H&R Block Drops as U.S. Order Ends HSBC Refund Loans
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H&R Block Inc. fell 7 percent after saying U.S. regulators blocked funding for its tax-refund loans and that alternative products may not be ready for the 2011 season.
The Office of the Comptroller of the Currency told HSBC Holdings Plc not to make refund-anticipation loans, according to a statement H&R Block released after business hours on Dec. 24. The order scuttled a deal the two companies reached after H&R Block, the biggest U.S. tax preparer, sued to force HSBC to offer the loans under a contract that was set to expire in 2013.