by Calculated Risk on 2/28/2009 05:08:00 PM

From The Times: HSBC takes £17bn hit on bad loans

HSBC is to own up to the full horror of its American sub-prime business, Household, when it unveils a £7 billion goodwill write-off in addition to a £17 billion provision against rising bad loans.

The provisions will be announced tomorrow alongside a heavily discounted £12 billion rights issue – the biggest ever held in Britain – and a dividend cut ...

The fundraising will make HSBC the strongest bank in the world that has not received a cash injection from the state. Its tier-one ratio, a key measure of financial strength, will rise from 8.5% to 10.5%. Analysts say it will provide a $40 billion (£28 billion) buffer against further bad debts.

Oh, the horror! The confessional remains busy, and AIG will be dropping by on Monday.