Jump to content
House Price Crash Forum
Ash4781

Hsbc To Shutter U.s. Subprime Unit

Recommended Posts

http://uk.biz.yahoo.com/21092007/325/hsbc-...prime-unit.html

NEW YORK (Reuters) - HSBC Holdings (0005.HK - news) <HSBA.L>, Europe's biggest bank, said on Friday that it would close its U.S. subprime mortgage unit, cutting 750 jobs and taking an $880 million (436 million pound) writedown, because the business is no longer sustainable.

Decision One relies on a network of independent mortgage brokers to find borrowers and to submit loan applications, a model that has been curtailed or discontinued by other lenders burned by lax underwriting standards and outright fraud.

IMO Decision One's model reads like Northern Rock's model.

Edited by Ash4781

Share this post


Link to post
Share on other sites
http://uk.biz.yahoo.com/21092007/325/hsbc-...prime-unit.html

IMO Decision One's model reads like Northern Rock's model.

Except HSBC have the equity to write down. A big difference.

Sounds like HSBC are cutting their losses on US Subprime. Very sensible if you ask me.

Now we await what surprises are lurking in the UK's "non-conforming" sector.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 354 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.