HSBC Sells U.S. Consumer, Homeowner Debt for $3.2 Billion

Gavin Finch & Howard Mustoe of Bloomberg wrote a great piece about HSBC divesting in the U.S. banking market. They plan on selling the mortgage servicing portfolio and branches in major markets.

HSBC Holdings Plc (HSBA), Europe’s biggest bank by assets, agreed to sell a portfolio of U.S. consumer loans for $3.2 billion in cash as it scales back its operations in the country.

The sale to a subprime lender backed by Fortress Investment Group LLC (FIG) and a mortgage investor managed by the private-equity firm is slated to be completed in the second quarter, London- based HSBC (5) said in a statement yesterday. Springleaf Finance Inc. will also buy HSBC’s loan-servicing facility in Kentucky, with completion expected in the fourth quarter, the bank said.

HSBC Chief Executive Officer Stuart Gulliver has closed or sold 47 businesses since he took the top job in 2011 as he focuses on markets where the bank is most profitable. The U.K. lender is cutting back in the U.S. after its 2003 purchase of Household International Inc. required it to set aside more than $65 billion for souring loans in the country.

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