Originally Posted by nako
(And as a side point, HSBC is one of the largest banking companies in the world, though their presence in the US has been somewhat limited until recently.)
Mike
might be the 3rd biggest bank in the world but hsbc direct is not affiliated in anyway with hsbc holdings in case of default. Beware not to go over FDIC limits as regardless of affiliation they fund the banks separately and use completely separate financial statements in determining solvency. In fact, HSBC direct is most likely (like most high yield savings accts) funded with sub bank debt which is junior to debt and preferred stock, in some cases the debt is subordinate to common stock too. Regardless, your long US treasury debt so long u dont go over FDIC limits. they can easily default w/o even affecting HSBC holdings ratings debt which i think is AA-/Aa3 by S&P/Mdys.