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HSBC's American Subprime Loan Write-Offs Hit $51 Million A Day

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HSBC has stepped up the rate at which it writes off loans to poor Americans to an unprecedented $51 million (£25.7 million) a day as the British bank grapples with an increase in people defaulting on their mortgages, credit cards, personal loans and car finance.

Strong results unveiled in almost every other part of HSBC yesterday were overshadowed by the US sub-prime business, which wrote off $11.7 billion in dud loans last year and said the situation was still deteriorating.

Write-offs in HSBC Finance, almost all of them because of US sub-prime business, have risen from $1.89 billion in the first quarter to $2.19 billion in the second, $3.48 billion in the third and $4.63 billion in the fourth. The quantity of loans more than two months in arrears has also soared during the four quarters, from $7.4 billion to $12.5 billion.

Read the whole story at Times Online