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HSBC is cutting back in the U.S. after its 2003 purchase of Household International Inc. required it to set aside more than $65 billion for bad loans

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HSBC puts look like Bear and Lehman says analyst

Options trading in HSBC looks bad. Really bad, according to Jon Najarian who compares it to Bear and Lehmanís options activity before these big banks stumbled. ďItís falling off a cliff,Ē he says. ďThey are buying puts at the 50-strike, 45-strike, 40-strike. Iíll get real scared if they start buying the 20-puts because thatís the kind of pattern we saw in Lehman and Bear. They (institutional investors) are buying 50% out of the money puts.Ē Najarian urges investors to keep an eye out.

From our vantage point HSBC has little news of importance as of late. There will be no magic after Obama takes office as President of the United States. In fact 2009 looks to be worse than 2008, leaving HSBC without a viable plan to offset losses in the U.S. and U.K.

Posted By Timothy Blake

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UPDATE NOTE: HSBC car loans were sold to Santander USA in 2010 :: Most HSBC credit cards became Capital One credit cards in 2012 :: HSBC horrible predatory home mortgages are in run-off