Ash4781 Posted September 21, 2007 Share Posted September 21, 2007 (edited) 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 September 21, 2007 by Ash4781 Quote Link to comment Share on other sites More sharing options...
Nationalist Posted September 21, 2007 Share Posted September 21, 2007 Well that's half the cash they got for selling their Canary Wharf HQ gone then. I wonder what they'll do with the other half? Plonkers Quote Link to comment Share on other sites More sharing options...
sunonmars Posted September 21, 2007 Share Posted September 21, 2007 Well that ought to make people sit up and go hmmm. Sounds like HSBC are up to their necks in toxic sh^t. Northern Rock part 2 anyone? Quote Link to comment Share on other sites More sharing options...
uncle_monty Posted September 21, 2007 Share Posted September 21, 2007 http://uk.biz.yahoo.com/21092007/325/hsbc-...prime-unit.htmlIMO 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. Quote Link to comment Share on other sites More sharing options...
crash2006 Posted September 21, 2007 Share Posted September 21, 2007 This is a good move the knock on effect will hurt other banks. Quote Link to comment Share on other sites More sharing options...
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