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  • BBC NEWS - Business - US Housing Slowdown Knocks HSBC

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    Siratullah Shah
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    HSBC warned that its bad debt provisions for 2006 would be 20% higher than expected due to problems in the US housing market slowing loan repayments. The bank said more homeowners in the US were failing to meet loan repayments as property prices stopped rising and options to refinance loans decreased. HSBC shares fell 2.4% in Hong Kong as the news surprised investors and provided a reason to sell shares quickly.

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    BBC NEWS _ Business _ US Housing Slowdown Knocks HSBC

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    HSBC warned that its bad debt provisions for 2006 would be 20% higher than expected due to problems in the US housing market slowing loan repayments. The bank said more homeowners in the US were failing to meet loan repayments as property prices stopped rising and options to refinance loans decreased. HSBC shares fell 2.4% in Hong Kong as the news surprised investors and provided a reason to sell shares quickly.

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    19 views1 page

    BBC NEWS - Business - US Housing Slowdown Knocks HSBC

    Uploaded by

    Siratullah Shah
    HSBC warned that its bad debt provisions for 2006 would be 20% higher than expected due to problems in the US housing market slowing loan repayments. The bank said more homeowners in the US were failing to meet loan repayments as property prices stopped rising and options to refinance loans decreased. HSBC shares fell 2.4% in Hong Kong as the news surprised investors and provided a reason to sell shares quickly.

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    BBC NEWS | Business | US housing slowdown knocks HSBC

    US housing slowdown knocks HSBC


    Banking group HSBC has warned that its bad debt provisions for 2006 will be 20% higher than expected - after problems in the US housing market. Bad debt provisions across the group are now set to be about $10.5bn (5bn). The slowing growth of the US housing market had led to more people not meeting repayments, HSBC said, increasing its liability. Homeowners had fewer ways of refinancing loans because property prices were not rising, it added. BBC business editor Robert Peston said that the news was a "warning to others banks to watch out". However, HSBC said that, aside from its US mortgage business, the rest of its 2006 performance had been in line with expectations. In trading in Hong Kong, HSBC shares fell 2.4% . "This is something which surprised the market, providing investors with a reason to sell quickly," said Celestial Asia Securities director, Kitty Chan.

    Story from BBC NEWS: http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/6341205.stm Published: 2007/02/08 08:04:41 GMT BBC 2011

    http://newsvote.bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/2/hi/business/6341205.stm[9/9/2011 11:13:27 AM]

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