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,
	2011		2010		2009			2008			2007
	(dollars are in millions)
Ratios excluding interest on deposits:
Income (loss) from continuing operations	$	455	$	1,006	$	(167	)	$	(1,698	)	$	114
Income tax (benefit) expense		227		439		(98	)		(924	)		(14	)
Less: Undistributed equity earnings		-		28		28			35			-
Fixed charges:
Interest on:
Borrowed funds		44		78		61			279			354
Long-term debt		600		492		514			826			1,193
Others		99		5		-			-			-
One third of rents, net of income from subleases		31		29		24			24			29
Total fixed charges, excluding interest on deposits		774		604		599			1,129			1,576
Earnings (loss) from continuing operations before taxes and fixed charges, net of undistributed equity earnings	$	1,456	$	2,021	$	306		$	(1,528	)	$	1,676
Ratio of earnings (loss) to fixed charges		1.88		3.35		.51			(1.35	)		1.06
Total preferred stock dividend factor(1)	$	110	$	106	$	116		$	122		$	102
Fixed charges, including the preferred stock dividend factor	$	884	$	710	$	715		$	1,251		$	1,678
Ratio of earnings (loss) from continuing operations to combined fixed charges and preferred stock dividends		1.65		2.85		.43			(1.22	)		1.00
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	774	$	604	$	599		$	1,129		$	1,576
Add: Interest on deposits		251		329		551			1,851			3,115
Total fixed charges, including interest on deposits	$	1,025	$	933	$	1,150		$	2,980		$	4,691
Earnings (loss) from continuing operations before taxes and fixed charges, net of undistributed equity earnings	$	1,456	$	2,021	$	306		$	(1,528	)	$	1,676
Add: Interest on deposits		251		329		551			1,851			3,115
Total	$	1,707	$	2,350	$	857		$	323		$	4,791
Ratio of earnings to fixed charges		1.67		2.52		.75			.11			1.02
Fixed charges, including the preferred stock dividend factor	$	884	$	710	$	715		$	1,251		$	1,678
Add: Interest on deposits		251		329		551			1,851			3,115
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	1,135	$	1,039	$	1,266		$	3,102		$	4,793
Ratio of earnings (loss) from continuing operations to combined fixed charges and preferred stock dividends		1.50		2.26		.68			.10			1.00

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