At age 59, I was laid off as a sub-prime loan officer at what we call HFC in the US. I had been in the financial markets all of my life. At HFC/Beneficial/HSBC, Individuals would be pre-qualified by HFC according to certain criteria and then mailed "checks" to non-customers for as much as US$9000. All the person had to do was endorse theback (creating acknowledging a n UNSECURED loan would be created at a rate of at LEAST 30%apr). So the person would merely cash the check....and never make a payment. So while 30% unsecured might seem high, it is inconsequential when the true rate is 0%. These people would not give a whit about their credit scores, they just wanted this "unsecured fix" to continue to have a roof over their heads by using the $9000 to fund their adjustible rate mortgage!

WAYNE BEUGG, CHESTERFIELD, MISSOURI

The bottom line is that there has been so much fraud and conflict of interest in the US housing market in the last 6 years or so. As home prices rose faster than rockets, greed took over. Everybody and their grandma got in the game. Flippers came out of the woodwork (flippers being people looking to make a quick buck by buying a house, giving it a paintjob and then selling it for $100K more a few months later) and they are seriously leveraged.

Really, it's tough to assign blame soley to any one group. To a large extent borrowers are as guilty as the lenders and the real estate agents played along with great enthusiasm.

Also, something odd happened in the American psyche as the prices skyrocketed: people started thinking of that home equity as "savings" ignoring the fact that you have to borrow to get at that "savings" and the "savings" would have to be paid back. That's why we see so many brand spanking new SUVs and Hummers all over the place; home equity loans.

Frank Tillington, Longmont, Colorado, USA

What's (in part) happening in the States, is that people were going to home owners who were selling their house and tell them that they would buy the house at $50k or $100k OVER asking price, then they would get an appraiser to appraise it at the new value, get a loan for that amount, and split the $50,000 with the old owner. Then they walk away from the loan.

Several people have been indicted in Ohio and Florida for this, with perhaps several hundred more to come. It has been going on for some years now, and just recently have they decided to make such 'flipping' illegal.

It certainly isn't at fault for $11B in losses, but it does point to the risks of doing business in a nearly unregulated US market place.

Aaron Berger, Cleveland, Ohio

HSBC's huge successes in the 90's can be put down to one man- Sir William Purves.He understood Asian culture and mentality, the bedrock of HSBC business.
It has been downhill since Sir John Bond gave priority to America and changed the make up of the business.
Get rid of the U.S. business and move the Headquarters back to HK, I say. If the old ladies at the Bank of England are really fussed, give them the English bit to regulate.

Rajeev, hong kong,

Miserable experience since buying Household? Take a look where HSBCs revenues and income come from since buying it. HSBC had a tiny presence in the US market beforehand and now it's one of the largest contributors. Even with this stumble, the US divisions are still providing much needed cash flow and financial services (ok, not High Street banking) expertise.

Smart Money, Global Village,

Subprime mortgages are a major problem in the financial services in England. Borrowers using subprime lenders are in for a big surprise when interest rates start moving up in England. The mortgage books of the high street banks such as HBOS, Kensington, Northern Rock are all toxic waste. The meltdown of the self certification mortgage market and the subprime lender market in England will be worst that the US when the problems of the industry hit english shores.

Jimmy, London,

Uncle Sam is bankrupt! The American middle class has disappeared! Low paying jobs are hard to find! The best joke on the West Coast reads as follows: "What are our best exports to Asia? Jobs and empty containers!"
And you are telling me that British Banks still invest in the US of A?

Andy, Calgary, Alberta, Canada

Looks like HSBC management were dazzled by American smoke and mirrors tricks. I remember reading at the time that the Household IT systems were amazing and hence the risk of sub-prime loans was well managed etc etc. I say HSBC should stick to its knitting -Asia is where it has its base, reputation, world class workforce and the best chance to grow new business

TJ, UK,

HSBC is "successful" in Asia because in general it has monopolies which would not be tolerated elsewhere. From first-hand experience much of senior management is at best mediocre and often downright incompetent, but, as has been correctly stated elsewhere, they are shuffled about the world until they find a place to do least harm. Few of them understand banking.

All the talk of Sir John Bond being top class is nonsense - look out Vodafone shareholders say I.

Buzzbatter, Barkham, UK

I find this very amusing. I left HSBC France because they were too conservative. And I remember at the time, the manager telling me that caution was a hallmark of HSBC. With a bit of luck, some (less cautious) predator will now buy HSBC, and fire the management.

Sam Young, Paris, France

Another classic case of why European companies should avoid the siren call of America. They always get taken to the cleaners paying top dollar for dodgy assets. Too bad because HSBC has a superb Asian base and is profitable elsewhere. Still this is close to a buying point on a yield basis.

oldasiahand, Manila, Philippines