Sunday, December 23, 2012

HSBC to start selling £25bn of toxic US debt

The bank is planning to sell four sub-prime loan portfolios worth a total of $2.7bn in the next year, with hedge funds already expressing an interest. The disposals will mark the first time HSBC has sold any of its holding of sub-prime debt since the collapse of Lehman Brothers in September 2008 and is intended to kick off the sale of the $44.2bn of toxic debt still held by the bank.

HSBC was one of the first banks to recognise the problems in the US sub-prime housing market, where millions of Americans were given loans to buy properties they could not afford.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9717776/HSBC-to-start-selling-25bn-of-toxic-US-debt.html