From Wikipedia, the free encyclopedia
Beneficial Corporation
was one of the largest
consumer finance
companies in the United States, prior to its acquisition by
Household International, Inc.
in 1998. Beneficial began as the Beneficial Loan Society in 1914 in
Elizabeth, New Jersey
, founded by “Colonel” Clarence Hodson (1868-1928). Norwegian immigrant Olaus Westby Caspersen (1896?1971) joined Beneficial in 1920. In 1929, the company was reorganized as Beneficial Finance Corporation by Olaus Caspersen who would spend 18 years as president of the company.
[1]
[2]
In 1960, the company entered the British market. In 1961, the company purchased
Western Auto Supply Co.
, and in 1965 purchased
Spiegel, Inc
[3]
(later sold in 1981).
[4]
In 1970, the company changed its name to Beneficial Corporation. In 1976, Beneficial began offering credit cards through its People's Bank & Trust Co. subsidiary in
Delaware
. In the same year,
Finn M. W. Caspersen
, the son of Olaus Caspersen, became chairman and chief executive. The company bought Parliament Leasing in 1977, and First Texas Financial Corp., a
savings and loan
, in 1978. In 1977, Beneficial entered the
reinsurance
business through its insurance subsidiaries, but this business caused significant financial losses in the 1980s. Beneficial downsized this business and emphasized its second mortgage business.
[3]
In 1998, the company was purchased by Household International, Inc., for about $8.25 billion in stock.
[5]
Household International was in turn acquired by
HSBC Group
in 2003, and made a part of the
HSBC Finance
Company.
References
[
edit
]
|
---|
Origin
| | |
---|
Board of directors
| |
---|
Brands
| |
---|
Principal local banks
| |
---|
Subsidiary banks
| |
---|
Minority stakes and JVs
| |
---|
Predecessor companies
| |
---|
Former subsidiaries
| |
---|
Scandals
| |
---|
|