-define” him. To hell with the American economy.
Related posts:
