Monday, Jul 30, 2007

Like we told you officially, it won't spread. Trust us.

FT.com: HSBC hurt by exposure to US subprime market

Half-year profits at HSBC were hit by the bank’s exposure to the US subprime mortgage market and a $236m (£116.5m) charge for fee refunds in its UK retail banking operations.

Posted by dohousescrashinthewoods @ 01:12 PM (201 views) Add Comment

6 Comments

1. Alan said...

The associated video by Deloittes is worth a watch.

A gloomy outlook going forward is presented as result of home loan defaults...which will take years to bottom out.

Monday, July 30, 2007 01:21PM Report Comment
 

2. dobber said...

In the half-year impairment charges on mortgages were $760m, and loans of $715m were written off against existing allowances, leaving the total allowance broadly unchanged at $2.1bn. Mr Geoghegan said the group had managed down its exposure to the mortgage business by $8bn to $41.4bn.

“We have stopped underwriting subprime mortgages and made management changes,” he said.

Helloooo!!!!!!!!!!!, UK subprime lenders, there may be a message for you here?

Monday, July 30, 2007 03:53PM Report Comment
 

3. Orwell said...

Don't worry, it's not catching...

Sub prime in the UK ? What Sub Prime? We've all borrowed one income times 3.5x the average salary in the area the house is valued to buy it haven't we?

So in Balham where they 'claim' a 2 1/2 bed railway workers cottage is 'worth' (I love that terminology) £500k, the occupants have an income of £450k (i.e. less £50k deposit), divided by 3.5 = £100k - simple really!

Tuesday, July 31, 2007 09:06AM Report Comment
 

4. Orwell said...

Errm or is it £40k?

Or.... £30K........


Or £20k....

Well you know what I mean anyway.

Tuesday, July 31, 2007 09:08AM Report Comment
 

5. cornishman said...

Tuesday, April 8, 2008 02:41PM Report Comment
 

6. This comment has been removed as it was found to be in breach of our Blog Policies.

 

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