HSBC will be cutting back its US consumer finance operations, the U.K. bank will announce on Monday, according to a report.
HSBCwill say that it is further shrinking HSBC Finance Corp, writing off much of the goodwill on its balance sheet associated with the business, the Financial Times reported Sunday.
The U.S. subprime lending operations would not be taking on new business, people familiar with the matter told FT. The unit would still issue credit card people with poor or patchy credit histories, the report stated.
Other media reports have indicated that tomorrow the firm may seek to raise as much as 12 billion pounds in capital through a rights offer to bolster its balance sheet during the current financial crisis.
Trading in HSBC shares was suspended in Hong Kong for Monday's session, Marketwatch reported.