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,
	2012		2011
	(dollars are in millions)
Ratios excluding interest on deposits:
Income from continuing operations	$	80	$	305
Income tax expense (benefit)		18		(13	)
Less: Undistributed equity earnings		-		7
Fixed charges:
Interest on:
Borrowed funds		9		13
Long-term debt		154		151
Others		12		1
One third of rents, net of income from subleases		8		8
Total fixed charges, excluding interest on deposits		183		173
Income from continuing operations before taxes and fixed charges, net of undistributed equity earnings	$	281	$	458
Ratio of earnings from continuing operations to fixed charges		1.54		2.65
Total preferred stock dividend factor(1)	$	22	$	17
Fixed charges, including the preferred stock dividend factor	$	205	$	190
Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends		1.37		2.41
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	183	$	173
Add: Interest on deposits		76		67
Total fixed charges, including interest on deposits	$	259	$	240
Earnings from continuing operations before taxes and fixed charges, net of undistributed equity earnings	$	281	$	458
Add: Interest on deposits		76		67
Total	$	357	$	525
Ratio of earnings from continuing operations to fixed charges		1.38		2.19
Fixed charges, including the preferred stock dividend factor	$	205	$	190
Add: Interest on deposits		76		67
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	281	$	257
Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends		1.27		2.04

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