HSBC warned today that the subprime meltdown is spreading into credit cards and other types of consumer loans, says the NYT. The bank announced that it will be taking a larger write down than it forecast, due to the spreading delinquencies.

“We are seeing a re-evaluation of asset classes in U.S. real estate and this is going to continue,” HSBC’s chief executive, Michael Geoghegan, said on a conference call with analysts. “We’re not through the credit crisis yet.”
…
“Early stage delinquency rates in both cards and branch unsecured lending are also showing signs of deterioration,” HSBC said in a statement.

The bank will now be setting aside $3.4 billion to cover bad loans.

HSBC Takes $3.4 Billion Charge [NYT]
(Photo:Maulleigh)

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