Exhibit 12

HSBC USA Inc.
Computation of Ratio of Earnings to Fixed Charges and
Earnings to Combined Fixed Charges and Preferred Stock Dividends
(in millions, except ratios)

Three months ended March 31		2007		2006
Ratios excluding interest on deposits:
Net income	$	273	$	308
Income tax expense		103		143
Less: Undistributed equity earnings		—		12
Fixed charges:
Interest on:
Borrowed funds		71		73
Long-term debt		372		340
One third of rents, net of income from subleases		7		6
Total fixed charges, excluding interest on deposits		450		419
Earnings before taxes and fixed charges, net of undistributed equity earnings	$	826	$	858
Ratio of earnings to fixed charges		1.84		2.05
Total preferred stock dividend factor (1)	$	34	$	25
Fixed charges, including the preferred stock dividend factor	$	484	$	444
Ratio of earnings to combined fixed charges and preferred stock dividends		1.71		1.93
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	450	$	419
Add: Interest on deposits		889		649
Total fixed charges, including interest on deposits	$	1,339	$	1,068
Earnings before taxes and fixed charges, net of undistributed equity earnings	$	826	$	858
Add: Interest on deposits		889		649
Total	$	1,715	$	1,507
Ratio of earnings to fixed charges		1.28		1.41
Fixed charges, including the preferred stock dividend factor	$	484	$	444
Add: Interest on deposits		889		649
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	1,373	$	1,093
Ratio of earnings to combined fixed charges and preferred stock dividends		1.25		1.38

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

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