HSBC to Stop Writing U.S. Car Loans
Posted on: Monday, 4 August 2008, 12:00 CDT
HSBC Holdings said Monday it would stop writing new U.S. car loans after reporting a 29-percent decline in first-half profits.
The bank reported first-half net profits of $7.72 billion, compared with $10.9 billion a year ago, The Wall Street Journal reported.
The financial giant pushed hard into U.S. markets with the $17.69 billion purchase of Household International in 2003, the Times of London reported. With the second-quarter report issued Monday, HSBC devalued that purchase by $527 million, the Times reported.
The bank said bad loans to U.S. consumers had declined but business in U.S. auto loans had dropped below a sustainable threshold, the Times reported.
So we will not be originating further loans, the bank said.
Profits for the bank rose 51 percent to $5.2 billion in Europe and rose in every region in the second quarter except North America, the report said.
HSBC Chairman Stephen Green said credit markets were now the most difficult for several decades.
HSBC was not immune from the turmoil, he said.
Source: United Press International
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