HSBC Holdings PLC today said two of its top U.S. executives, including the head of all North American business, are stepping down.

The departures follow an earlier shake-up this month as HSBC is trying to fix problems with its U.S. mortgage portfolio. HSBC said earlier this month that it needed to add nearly US$2 billion to its costs to cover bad debts, including soured mortgages.

The two executives departing are Bobby Mehta, CEO of HSBC North America Holdings Inc. and HSBC Finance Corp., and Sandy Derickson, president and CEO of HSBC Bank USA.

Both had been senior executives at Household International Inc., the U.S. subprime lender which HSBC acquired in 2003 for US$14.8 billion.

Mehta will be succeeded by Brendan McDonagh as CEO of HSBC Finance Corp. McDonagh was recently named chief operating officer of HSBC Finance in a shake-up that followed the bank’s disclosure that it had to add the nearly US$2 billion to cover 2006 debt losses. The company didn’t name a CEO for HSBC North America.

Mehta said in a statement Thursday, “I am now ready to pursue more entrepreneurial interests and look forward to this next stage with great anticipation.”

Commenting on Mehta’s departure, Michael Geoghegan, group chief executive of HSBC Holdings plc, said, “We wish Bobby well. He has made a very significant contribution to a diverse business serving 35 million North American customers and providing some US$9 billion in net profit since we acquired Household International.”

Both Mehta and Derickson are holdovers from the Household executive ranks. Mehta joined Household in 1998 from Boston Consulting Group to help restructure Household’s credit card business. Derickson joined Household two years later after a long career at GE Capital Auto Financial Services.