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

HSBC North America Holdings Inc. today announced changesto 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. BrendanMcDonagh, Chief Operating Officer (COO), HSBC Bank USA will assume thetitle of Group Executive, HSBC Finance Corporation and HSBC NorthAmerica Holdings Inc., beginning September 1, 2006, and will remain inhis role as COO of HSBC Bank USA until December 1, 2006.

"HSBC is committed to growing the organization and leveraging itsbest talent to do so," said Bobby Mehta, Chief Executive Officer, HSBCNorth America Holdings Inc. "Collaboration is integral to our cultureas an organization here and around the world. Our ability to share andmaximize the talent of leaders like Sandy and Brendan furtherunderscores our strength in cross-functional talent utilization."

"We want to take this opportunity to extend our gratitude toMartin Glynn and recognize his leadership and key contributions toHSBC over the past 24 years," added Mehta. "Under Martin's leadership,the Bank experienced significant positive momentum with respect to ourbrand, 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 itsretail services business, after a 24-year career at GE. She willassume the title of President and CEO designate of the Bank onSeptember 1, 2006, and will work closely with Martin Glynn totransition into her new role. In addition to overseeing the U.S. Bank,Derickson will be responsible for HSBC Bank Canada and the Canadianconsumer finance business. She will continue to have responsibilityfor HSBC Mortgage Corporation (USA), Inc., the Bank's mortgagesubsidiary.

In her six years with HSBC, Derickson has established a solidreputation as an agent for change within the organization with anemphasis on strategic employee recruitment and development, and theintroduction of Six Sigma to HSBC Finance Corporation. Derickson isheralded as a business builder and is widely-recognized for herability to forge creative alliances with corporate clients acrossmultiple business lines.

In his new role as Group Executive, HSBC Finance Corporation andHSBC North America Holdings Inc., McDonagh will oversee HSBC'sTaxpayer Financial Services and Insurance Services businesses, itsAuto Finance business, as well as its HFC U.K. consumer financeoperations. Additionally, HSBC's Corporate Marketing unit will reportto him.

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

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

Paul Lawrence will assume the role of Head of CorporateInvestments Banking & Markets (CIBM), North America, having held thetitle of Chief Executive Officer, HSBC Singapore. Lawrence joined HSBCin 1982 and has held numerous senior positions in Asia and the UK,serving as Chief Executive Officer in the Philippines before beingappointed 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 twoyears as a credit manager at the then Marine Midland Bank in the USearly in his career. Lawrence will have a reporting line to StuartGulliver, Chief Executive, CIBM and Investments and a reporting lineto Sandy Derickson for HSBC Bank USA.

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

About HSBC North America Holdings Inc.

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

NOTE: Executive biographies available upon request.