HSBC loses £2.7bn on US housing market

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HSBC loses £2.7bn on US housing market

Mon 10th Nov 2008

HSBC announced today that losses in its US division between July and September this year amounted to $4.3 billion (£2.7 billion), thanks to the collapse of the US mortgage market.

The third quarter loss, which comes on top of a write off of $3.6 billion (£2.9 billion) in the second quarter of this year according to the BBC, may affect the beleaguered bank's willingness to grant personal loans and provide mortgages.

With the US housing market still in turmoil and billions being lost to the subprime mortgage crisis, HSBC's chief executive Michael Geoghegan warned that the outlook was bleak.

Mr Geoghegan said: "Current trends point to further deterioration in the near to medium term".

The losses announced today, which were larger than Observer analysts had predicted, may mean that HSBC is reluctant to follow other high street banks in lowering its interest rates for mortgages and personal loans.

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