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

Nine Months Ended September 30	2009			2008
	(dollars are in millions)
Ratios excluding interest on deposits:
Net loss	$	(177	)	$	(588	)
Income tax expense (benefit)		56			(334	)
Income (loss) before income tax expense (benefit)		(121	)		(922	)
Less: Undistributed equity earnings		24			23
Fixed charges:
Interest on:
Borrowed funds		51			227
Long-term debt		634			766
One third of rents, net of income from subleases		18			18
Total fixed charges, excluding interest on deposits		703			1,011
Earnings (loss) before taxes and fixed charges, net of undistributed equity earnings	$	558		$	66
Ratio of earnings (loss) to fixed charges		0.79			0.07
Total preferred stock dividend factor(1)	$	37		$	92
Fixed charges, including the preferred stock dividend factor	$	740		$	1,103
Ratio of earnings to combined fixed charges and preferred stock dividends		0.75			0.06
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	703		$	1,011
Add: Interest on deposits		804			1,956
Total fixed charges, including interest on deposits	$	1,507		$	2,967
Earnings (loss) before taxes and fixed charges, net of undistributed equity earnings	$	558		$	66
Add: Interest on deposits		804			1,956
Total	$	1,362		$	2,022
Ratio of earnings to fixed charges		0.90			0.68
Fixed charges, including the preferred stock dividend factor	$	740		$	1,103
Add: Interest on deposits		804			1,956
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	1,544		$	3,059
Ratio of earnings to combined fixed charges and preferred stock dividends		0.88			0.66

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