European bank HSBC announced yesterday that it will no longer write consumer loans in the U.S., and that it is seeking about $18 billion in new capital from investors through a rights offering. As a result of the restructuring, HSBC will shut down a majority of its finance branches and eliminate 6,100 jobs. The firm conceded that its attempt to take advantage of the subprime mortgage market in the U.S. via the acquisition of Household International was a failure and source of significant losses.
See "HSBC Seeks $18 Billion in Capital and Cuts 6,100 Jobs", Julia Werdigier, The New York Times, March 2, 2009