Wednesday, March 4, 2009

HSBC to scale back US consumer finance arm


Pasted by Lisa Crowley

HONG KONG (AFP) – HSBC on Monday will announce plans to scale back its US consumer finance operations as it launches a 17 billion US dollar rights issues to boost its capital base, the Financial Times reported.

The London-based bank, which will release its annual results at 0800 GMT Monday, is expected to say it will further downsize its US-based credit card and mortgage lender, the newspaper cited unnamed sources as saying.

The US consumer finance arm, HSBC Finance Corporation, has stopped writing new subprime mortgages -- the source of mounting losses for the division -- and closed its car loan business in the United States.


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