HSBC-Household Deal Clears 2 Hurdles

HSBC's $14 billion pending acquisition of subprime giant Household International, Prospects Heights, Ill., has cleared two more hurdles.The Justice Department said Tuesday that it had ended its investigation into the deal without taking any action, which means the federal government found no antitrust problems with the foreign bank (HSBC) buying the U.S. lender. In addition, on Monday all 50 states plus the District of Columbia ratified Household's record $484 million predatory lending settlement. A statement released by regulators in Washington state called the settlement "the largest direct restitution amount ever in a state or federal consumer case." At midday Tuesday, Household's shares were trading down slightly, at $28.44. There has been speculation among some investment bankers that the deal might be in trouble (see the Dec. 16 issue of National Mortgage News). Even though the sale appears to be moving along, Bear Stearns downgraded Household on Monday to "peer perform" from "outperform."