The U.K. bank bought Household International, the U.S. subprime mortgage lender, in 2003. Household was meant to give HSBC not only a good stream of earnings uncorrelated with its European and Asian arms, but also sophisticated credit assessment technology that HSBC could use to grow lending to riskier customers in emerging markets. HSBC’s long U.S. mortgage nightmare is largely over, but the ending came at a cost. Instead,...

Source: Wall Street Journal June 17, 2016 15:54 UTC