HSBC said third-quarter profit rose even as it set aside $4.3 billion to cover bad loans in the U.S. and forecast “further deterioration.” The U.S. unit “declined markedly” because of consumer and corporate loan defaults. The $4.3 billion total was more than analysts estimated, thinking HSBC would only lose about $3.7 billion. What’s a few million either way? Further detrioration is an interesting term as well. It means that the economy is getting worse, and HSBC Finance has a target audience that feels the effects more so than others. Investors are preventing some lenders from modifying mortgages, but it is unclear how HSBC is effected in that regard.

The bleeding began in early 2007 for HSBC. Since then other profitable parts of HSBC worldwide have propped up HSBC Finance and HSBC USA. Did HSBC management run it into the ground, or did Household International fail long before HSBC bought the company? Either way, losses have continued for so long that JPMorgan analysts said the business is not viable.