HSBC was elevated to the unenviable position of biggest U.S. subprime mortgage lender after buying Illinois-based Household International Inc. six years ago for $14 billion. It announced in March that it would shut the unit, renamed HSBC Finance, over the next five years.
HSBC said its U.S. business made a quarterly pretax profit for the first time in nearly three years because of lower loan impairment charges, marking a major step for the bank after losing tens of billions of dollars from subprime lending in its U.S. consumer finance division.
HSBC has fewer friends and loyal customers in England. HSBC is axeing nonprofitable branches, usually in small towns or villages and run part time.
In a news article today HSBC teamed up with the group Students In Free Enterprise. In the past HSBC started websites such as “Your Credit Counts”, and claimed to be aligned with financial literacy programs in the US. Whether HSBC discusses losses at HSBC Finance is doubtful.
A Chicago debt-collection law firm has been sued by HSBC Finance Corp. for more than $400,000 in missing funds that were supposed to be held in trust for the bank.