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European bank HSBC reported a 29% drop in first half profits. In the same half in 2007, HSBC posted a $10.9 billion profit, while in the same half this year they posted a $7.7 billion profit.

HSBC holds Household International Inc. partially responsible for the decline. In 2003, HSBC purchased the Illinois based lender. This was a pretty poor decision because it made the bank the largest U.S. sub prime mortgage lender.

I do not feel bad for any bank that makes these mistakes. They became greedy and purchased other banks participating in sub prime lending. Shame on them.

Jeremy

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