Banking Woes Worsen

Banking Woes Worsen



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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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