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Hsbc To Shutter U.s. Subprime Unit

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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

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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.

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