Household HSBC Watch

In a lesson plan, designed to teach about predatory and subprime lending, we asked this question of students in 2005: “What is the impact on a country’s economy if predatory lending is left unchecked?” Three years later the answer is clearly obvious. As of today the world has seen over $515 billion […]

When it comes to ignorance on the part of HSBC this fully researched and documented case is outstanding. A man in Texas reported: “HSBC Finance (Credit Card division) is routing a portion of their after hours support calls to my cell phone. The credit card holders belive I work for HSBC and […]

This is a perfect example of HSBC’s exportation of the Household International model of doing business. Credit card interest rates have been increased to as high as 50 percent in India. While proud of making a profit in developing nations HSBC is not alone. ICIC, Deutsche Bank, SBI and HSBC have either […]

With the United States in a recession the double-speak is interesting. Some call the recession of 2000-2001 a “mini-recession.” Now HSBC’s Douglas Flint has a “technical recession.” HSBC finance director Douglas Flint said: “The issue now is the US slowdown and whether it enters a technical recession, and what that does to […]

According to Maryland newspapers, HSBC North America Holdings this month will close its White Marsh operation — HSBC Finance Corp. — and lay off 450 employees. With Boscov’s closing its Glen Burnie, Owings Mills and White Marsh stories, 400 people will lose jobs. Boscov’s signed a contract with HSBC and HSBC managed the Boscov’s […]

HSBC is heavily exposed to credit card assets. In that light, it is similar to Capital One, which earlier this year slashed its earnings estimates by over 20 percent due to high default rates and building losses. We see potential for a negative impact to HSBC’s earnings from this exposure as well. HSBC credit […]

One fact everyone knows about HSBC Finance Corporation, a subprime division of HSBC, is the company will not modify or change anything willingly. When HSBC says they modified 11,900 sub-prime mortgages, valued at $1.9bn, that were due to reset to punitively high rates this year it was not done willingly. HSBC Finance has […]

HSBC can submit as many press releases about planting trees, green offices, and gifts for credit card holders as they desire. Did HSBC ever think that those cute articles are negated by real news? For example, this article is quite astonishing: “Security-incident prone bank HSBC has admitted losing a server containing transaction […]

HSBC and activist investor organizaiton Knight-Vinke have been challenging each other for quite some time. This past weekend Knight-Vinke said “‘The dismissive comments in your letter conveyed a worrying degree of complacency. I hope this is just a matter of tone and not of substance.” The same United States division of HSBC […]

Warren Buffett in his latest letter to shareholders says there are three kinds of acquisitions - The Great, The Good and The Gruesome. HSBC’s landmark purchase of the US sub-prime lender Household International in 2003 now looks firmly parked in the third category.

With laudable candor, HSBC has laid out just how badly that business, […]