Those poor Brits. Not only did they lose the Colonies to that rabble-rouser George Washington, but one of their biggest banks, HSBC, made a $14 billion mistake back in 2003 by purchasing then subprime giant Household Finance. In short, the Household deal blew a financial hole in the bank’s balance sheet, and ruined the reputation of HSBC’s mostly successful ‘A’ paper unit, HSBC Mortgage of Depew, N.Y. (For years, HSBC’s predecessor company, Marine Midland Mortgage was a solid performer.) So, what has HSBC done to repair the damage at HSBC Mortgage? It put the unit up for sale and found no takers. I would assume the next step is for HSBC Bank USA to outsource its origination function to some third party like PHH Mortgage…
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