HSBC sends executives to US to solve mortgage woe

9 February 2007

HSBC Holdings is to send two executives to the US after loan impairment charges hit $10.5 billion in 2006.

The bank put the increases in charges - around 20 per cent above estimates - down to "the impact of slowing house price growth" reflecting "accelerated delinquency trends across the US sub-prime mortgage market".

In response, the Wall Street Journal reports that two executives will be sent to Chicago-based HSBC Finance, as doubts were raised over risk management controls.

Chris Spooner, previous head of tax and planning, will take on the role of chief financial officer for HSBC North America Holdings, succeeding Simon Penney, who is retiring.

HSBC Bank USA chief operating officer Brendan McDonagh will also move into the role of HSBC Finance chief operating officer.

The bank's chief executive Michael Geoghegan is also expected to take a larger role in the firm's US mortgage business.

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