Global Effects of the Sub-Prime Lending Market Problems in the US
1 March 2008
HSBC, one of the world’s largest banks has announced that it has suffered a total loss of more $17 Billion making it one of the worst hit financial institutions by the financial woes that the US is currently facing. The company says that the loss is high but gains in the Asian market have helped a lot in easing the pain. The banks profits rose by 20% from last year allowing it to survive the extreme pressure placed on them by the sub-prime lending woes that have hit the US financial market. Their problems began whe they opted to buy out one of America’s leading lending firms a short time ago leaving them ripe for the taking and with the said huge losses in therms of their global financial markets. Mainland China is one of the biggest open markets and Asia are proving to be their apples and are hoping to move more investments out of the US into other promising areas. They are maintaining some of their assets in the US but mostly due to allow them to maintain a steady share of the market in the said country.
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