HSBC Appoints U.S. CEO
Byline: Daily Herald news services
HSBC Holdings Plc., Europe's largest bank, Thursday named Brendan McDonagh chief executive officer of its North American unit in Prospect Heights.
Battered by mounting losses stemming from the U.S. subprime meltdown, HSBC North America is also in the midst of a move of thousands of workers to a new headquarters in Mettawa.
HSBC may need to add $13 billion to bad loan provisions for subprime lending in the U.S., Goldman Sachs Group Inc. analysts Roy Ramos wrote in a note last month. HSBC has ousted managers and cut lending in the U.S. to control bad loans and is focusing on emerging markets.
The top position had been vacant since last February. HSBC CEO Michael Geoghegan that month ousted Bobby Mehta after a surprise jump in soured loans, including at the company's HSBC Finance consumer finance unit.
Dublin, Ireland, native McDonagh, 49, replaced Mehta as chief executive of HSBC Finance, and has also since been chief operating officer of HSBC North America. McDonagh joined HSBC in 1979. …