Household HSBC Watch

China and India have been growing at steady paces, but some have pointed to a possible bubble. Already, China has shown its weakness as pretax profit for HSBC in China fell 41% to $907 million. Meanwhile, shares in Korea Exchange Bank, HSBC’s newest target, have fallen as much as 12%. For now, HSBC remains devoted to an Asian expansion, although HSBC forgot to renew the bank’s application for KEB. Instead cocky HSBC decided to set a deadline for South Korea. It was promptly ignored by South Korean regulators.

HSBC is clearly trying to forget the bank’s failure in the United States. HSBC will forever be thought of in terms of Household International, high interest rates, predatory lending, and consumer complaints. For that honour HSBC paid for Household International at least three times over.

What is HSBC really trying to do? HSBC wants to become the bank of choice for Islamic finance without advertising to the world that HSBC demands a link to a way of life that still means war in Iraq, discontent with Iran, and high oil and gasoline prices. HSBC cannot come right out and say that rich Arab nations should bank with HSBC because that is the way wants it to be. HSBC cannot set a deadline like the bank did with South Korea.

For instance, in 2006 Sabafone Telecommunications of Yemen and HSBC bank signed an Islamic financing agreement for US$ 50 million (Murabaha) in order to expand the services of the telecommunications company. Remember, if you will, that on October 12, 2000, USS Cole was attacked in Yemen.

In Afghanistan the bombing was a “great victory for bin Laden. Al-Qaeda camps … filled with new recruits, and contributors from the Gulf States arrived carrying Samsonite suitcases filled with petrodollars.”

Both the Clinton Administration and the Bush Administration have been criticized for failing to respond militarily to the attack on the USS Cole before September 11, 2001. The 9-11 Commission Report cites one source who said in February 2001, “[bin Laden] complained frequently that the United States had not yet attacked [in response to the Cole]… Bin Ladin wanted the United States to attack, and if it did not he would launch something bigger.”

HSBC was reluctant to leave Iran but sanctions forced the bank’s hand. HSBC continues to disregard our own American servicemembers, denying reduced interest rate benefits under the Soldiers and Sailor relief act. In fact HSBC told the US government that the act was outdated and should be modifed to their specifications. The Bush administration caved in and modified the law, even while American and coalition fighting forces gave their lives to help HSBC get back in to Iraq.

The last amendments were added in 2003 through the Servicemember’s Civil Relief Act. Remember how the war with Iraq was going back in 2003? This is another example of a travesty of the Bush administration and HSBC, and the timing could not have been worse.

A combination of the worst president the United States ever had and the worst subprime lender the United States ever had shows how money, influence, and lobbying gets some people what they want while other people are dying.