Skip navigation
Watchlist Sponsored By :

Current DateTime: 02:56:19 01 Dec 2009
LinksList Documentid: 24355697
  • The Cost of True Love

      In the popular holiday song "The 12 Days of Christmas," the cost of gifts - from the 12 drummers drumming to a partridge in a pear tree - is quite pricey.

  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

FEATURED QUIZZES


Current DateTime: 02:56:18 01 Dec 2009
LinksList Documentid: 33793611
  • Test Your Google IQ

      How much do you know about the most popular search engine in the world? Take the following quiz and find out.

  • How Well Do You Know Your Bird?

      Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.

  • A Healthier & Wealthier You

      Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.


Current DateTime: 02:56:19 01 Dec 2009
LinksList Documentid: 24890560
  • Holiday Central

      There are plenty of reasons to believe that this Christmas holiday season will not be as bad for retailers as last year.

  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

powered by digg
HSBC Faces Another Hit from US Mortgages
By: Reuters | 11 Nov 2007 | 09:32 AM ET
Text Size

Europe's biggest bank HSBC is this week expected to unveil a further big hit from its exposure to the U.S. mortgage crisis.

HSBC
Kirsty Wigglesworth / AP
HSBC is expected to report a larger hit from its exposure to the U.S. mortgage crisis

HSBC Finance, the unit formerly called Household, will unveil third-quarter results on Wednesday.

The Sunday Telegraph newspaper said HSBC will reveal a new $1 billion hit in the results. But the figure could be higher than that as losses from the run-off of the U.S. mortgage book
was about $2 billion in the second quarter and the market has deteriorated since then, analysts have said.

HSBC declined to comment on Sunday.

HSBC's group charge for bad debts was $6.35 billion in the first half of the year, up 63 per cent from $3.89 billion in the same period last year as it continued to suffer from past loans to the hard hit U.S. subprime mortgage sector.

The bank said at the time of the results at the end of July the jump in bad debts had been in line with its expectations and it was pleased with how it was dealing with its exposure to U.S. housing market problems, but the rest of the year would remain tough.

Earlier this year new leadership at HSBC Finance put together a team to examine and monitor credit risk and it stopped buying subprime loans originated by other lenders. It closed its U.S. subprime mortgage unit in September.

HSBC shares have fallen in recent weeks amid fears that banks face more hefty writedowns due to deepening credit market problems, but the shares have held up better than its major UK rivals Royal Bank of Scotland and Barclays.

There has been a sharp rise in the cost of credit default swaps (CDS), which are used as insurance on credit quality, for all three banks, showing the worry about write-offs.

Barclays CDSs have widened 31 basis points this month to 68 basis points while RBS is 20 bps wider at 61 bps and HSBC is 18 bps wider at 44 bps -- all considered major moves for financial
credits.

Copyright 2009 Reuters. Click for restrictions.
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Ever wished your cab driver would stop chatting and just get to where you're going? Well, that moment is closer than ever.
  • UPS truck
  • UPS is giving its customers the option to offset its carbon emissions when sending a package.
  • Romania's presidential campaign has been rocked by a video that may show the president striking a 10-year-old boy.
  • alligator
  • Raising alligators is hard work, and the fickle taste of rich consumers has just made it much harder, says the NY Times.
  • A recent issue of ESPN Magazine was one of its top sellers ever, and it only took scantily clad athletes to make it happen.
  • The continued real estate boom in China is partially fueled by a generational flood of newlyweds.
ADD COMMENTS
Remaining characters


Current DateTime: 01:25:14 01 Dec 2009
LinksList Documentid: 29778428

Current DateTime: 01:00:36 01 Dec 2009
LinksList Documentid: 29779196

Current DateTime: 01:30:54 01 Dec 2009
LinksList Documentid: 29779199

Current DateTime: 01:00:39 01 Dec 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters