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	2008			2007
Ratios excluding interest on deposits:
Net (loss) income	$	(278	)	$	273
Income tax (benefit) expense		(164	)		103
Less: Undistributed equity earnings		—			—
Fixed charges:
Interest on:
Borrowed funds		99			71
Long-term debt		303			372
One third of rents, net of income from subleases		6			7
Total fixed charges, excluding interest on deposits		408			450
Earnings before taxes and fixed charges, net of undistributed equity earnings	$	(34	)	$	826
Ratio of earnings to fixed charges		(0.08	)		1.84
Total preferred stock dividend factor (1)	$	35		$	34
Fixed charges, including the preferred stock dividend factor	$	443		$	484
Ratio of earnings to combined fixed charges and preferred stock dividends		(0.08	)		1.71
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	408		$	450
Add: Interest on deposits		799			889
Total fixed charges, including interest on deposits	$	1,207		$	1,339
Earnings before taxes and fixed charges, net of undistributed equity earnings	$	(34	)	$	826
Add: Interest on deposits		799			889
Total	$	765		$	1,715
Ratio of earnings to fixed charges		0.63			1.28
Fixed charges, including the preferred stock dividend factor	$	443		$	484
Add: Interest on deposits		799			889
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	1,242		$	1,373
Ratio of earnings to combined fixed charges and preferred stock dividends		0.62			1.25

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

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