In Home-Lending Push, Banks Misjudged Risk
By Carrick Mollenkamp
HSBC Holdings, Washington Mutual
When the U.S. housing market was booming, HSBC Holdings PLC raced to join the party. Sensing opportunity in the bottom end of the mortgage market, the giant British bank bet big on borrowers with sketchy credit records.
Such subprime customers have always been risky, but
HSBC figured it could control that risk. In 2005 and 2006, it bought billions of dollars of subprime loans from other lenders, lured by the higher interest rates they carry.
Now, the party is over for HSBC -- and for lots of other bankers who aimed to cash in on the housing boom of the ...
Do take some time to see how
HSBC addressed the subprime issues
http://online.wsj.com/public/resources/documents/info-hsbc_mortgage07.html
