Hong Kong's government. By 1902, HSBC was the most influential bank in Asia.
As the 20th century began, HSBC began expanding its financial services to include the financing of major projects through the East, including railroad construction. After World War I, business flourished. During World War II, however, control of the bank had to be turned over to the London offices because the majority of the HSBC's staff in the East became prisoners of war.
After World War II, HSBC's power returned to Hong Kong, and the company saw the need to grow. HSBC acquired the Mercantile Bank (1959), a majority interest in Hang Seng Limited (1965), and The British Bank of the Middle East (1959). A California branch of the business was also established in 1955.
In the later half of the 20th century, HSBC focused on expanding into additional markets and spreading its global reach. In the United States, the bank purchased Marine Midland Bank in 1987 and in Europe created an agreement with Marine Midland to establish a reciprocal relationship between the two banks. In 1992, HSBC became the full owner of Marine Midland Banks all over the world and established itself as one of the largest banking institutions on the globe.
During the 1990's, the company continued to expand into South America and to add new members, such as the Republic New York Corporation (1999), to the group.
Throughout the 21st century, this trend of increasing growth has continued. In 2000, HSBC purchased Credit Commercial de France (CCF) for $11 billion which gave them 650 branches in the country. Within the next two years, the company was purchasing banks in Australia, Turkey, and Mexico.
Because HBSC is concerned about the environment, the organization became the first bank to go carbon neutral.
HSBC & Credit Cards
The HSBC Finance Corporation, a subsidiary of HSBC, is the fifth largest issuer of VISA and Mastercard credit cards in the United States. HSBC also offers credit cards in over 40 countries, including New Zealand, Egypt, Taiwan, and Brazil.
This arm of HSBC was formed when they purchased Household International in 2003. Just one year before the purchase, Household International had settled claims against them by the attorneys general in 46 states for predatory lending practices for almost $500 million. After the acquisition, Household International was combined with other aspects of HSBC's personal finance division and spun off into a subsidiary.
In 2005, HSBC Finance Corporation purchased Metris Companies, another issuer of credit cards. One of their cards is the AmericanDream Mastercard. For every $1 a user charges to the card, he or she is entered into a sweepstakes to earn a jackpot. This purchase greatly increased the company's presence in the credit card industry.
HSBC Finance is also the third-largest issuer of merchant cards in the United States. They provide credit cards for more than 70 different retailers, including upscale merchants like Neiman Marcus and Saks Fifth Avenue.
Additionally, HSBC issues cards under a variety of brand names, including the GM Card, HSBC Mastercard, Direct Merchants, and Household.
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