HSBC Sells US Tax Advisory

HSBC Holdings PLC
02 January 2008


                  HSBC SELLS US WEALTH & TAX ADVISORY BUSINESS
                             IN MANAGEMENT BUY-OUT

HSBC USA Inc. has signed an agreement to sell Wealth & Tax Advisory Services USA
Inc. ('WTAS') to participating WTAS managing directors in a management buy-out.
WTAS provides tax advisory services in the United States to high net worth
individuals including HSBC Private Bank customers. The transaction will enable
WTAS to pursue a broader expansion strategy.

In consideration for the sale, HSBC will receive US$5 million in cash and
deferred notes with a principal amount totalling US$60.85 million. Under the
agreement, HSBC has an option to acquire 19.9 per cent of the equity of WTAS,
subject to certain conditions and dilution as new managing directors join WTAS
over time.

Chris Meares, HSBC Private Banking Chief Executive Officer, said: "We wish the
WTAS management team well in taking the business forward. Our focus is on
developing our core private banking activities in both developing and developed
markets using HSBC's unique distribution network."

Completion of the transaction is subject to customary closing conditions.

Notes to editors:

1. WTAS

Wealth and Tax Advisory Services, Inc. ('WTAS') is one of the largest national
independent tax advisory firms (unaffiliated with an auditing institution). It
specialises in individual and business entity tax compliance and consulting,
providing a wide range of tax, valuation and financial advisory services. The
practice consists of over 350 professionals located in 11 major cities
throughout the United States.

2. HSBC Private Bank

HSBC Private Bank is the marketing name for the private banking business
conducted by the principal private banking subsidiaries of the HSBC Group
worldwide. HSBC Private Bank, together with HSBC Guyerzeller and the private
banking activities of HSBC Trinkaus & Burkhardt as well as the HSBC Private
Banking entities, provides private banking and trustee services to high net
worth individuals and their families through 90 locations in some 37 countries
and territories in the Americas, the Asia-Pacific region, Europe and the Middle
East.

3. HSBC USA Inc.

HSBC USA Inc. is an indirectly-held, wholly owned subsidiary of HSBC North
America Holdings Inc. HSBC USA Inc. one of the nation's 10 largest bank holding
companies by assets and is the holding company of HSBC Bank USA, N.A.

4. HSBC Holdings plc

HSBC Holdings plc serves over 125 million customers worldwide through around
10,000 offices in 83 countries and territories in Europe, the Asia-Pacific
region, the Americas, the Middle East and Africa. With assets of some US$2,150
billion at 30 June 2007, HSBC is one of the world's largest banking and
financial services organisations. HSBC is marketed worldwide as 'the world's
local bank'.



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