Stephen Green, executive chairman of HSBC, was only a few weeks ago still arguing that the 2003 acquisition of Household International for $15 billion (£7.2 billion), the bank's biggest ever purchase, made financial sense. That line looks ever harder to hold as the US sub-prime bank continues to haemhorrage money.

HSBC is now writing off mortgage and credit card loans to struggling Americans at the rate of $38 million a day and today's trading statement makes clear the pace could get still worse if US house prices continue to fall.

Investors this morning chose to see the positive side. The rest of the bank is performing well and the shares were marked 4 per cent higher.

Rebel activist shareholder Knight Vinke has seized on the latest news as fresh evidence of the flaws in HSBC's strategy. It suggested to HSBC that it dispose of Household much earlier this year, when it might have been sellable, and was sent away with a flea in its ear.

Stephen Green, executive chairman of HSBC, was only a few weeks ago still arguing that the 2003 acquisition of Household International for $15 billion (£7.2 billion), the bank's biggest ever purchase, made financial sense. That line looks ever harder to hold as the US sub-prime bank continues to haemhorrage money.

HSBC is now writing off mortgage and credit card loans to struggling Americans at the rate of $38 million a day and today's trading statement makes clear the pace could get still worse if US house prices continue to fall.

Investors this morning chose to see the positive side. The rest of the bank is performing well and the shares were marked 4 per cent higher.

Rebel activist shareholder Knight Vinke has seized on the latest news as fresh evidence of the flaws in HSBC's strategy. It suggested to HSBC that it dispose of Household much earlier this year, when it might have been sellable, and was sent away with a flea in its ear.

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