Industry News

Lenders say billions more in write-downs, losses expected

Fannie Mae returns to regular financial reporting

HSBC Holdings PLC, Bear Stearns Cos., Bank of America Corp., E*Trade and mortgage repurchaser Fannie Mae are among the latest companies to reveal billions in lending-related losses. HSBC today said it would take a $3.4 billion charge during the third quarter related to worsening losses at HSBC Finance Corp., the company's U.S.-based mortgage lending business. The charge was $1.4 billion greater than expected by a simple extrapolation of trends during the first half of the year, suggesting losses are accelerating, HSBC said in a press release. "Deterioration in U.S. housing markets is affecting consumer finance credit quality more broadly than hitherto and loan impairment charges are expected to remain high in these conditions," the company said. "There is the probability of further deterioration if the current housing market distress continues and further impacts the broader economy." In an advisory to investors, HSBC warned there is evidence of "changed customer behavi...

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