HSBC USA Inc., a subsidiary of London-based HSBC Holdings, said net income fell 10% in the second quarter, to $113.5 million, in part because it used up a key tax benefit.

HSBC USA's effective tax rate rose to 40% for the first half of the year, from 35% a year earlier, as tax-loss carryforwards expired. The carryforwards had previously reduced HSBC USA's taxes.

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