EXHIBIT 12

HSBC USA INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO

COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Six Months Ended June 30,
	2012			2011
	(dollars are in millions)
Ratios excluding interest on deposits:
Income (loss) from continuing operations	$	(513	)	$	261
Income tax expense (benefit)		369			121
Less: Undistributed equity earnings		-			-
Fixed charges:
Interest on:
Borrowed funds		15			21
Long-term debt		332			297
Others		13			85
One third of rents, net of income from subleases		15			15
Total fixed charges, excluding interest on deposits		375			418
Income from continuing operations before taxes and fixed charges, net of undistributed equity earnings	$	231		$	800
Ratio of earnings from continuing operations to fixed charges		.62			1.91
Total preferred stock dividend factor(1)	$	51		$	51
Fixed charges, including the preferred stock dividend factor	$	426		$	469
Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends		.54			1.71
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	375		$	418
Add: Interest on deposits		161			132
Total fixed charges, including interest on deposits	$	536		$	550
Earnings from continuing operations before taxes and fixed charges, net of undistributed equity earnings	$	231		$	800
Add: Interest on deposits		161			132
Total	$	392		$	932
Ratio of earnings from continuing operations to fixed charges		.73			1.69
Fixed charges, including the preferred stock dividend factor	$	426		$	469
Add: Interest on deposits		161			132
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	587		$	601
Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends		.67			1.55

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