Posts Tagged ‘foreclosure’
HSBC plans to open branches for the wealthy in Japan. One Google search by intelligent wealthy Japanese will foul HSBC plans instead. “This is another case of HSBC ignoring Household International and HSBC Finance Corporation” said one analyst close to the matter. “Wealthy Japanese customers rely on trust and reputation, but as the subprime mess spreads around the world HSBC remains one of the largest buyers of subprime loans. HSBC will be tied to foreclosures, thus negating efforts in Japan” said Household – HSBC Watch consumer advocates.
Using “payday loans” as a business model, HFC and Beneficial Finance once used the model for second mortgages. Although it may not be the best deal for the borrower it is a sweet deal for the lender. American homeowners who never considered a loan from the shady underworld of “pawn your title” and “payday loans” did not see HFC and Beneficial for what they were – the same business model waiting to spring a trap on unsuspecting consumers. Like the hawkers on the midway at the fair, looks were deceiving.
Why did the subprime money pipeline shut down? And which bank was buying mortgages from brokers and lenders? HSBC of course. Subprime and second mortgages were to HSBC like Household International was to predatory lending – an easy ride to profits. Or so they thought. Second mortgages? Sorry, but HSBC has little or no security interest when a home goes to foreclosure.
When HSBC lost money due to HSBC Finance the bank worked very hard to turn a profit elsewhere. Developing nations held the wolves at bay as those opposed to HSBC’s Household International remain posed to file suit if the bank turned shareholder profits into a loss. Others may still file suit claiming $10.6 billion is a huge amount to swallow.
Many other countries have not gotten down to the dirty task of lending money for housing to people who can’t afford it and then financially leveraging the loans to create billions in false value. That’s what the U.S. has done and it has the potential to impact people around the world. The U.S. subprime market has been used in numerous fund portfolios.