With 49 year-old Irishman Brendan McDonagh in command, HSBC (the world's largest company and banking group) reacted very early and quickly to the mortgage crisis with a strategy that saved them from the massive losses that the big banks have been hit with. They have also saved the homes of many people who were on the verge of losing everything. In this case, the early bird truly got the worm.
Many mortgages are falling into foreclosure primarily because loan terms change, borrowers panic and then from lenders on up nobody wants to take the hit and lose all of that money. What HSBC did earlier than most is face the problem head on, set aside a sizeable chunk of money and then start working with borrowers to keep them in their homes and keep at least some of the revenue flowing into the company. McDonagh admits that they have sustained heavy losses but nowhere near what the rest of the industry has endured.
HSBC has turned its customer care department into something resembling the Pentagon. Armies of representatives man the phones and speak to beleaguered clients like high school counselors or therapists. Their goal is to put the panicky borrowers at ease and to work out deals that will keep their homes from foreclosing.
In most cases HSBC has been able to cut interest rates and generally help their clients keep their properties, which in turn helps the company stay above water. A lot of the credit goes to McDonagh whose expertise and know-how really saved the day before it was too late.