Here is positive proof that a person can be successful after running a subprime operation for HSBC while losing billions of dollars. Originally with Household International, which was charged with predatory lending and later purchased by HSBC, many thought Siddarth (you can call me Bobby) Mehta was in over his head. Mehta was summarily dismissed by HSBC. Others call that ‘fired.’
TransUnion’s chief executive officer (CEO) and president, Harry Gambill, will begin serving in a new capacity with the company as vice chairman of its board of directors. Siddharth N. “Bobby” Mehta will assume the role of TransUnion’s new CEO and president. Many ask if there is a relationship between predator, subprime, and credit reporting. Other don’t even need to ask.
Maybe Bobby can clean up all the false and misleading credit reporting errors sent from his original unit, now called HSBC Finance Corporation. Others say Bobby is in a tough position because of Sarbanes – Oxley and his knowledge of HSBC Finance. Many thought Bobby was out of his league at HSBC North America and was already circling the drain when he was dismissed.
But here is the catch. In May 2006, as part of a plan to address the growing needs of subprime mortgage lenders, Chicago-based financial services firm TransUnion has launched its consumer finance division. “Our many years of experience in the real estate settlement services industry has led to an understanding that the processes and products needed to underwrite subprime loans are unique,” said Richard Hogendorf, group vice president of TransUnion Real Estate Service’s Consumer Finance division.
Well, if you never ran Household International (who would want to) but did oversee subprime debacles that echoed all around the world, what are the qualifications to become CEO of TransUnion? Wait to see if TransUnion buys HSBC Finance Corporation at a very devalued rate, merging credit reporting, subprime, and public records all under one roof. What a frightening thought.