EXHIBIT 12

HSBC FINANCE CORPORATION

COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND TO

COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

Six Months Ended June 30,	2012			2011
	(dollars are in millions)
Loss from continuing operations	$	(2,017	)	$	(393	)
Income tax		1,227			472
Loss from continuing operations before income tax		(3,244	)		(865	)
Fixed charges:
Interest expense		966			1,265
Interest portion of rentals(1)		4			5
Total fixed charges		970			1,270
Total earnings (loss) from continuing operations as defined	$	(2,274	)	$	405
Ratio of earnings to fixed charges		(2.34	)		.32
Preferred stock dividends(2)	$	94		$	100
Ratio of earnings (loss) to combined fixed charges and preferred stock dividends		(2.14	)		.30

⁽¹⁾ Represents one-third of rentals, which approximates the portion representing interest.

⁽²⁾ Preferred stock dividends are grossed up to their pretax equivalents.