Banking Woes Worsen

Banking Woes Worsen


More bad news is being predicted for the British mortgage industry as HSBC, the UK’s largest banking group announces that it expects to write off at least £2.5 billion.

HSBC have set warnings that the downturn could last for another year as they set aside $3 billion in bad debt provisions due to the damage of the credit crunch.

HSBC who are heavily involved in U.S. sub-prime lending have already written off $14 billion in the associated bad debts as more and more consumers default and fall into arrears. The banking group were among the first to admit problems in the sub-prime market had taken its toll.

Alliance and Leicester are also expected to reveal write downs as they meet shareholders for the annual meeting today.

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