Wednesday, November 14, 2007

HSBC: $3.4 billion Writedown, Warns of "Further Deterioration"

by Bill McBride on 11/14/2007 08:50:00 AM

From MarketWatch: HSBC to take $3.4 billion charge over U.S. losses

HSBC Holdings on Wednesday ... it's taking a $3.4 billion loan-impairment charge in its U.S. consumer finance business during the third quarter, which it said was $1.4 billion higher than would have been implied by extrapolating first-half trends.
"I think the thing that's emerged in the third quarter is that the housing market deterioration is beginning to have a broader impact, both within the market and beginning to extend into other areas," said Douglas Flint, group finance director, in a prepared interview.
From AP: HSBC mortgage takes $3.4B charge in US (hat tip Keith)
HSBC warned that the subprime crisis could deepen and said further volatility as a result of the credit crunch was "more than a remote possibility"

"There is the probability of further deterioration if the current housing market distress continues and further impacts the broader economy," the company said.
The confessional is busy this morning.