HSBC Seeks National Charter for U.S. Bank Unit

Davenport, Todd, American Banker

Though charter swaps are commonplace in the banking industry, the announcement that the primary domestic banking subsidiary of HSBC Holdings PLC would shed its New York state charter for a national one is attracting attention because of its size and the timing.

HSBC said Monday that it would seek to charter HSBC USA Bank NA, and transfer about $93 billion of assets to the jurisdiction of the Office of the Comptroller of the Currency from the New York state banking department's. The move comes as New York state officials, including attorney general Eliot Spitzer and bank superintendent Diana Taylor, have been criticizing OCC preemption rules that took effect last month.

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Publication information: Article title: HSBC Seeks National Charter for U.S. Bank Unit. Contributors: Davenport, Todd - Author. Magazine title: American Banker. Volume: 169. Issue: 56 Publication date: March 23, 2004. Page number: 3. © 2009 SourceMedia, Inc. COPYRIGHT 2004 Gale Group.

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