International

Trading in Bank of China suspended

Written by Timothy Blake on January 22, 2008 under International

Shangahai – Trading in Bank of China was suspended Tuesday pending a major announcement, but the bank denied reports that it would post massive losses over assets linked to US subprime mortgages. The suspension came after Hong Kong media reported China’s third-largest bank could announce a significant writedown in 2007 on its 7.95 billion US dollars of investments in subprime-related securities.

Shocking news from stock markets around the world

Written by Timothy Blake on January 21, 2008 under International

Dominating the news on Monday January 21, 2007 – a day when the stock market is closed in the United States – is news about huge market losses in other countries. No longer a “fear of recession”, it is plain that recession already hit the United States. One report says if the recession lasts longer than nine months it will cause another global economic problem. Others theorize that the United States has been in a recession since 2001, masked by ‘free money’ from the housing market. Here is what happened around the world in the markets on Monday:

UBS shows $10 billion subprime writedown

Written by Timothy Blake on December 12, 2007 under Archives, Economic Impact, International, Investors, Root Causes

This time it’s an investment bank with problems. Swiss-based UBS announced a $10 billion writedown this week on subprime exposures. An injection of capital from investors in Singapore and the Middle East was also announced. UBS has also slammed on the brakes at its investment bank, where the problems originated. UBS has been the biggest casualty so far among major European banks of the meltdown in U.S. subprime mortgages. Some analysts continue to characterize subprime as loans made to people with poor credit histories. Others say lack of regualtory action and oversight transformed predatory lending into acceptable lending standards.

Discover Card, Goldfish, Marbles are warning signs for U.S. banks

Written by Timothy Blake on December 03, 2007 under Archives, Economic Impact, International, Lenders, Risk Management

If the U.K. truly is a window to the future of U.S. economics the credit card industry must be on edge. Discover Card said this morning that it would take a charge to write off part of its Goldfish credit card business in Britain, where consumer credit has deteriorated. HSBC recently said they wanted to sell their Marbles credit card operation. Common sense tells us that credit cards will begin to sour, as did mortgages. On a related note, analysts finally admitted the so-called ‘subprime’ crisis is not related entirely to people with spotty credit.

Bradford & Bingley, Paragon try to stop problems

Written by Timothy Blake on December 02, 2007 under Archives, International, Outside the U.S.

As attention is focused on the United States we take a look at the U.K. where mortgage lenders have a crisis. Bradford & Bingley, the former building society, raised more than £4bn selling off two of its most solid mortgage books. Paragon, the specialist buy-to-let mortgage supplier, announced that it will attempt to repair its balance sheet with a £280m rights issue.
Shares in Paragon crashed 40% after it was forced to arrange a standby emergency funding package worth £280m with UBS.

« Older Entries
Newer Entries »

Our Sponsors

<
Our Partners Selected Articles


© Copyright 1998 - 2012 Mortgage Crisis Daily | 53 queries in 1.249 seconds.