Bobby Mehta has stepped down as CEO of HSBC North America Holdings and chairman and CEO of HSBC Finance Corporation (formerly Household International), with effect from February 15, 2007. He has also resigned as a group managing director, and from the boards of HSBC Bank USA, and other companies in the HSBC Group.
Sandy Derickson, head of HSBC’s US retail operations, has also stepped down, the Financial Times has reported.
The surprise moves are being viewed by onlookers as a decisive step by the bank’s international management to take a tighter grip on the North American unit and its problems.
HSBC’s subprime mortgage business in the US has been on the ropes since the collapse in the market for such home loans, which was triggered by rising interest rates and declining house prices in some parts of the US.
According to a statement from HSBC, Douglas Flint, group finance director of HSBC Holdings plc, has now become non-executive chairman of HSBC Finance Corporation.
