EXHIBIT 12

HSBC USA INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Year Ended December 31,
	2010		2009			2008			2007			2006
	(dollars are in millions)
Ratios excluding interest on deposits:
Income (loss) from continuing operations	$	1,558	$	(189	)	$	(1,733	)	$	105		$	1,017
Income tax (benefit) expense		742		(110	)		(943	)		(19	)		516
Less: Undistributed equity earnings		28		28			35			-			34
Fixed charges:
Interest on:
Borrowed funds		81		74			283			357			300
Long-term debt		605		782			985			1,443			1,457
One third of rents, net of income from subleases		29		24			24			29			25
Total fixed charges, excluding interest on deposits		715		880			1,292			1,829			1,782
(Loss) earnings from continuing operations before taxes and fixed charges, net of undistributed equity earnings	$	2,987	$	553		$	(1,419	)	$	1,915		$	3,281
Ratio of (loss) earnings to fixed charges		4.18		.63			(1.10	)		1.05			1.84
Total preferred stock dividend factor(1)	$	109	$	115		$	125		$	88		$	132
Fixed charges, including the preferred stock dividend factor	$	824	$	995		$	1,417		$	1,917		$	1,914
Ratio of (loss) earnings from continuing operations to combined fixed charges and preferred stock dividends		3.63		.56			(1.00	)		1.00			1.71
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	715	$	880		$	1,292		$	1,829		$	1,782
Add: Interest on deposits		580		989			2,419			3,833			3,109
Total fixed charges, including interest on deposits	$	1,295	$	1,869		$	3,711		$	5,662		$	4,891
(Loss) earnings from continuing operations before taxes and fixed charges, net of undistributed equity earnings	$	2,987	$	553		$	(1,419	)	$	1,915		$	3,281
Add: Interest on deposits		580		989			2,419			3,833			3,109
Total	$	3,567	$	1,542		$	1,000		$	5,748		$	6,390
Ratio of earnings to fixed charges		2.75		.83			.27			1.02			1.31
Fixed charges, including the preferred stock dividend factor	$	824	$	995		$	1,417		$	1,917		$	1,914
Add: Interest on deposits		580		989			2,419			3,833			3,109
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	1,404	$	1,984		$	3,836		$	5,750		$	5,023
Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends		2.54		.78			.26			1.00			1.27

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