EXHIBIT 12

HSBC USA INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Year Ended December 31,
	2009			2008			2007			2006		2005
	(dollars are in millions)
Ratios excluding interest on deposits:
Net (loss) income	$	(142	)	$	(1,689	)	$	138		$	1,036	$	976
Income tax (benefit) expense		(84	)		(919	)		(1	)		530		566
Less: Undistributed equity earnings		28			35			-			34		73
Fixed charges:
Interest on:
Borrowed funds		74			283			357			300		270
Long-term debt		782			985			1,443			1,457		1,025
One third of rents, net of income from subleases		24			24			29			25		19
Total fixed charges, excluding interest on deposits		880			1,292			1,829			1,782		1,314
(Loss) earnings before taxes and fixed charges, net of undistributed equity earnings	$	626		$	(1,351	)	$	1,966		$	3,314	$	2,783
Ratio of (loss) earnings to fixed charges		.71			(1.05	)		1.07			1.86		2.12
Total preferred stock dividend factor(1)	$	116		$	122		$	99		$	133	$	71
Fixed charges, including the preferred stock dividend factor	$	996		$	1,414		$	1,928		$	1,915	$	1,385
Ratio of (loss) earnings to combined fixed charges and preferred stock dividends		.63			(.95	)		1.02			1.73		2.01
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	880		$	1,292		$	1,829		$	1,782	$	1,314
Add: Interest on deposits		991			2,426			3,840			3,113		1,771
Total fixed charges, including interest on deposits	$	1,871		$	3,718		$	5,669		$	4,895	$	3,085
(Loss) earnings before taxes and fixed charges, net of undistributed equity earnings	$	626		$	(1,351	)	$	1,966		$	3,314	$	2,783
Add: Interest on deposits		991			2,426			3,840			3,113		1,771
Total	$	1,617		$	1,075		$	5,806		$	6,427	$	4,554
Ratio of earnings to fixed charges		.86			0.29			1.02			1.31		1.48
Fixed charges, including the preferred stock dividend factor	$	996		$	1,414		$	1,928		$	1,915	$	1,385
Add: Interest on deposits		991			2,426			3,840			3,113		1,771
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	1,987		$	3,840		$	5,768		$	5,028	$	3,156
Ratio of earnings to combined fixed charges and preferred stock dividends		.81			.28			1.01			1.28		1.44

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