Although the credit quality problems at HSBC Finance appear to have tempered management’s enthusiasm for cheap acquisitions of distressed assets, HSBC wasted no time in complaining about wording in the US government $700 Billion bailout. The issue was the wording of “Headquarters in the United States.” As lawmakers and Financial chiefs worked on a Sunday afternoon, lobbying money and favors found a way into the bailout. That in itself is a major problem. However, by the end of the day HSBC got their way, and foreign banks were included in the bailout. Good for homeowners but bad for the dollar, the basic principle is unacceptable.
$700 Billion (USD) of taxpayer’s money with part of it going to UK-based Hong Kong Shanghai Bank is unacceptable. The fact that HSBC bought and facilitated mortgages through what was once known as predatory lender Household International should not be lost in the begging and plea for inclusion in the bailout. The United States already sprayed dollars around the world last week, in an effort to prop up the dollar. When will the madness end?
Suffice it to say this is our first look at politics, back office money, lobbying money, and favoritism behind the proposed mortgage US government initiative to buy $700 billion of bad-mortgage investments.
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