HSBC USA Inc.

EXHIBIT 12

HSBC USA INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

Six Months Ended June 30	2009			2008
	(dollars are in millions)
Ratios excluding interest on deposits:
Net loss	$	(338	)	$	(452	)
Income tax benefit		12			282
Loss before income tax benefit		(350	)		(734	)
Less: Undistributed equity earnings		-			13
Fixed charges:
Interest on:
Borrowed funds		34			167
Long-term debt		447			541
One third of rents, net of income from subleases		11			12
Total fixed charges, excluding interest on deposits		492			720
Earnings (loss) before taxes and fixed charges, net of undistributed equity earnings	$	142		$	(27	)
Ratio of earnings (loss) to fixed charges		0.29			(0.04	)
Total preferred stock dividend factor(1)	$	38		$	65
Fixed charges, including the preferred stock dividend factor	$	530		$	785
Ratio of earnings (loss) to combined fixed charges and preferred stock dividends		0.27			(0.03	)
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	492		$	720
Add: Interest on deposits		580			1,381
Total fixed charges, including interest on deposits	$	1,072		$	2,101
Earnings (loss) before taxes and fixed charges, net of undistributed equity earnings	$	142		$	(27	)
Add: Interest on deposits		580			1,381
Total	$	722		$	1,354
Ratio of earnings to fixed charges		0.67			0.64
Fixed charges, including the preferred stock dividend factor	$	530		$	785
Add: Interest on deposits		580			1,381
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	1,110		$	2,166
Ratio of earnings to combined fixed charges and preferred stock dividends		0.65			0.63

⁽¹⁾ Preferred stock dividends grossed up to their pretax equivalents.