EXHIBIT 12

HSBC USA INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO

COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Nine Months Ended September 30,
	2012			2011
	(dollars are in millions)
Ratios excluding interest on deposits:
Income (loss) from continuing operations	$	(1,295	)	$	433
Income tax expense (benefit)		357			238
Less: Undistributed equity earnings		-			-
Fixed charges:
Interest on:
Borrowed funds		24			32
Long-term debt		502			449
Others		27			96
One third of rents, net of income from subleases		22			23
Total fixed charges, excluding interest on deposits		575			600
Income (loss) from continuing operations before taxes and fixed charges, net of undistributed equity earnings	$	(363	)	$	1,271
Ratio of earnings from continuing operations to fixed charges		(.63	)		2.12
Total preferred stock dividend factor(1)	$	78		$	77
Fixed charges, including the preferred stock dividend factor	$	653		$	677
Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends		(.56	)		1.88
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	575		$	600
Add: Interest on deposits		243			196
Total fixed charges, including interest on deposits	$	818		$	796
Earnings from continuing operations before taxes and fixed charges, net of undistributed equity earnings	$	(363	)	$	1,271
Add: Interest on deposits		243			196
Total	$	(120	)	$	1,467
Ratio of earnings from continuing operations to fixed charges		(.15	)		1.84
Fixed charges, including the preferred stock dividend factor	$	653		$	677
Add: Interest on deposits		243			196
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	896		$	873
Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends		(.13	)		1.68

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