Monday, December 3, 2012
The hidden sub-prime mess sees the light of day
"HSBC is preparing its first sale of sub-prime loans since the height of the financial crash, as Britain's largest bank begins to off-load more than $40bn (Â£25bn) of toxic US debt it still holds on its books". "The disposals will mark the first time HSBC has sold any of its holding of sub-prime debt since the collapse of Lehman Brothers in September 2008 and is intended to kick off the sale of the $44.2bn of toxic debt still held by the bank. HSBC was one of the first banks to recognise the problems in the US sub-prime housing market, where millions of Americans were given loans to buy properties they could not afford".