HSBC Holdings Plc will hasten the run down of its portfolio of U.S. mortgages with more sales of loans to hedge funds, potentially allowing it to bring an end to its disastrous U.S. subprime foray within three years. Europe's biggest bank, which has been reducing a $118 billion book of U.S. consumer loans it no longer wants since 2008, said on Monday when it announced first-half results the portfolio was down to $27 billion.That was down $8 billion in the past year as the bank accelerated the process by selling portfolios of mortgages to specialist hedge funds and other investors. It said more sales are underway.HSBC has been cutting back in the United States since its $15 billion purchase of Household International in 2003 left it as one of the biggest subprime lenders when the U.S. housing market crashed in 2007. It racked up losses of $60 billion from bad loans in North America from 2007 to 2012.Running down the massive book of consumer loans was expected to take a decade or more, yet the bank's latest update indicates it is ahead of that timescale - a significant development given it frees up capital to give the bank more strategic options.
HSBC Holdings plc (HSBC) is a global banking and financial services organizations. Shares of HSBC fell by 0.5% or $-0.27/share to $53.43. In the past year, the shares have traded as low as $48.86 and as high as $56.96. On average, 1366460 shares of HSBC exchange hands on a given day and today's volume is recorded at 60225.
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