HSBC Announces Changes To U.S. Leadership Team; Moves Capitalize on Strength of Senior Management Talent.

PROSPECT HEIGHTS, Ill. -- HSBC North America Holdings Inc. today announced changes to the company's senior management team in the U.S. Sandy Derickson, Vice Chairman, HSBC Finance Corporation becomes President and CEO, HSBC Bank USA, N.A. and HSBC USA, Inc., effective January 1, 2007, replacing Martin Glynn, who will retire December 31, 2006. Brendan McDonagh, Chief Operating Officer (COO), HSBC Bank USA will assume the title of Group Executive, HSBC Finance Corporation and HSBC North America Holdings Inc., beginning September 1, 2006, and will remain in his role as COO of HSBC Bank USA until December 1, 2006.

"HSBC is committed to growing the organization and leveraging its best talent to do so," said Bobby Mehta, Chief Executive Officer, HSBC North America Holdings Inc. "Collaboration is integral to our culture as an organization here and around the world. Our ability to share and maximize the talent of leaders like Sandy and Brendan further underscores our strength in cross-functional talent utilization."

"We want to take this opportunity to extend our gratitude to Martin Glynn and recognize his leadership and key contributions to HSBC over the past 24 years," added Mehta. "Under Martin's leadership, the Bank experienced significant positive momentum with respect to our brand, achieved a year-over-year core deposit growth rate of over 30% and implemented a cohesive organic growth strategy."

Derickson, who serves as Vice Chairman, HSBC Finance Corporation, joined then Household International in September of 2000 as CEO of its retail services business, after a 24-year career at GE. She will assume the title of President and CEO designate of the Bank on September 1, 2006, and will work closely with Martin Glynn to transition into her new role. In addition to overseeing the U.S. Bank, Derickson will be responsible for HSBC Bank Canada and the Canadian consumer finance business. She will continue to have responsibility for HSBC Mortgage Corporation (USA), Inc., the Bank's mortgage subsidiary.

In her six years with HSBC, Derickson has established a solid reputation as an agent for change within the organization with an emphasis on strategic employee recruitment and development, and the introduction of Six Sigma to HSBC Finance Corporation. Derickson is heralded as a business builder and is widely-recognized for her ability to forge creative alliances with corporate clients across multiple business lines.

In his new role as Group Executive, HSBC Finance Corporation and HSBC North America Holdings Inc., McDonagh will oversee HSBC's Taxpayer Financial Services and Insurance Services businesses, its Auto Finance business, as well as its HFC U.K. consumer finance operations. Additionally, HSBC's Corporate Marketing unit will report to him.

An International Manager for the HSBC Group for more than 25 years, McDonagh began his career with the organization in 1979, and has completed assignments in seven countries, including the U.K., Hong Kong and Japan. He has acted as the U.S. Bank's Chief Operating Officer since October of 2004 and is credited with overseeing significant expansion of the Bank's brand and U.S. retail network.

Additional senior management changes announced today included Tom Detelich, Group Executive, Consumer Lending, HSBC Finance Corporation, who will maintain that role and also take on the leadership of HSBC Mortgage Services, which is comprised of legacy Household Mortgage Services and Decision One businesses. Detelich, who has managed the HFC and Beneficial mortgage lending operations, has been the driving force behind the institution of industry-leading best practices for HSBC's consumer lending business.

Paul Lawrence will assume the role of Head of Corporate Investments Banking & Markets (CIBM), North America, having held the title of Chief Executive Officer, HSBC Singapore. Lawrence joined HSBC in 1982 and has held numerous senior positions in Asia and the UK, serving as Chief Executive Officer in the Philippines before being appointed CEO in Singapore in 2002 and Group General Manager in 2005. This posting marks a return to the US for him as he also spent two years as a credit manager at the then Marine Midland Bank in the US early in his career. Lawrence will have a reporting line to Stuart Gulliver, Chief Executive, CIBM and Investments and a reporting line to Sandy Derickson for HSBC Bank USA.

"The strength and depth of HSBC's management team is a hallmark of our global organization," added Mehta. "These management changes will serve to further knit together the institutional knowledge of our people and redeploy it to further serve our customers and the company overall."

About HSBC North America Holdings Inc.

HSBC - North America comprises all of HSBC's U.S. and Canadian businesses, including the former Household International businesses. The company's businesses serve nearly 60 million customers in five key areas: personal financial services, consumer finance, commercial banking, private banking and corporate investment banking and markets. Financial products and services are offered under the HSBC, HFC and Beneficial brands. For more information, visit www.hsbcusa.com.

NOTE: Executive biographies available upon request.