Alex Hungate said: “I want to help HSBC grow by maintaining a relentless focus on the needs of its customers. In this role, with its combination of global leadership of the Personal Financial Services business plus the marketing function, I want to ensure that our services always deliver on the powerful promise of the HSBC brand.”
Recent problems in the subprime sector spread around the world very quickly. Then the problems spread to Alt-A mortgages. Cash strapped borrowers with second mortgages and adjustable rate mortgages caught the attention of the world. By the morning of August 9, 2007, something else caught the attention of investors around the world. Questioning whether people can pay their credit card bills, investors are looking at asset-backed securities. Reports from Household – HSBC Watch show an alarming pattern. Unwarranted late fees, slow payment processing, and customer complaints beg investors to ask if HSBC Finance Corporation is artificially covering losses in asset-backed securities.
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.
The Guardian reported on Sunday, one day before HSBC is due to release half-year results , that HSBC’s unsecured portfolio is experiencing bad debt. Analysts imply that subprime mortgage blues have spread to other parts of HSBC. Antony Broadbent, banking analyst at Sanford Bernstein, expects the bank to warn that there has been an increase in bad debts in its unsecured lending book.
In Qatar HSBC held a savings day for its ‘Headstart’ account holders. The grand prize of an Acer computer with an LCD monitor and printer was won by 10-month-old Marrey Trixie. Headstart accounts are available to all children up to 18. Meanwhile in the United States there was little joy as customers were rewarded with $39 late fees. Even when payments were made two weeks early HSBC claimed they were late.