Household HSBC Watch

Not too long ago a finance company like CitiFinancial, Beneficial Finance, or HFC could loan to people with less than perfect credit. Some loans would make money. Then greedy bankers and predatory brokers exploded the practice, and subprime was born. It changed the dictionary. Therefore it is proper to say that the HSBC experience in Georgia (the country, not the state) has been subprime. It only took seven weeks for upbeat smiling HSBC staff to wonder about their own life expectancy. Russian bombs rained downwhile HSBC decided to hold fast. If subprime detriorated toward life threatening HSBC would leave. HSBC opened its doors as usual for most of the week, although there was an enforced bank holiday on Tuesday, the better to enable Georgians to rally in a show of support for President Saakashvili.

Thats how it is when you give up on your own country. As business detriorates for HSBC in the United Kingdom and the United States the losses must be offset by profits from somewhere in the world. HSBC has not been particularly targeted as a symbol of the West, which many Georgians believe betrayed them by not responding more immediately and more emphatically to Russian aggression. HSBC may not be targeted, but perhaps Georgians will boycott HSBC. Perhaps their experience has been subprime too. Seven weeks in business does not tell us much.

Beware of HSBC in war zones. For instance, take a look at Iraq. American and British soldiers are part of the coalition, but they must worry about reposessions and foreclosures back at home. United States military servicemembers were targeted by HSBC as the bank demanded changes to the Civil Relief Act. No reduced interest rates just for being deployed, according to HSBC, and you must be getting shot at to get a reduced rate. The list of U.S. military abuses by HSBC goes on and on. We do not know enough about the British military, but if you have complaints and examples please send them to us.

When that is the way our military is treated as we help secure the country in which HSBC wants to do business, I can imagine what HSBC will do when they don’t need us any more. In Georgia HSBC did not have enough time to subprime the Georgian military but if there is a will there is a way.