Financial Times FT.com

HSBC hit by rise in US bad loan charges

By Peter Thal Larsen and Maggie Urry in London and Ben White in New York

Published: November 14 2007 09:58 | Last updated: November 14 2007 20:36

HSBC on Wednesday issued a gloomy outlook for the banking sector as it reported a sharp rise in US bad debt charges while indicating that emerging markets would not escape the credit squeeze.

In a trading update, the world’s second largest bank by market value said it had set aside $3.4bn (€2.3bn) for bad debts in its US consumer finance business, as problems in the subprime mortgage market spilled over into its consumer lending arm.

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