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The fire sale in mortgage securities has yet to begin. But it’s coming. The implications for the rest of financial markets aren’t clear but when confidence is shaken in one market there usually is collateral damage. Certainly, many Americans will make their mortgage payments as they always have. But the $US1.5 trillion ($1700 billion) in subprime mortgage bonds sold from 2003 to 2007 tells you that a huge number of high-risk borrowers were financed in that period. Some of those loans already have failed; more assuredly will fail.
And the two biggest names to pay the two largest fines for predatory subprime lending are Ameriquest and Household International / HSBC.
This article, Fire sale in mortgage securities beginning, is just one of our articles from our Bank Horror Stories, HSBC Secrets Part 3
Bank Horror Stories monitors banking problems and customer complaints and has done so since 1999. Writers hold no stock positions. Some material is used under the fair use copyright act.
We use Thomson Reuters News Service Calais in all production material but are not associated with Thomson Reuters, banks, or financial institutions in any way.
