In the US Banker section of American Banker, we spotted an interesting line: “The concern was, ‘How much subprime do you do? What is your risk of having what Household (International) had?’” It was a question asked of Richard Davis, CEO of U.S. Bancorp, in February 2007. HSBC bought Household in […]
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 […]
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 […]
A former employee of HSBC in Florida sent us this opinion: “Ex-employee from HSBC, parent company of HFC/Beneficial collections team. First I would like to straighten some facts about prior to my bashing. This company is a pay for performance company and each employee has the bonus options. The better you […]
Adjustable rates will reset this summer and fall. The timing reflects the height of subprime lending in the summers of 2005 and 2006, when many borrowers secured loans scheduled to adjust in two or three years. For many, an adjustment means their interest rate will go up two to three percentage points. HSBC […]
While I could literally fill up this entire website with a diatribe about employment issues at HSBC, I am going to try and focus on one area for now- my experience with their corrective action program. Just as HSBC bullies and pressures their customers into taking high interest and fee loans coupled with insanely […]
AK in Oregon sent this op-ed piece. We are publishing it here instead of in our complaints blog:
“HSBC- predatory lenders who slam insurance, offer over market rates and fees, and treat employees with disrespect.
When I started working at HFC I was just out of college. I was excited to have a job […]
Knight Vinke, the activist investor, launched a fresh attack on HSBC yesterday, accusing Europe’s biggest bank of flattering its US sub-prime losses by failing to write down $30 billion (£15 billion) worth of mortgage assets. Knight Vinke may have a point, as HSBC claims to have US losses under control, while almost every other […]
UBS tried to explain subprime losses in a 50 page report. One glaring fact that stands out is a huge risk for HSBC, since HSBC did little or nothing to change HSBC Finance. UBS Said in part: “… its compensation structure for employees provided “insufficient incentives to protect the UBS franchise long-term.”” […]
This quote, which is on the public record, is taken from Alan Greenspan’s testimony before the Committee on Financial Services, U.S. House of Representatives, July 20, 2005:
“The apparent froth in housing markets appears to have interacted with evolving practices in mortgage markets. The increase in the prevalence of interest-only loans and the introduction of more-exotic […]
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An open letter to HSBC, Knight Vinke and Stephen Green
We monitor customer trends for possible violations of Regulation Z and other possible illegal actions.
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