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

Three Months Ended March 31	2010		2009
	(dollars are in millions)
Ratios excluding interest on deposits:
Net income (loss)	$	554	$	(89	)
Income tax expense		320		41
Less: Undistributed equity earnings		-		-
Fixed charges:
Interest on:
Borrowed funds		21		19
Long-term debt		140		237
One third of rents, net of income from subleases		7		5
Total fixed charges, excluding interest on deposits		168		261
Earnings before taxes and fixed charges, net of undistributed equity earnings	$	1,042	$	213
Ratio of earnings to fixed charges		6.20		0.82
Total preferred stock dividend factor(1)	$	29	$	10
Fixed charges, including the preferred stock dividend factor	$	197	$	271
Ratio of earnings to combined fixed charges and preferred stock dividends		5.29		0.79
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	168	$	261
Add: Interest on deposits		163		313
Total fixed charges, including interest on deposits	$	331	$	574
Earnings before taxes and fixed charges, net of undistributed equity earnings	$	1,042	$	213
Add: Interest on deposits		163		313
Total	$	1,205	$	526
Ratio of earnings to fixed charges		3.64		0.92
Fixed charges, including the preferred stock dividend factor	$	197	$	271
Add: Interest on deposits		163		313
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	360	$	584
Ratio of earnings to combined fixed charges and preferred stock dividends		3.35		0.90

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