Household HSBC Watch

We received this telling information in a note today: “I have an HFC second mortgage and a credit line which HSBC moved to Beneficial.” Is HSBC making Beneficial look better than HFC? Or does the statement mean that HSBC moved the person’s second mortgage and the person’s credit line (both of them) to Beneficial Finance? Obviously a second mortgage is a more risky subordinated position for HSBC. HSBC Finance, the owner of HFC and Beneficial, is losing money. HSBC is closing HFC and Beneficial Finance offices. We will watch carefully to see if there is a realignment between the two parts of HSBC Finance.