News Tag: sub-prime
March 17, 2010
The full extent of UK mortgage fraud in the lead up to the credit crisis is probably as yet unknown and signs of economic recovery have prompted the National Fraud Authority (NFA) to remind lenders that they must continue to combat the crime.
According to the NFA, almost £144 billion was loaned in mortgages in 2009, representing an attractive target for criminals.
The ...
Mortgage fraud threat as economy recovers
by Gill Montia
June 24, 2009
The Financial Services Authority (FSA) has reported on its recent review of sub-prime lenders who are closed to new business, and on the third parties they instruct to handle mortgage arrears and repossessions.
The study found that both were operating "an approach focused too strongly on recovering arrears without reference to the borrower's individual circumstances".
Failings included being too ready to take ...
Sub-prime lenders too focused on recovering arrears
by Gill Montia
June 19, 2009
The Government has announced an inquiry into the UK mortgage market, focusing on arrears, repossession and access to mortgage finance.
The Treasury Select Committee will undertake the study which will look at the impact of the recession on existing and potential homeowners.
MPs will collect lenders' statistics on current arrears and their forecasts for medium-term trends.
They will also consider access to mortgage finance ...
MPs to commence mortgage market inquiry
by Gill Montia
May 5, 2009
UBS, which is Switzerland's largest, bank, has reported a first quarter loss of SwFr1.98 billion (£1.2 billion).
The bank said the losses were attributed to write-downs on risky investments. However the loss was less than the SwFr9.5 billion reported for the fourth quarter of 2008.
The Swiss bank is among one of the worst hit victims of the sub-prime crisis due ...
UBS reports first quarter loss of SwFr1.98bn
by Kay Murchie
April 15, 2009
Switzerland's largest bank, UBS, is to wield the axe on another 8,700 jobs.
Oswald Gruebel, the chief executive appointed to restore the bank’s reputation, said the bank will become smaller and there will be cuts.
The jobs are set to go by next year in a major cost-cutting programme after the bank announced losses of SwFr2 billion (£1.2 billion) for the three months ...
Thousands more job losses at UBS
by Kay Murchie
February 10, 2009
Swiss banking giant, UBS, has reported a full-year loss of SwFr19.7 billion (£11.3 billion) following a turbulent year in the banking industry.
Furthermore, the bank, which is Switzerland's largest, reported a fourth quarter loss of SwFr8.1 billion.
UBS said it plans to refocus on its domestic market after a turbulent year overseas and is to create two new business units - wealth ...
UBS reports annual loss, further job losses
by Kay Murchie
November 21, 2008
US banking giant, Citigroup, is rumoured to be in merger talks with after its shares plunged 26% yesterday amid fears about its financial viability.
Shares in the bank were trading at $54 two years ago, however, the shares closed yesterday at $4.71.
The bank, which is one of the largest banks in the US, announced plans to slash 52,000 jobs earlier this ...
Citigroup in sell-off and merger rumours
by Kay Murchie
November 17, 2008
US banking giant Citigroup is to slash 52,000 jobs, far more than analysts had predicted.
The job losses are in addition to the 23,000 staff cut already this year and the total 75,000 job losses represent a reduction of approximately 20% of its workforce, leaving it with 300,000 jobs globally.
The bank, which is one of the largest banks in the US, has ...
Citigroup slashes a further 50,000 jobs
by Kay Murchie
November 14, 2008
Royal Bank of Scotland (RBS) adds to the thousands of job losses in the UK this week by announcing that it is to axe 3,000 staff from its global banking and markets division.
The news of the job losses follows a week of cuts after JCB, one of the largest construction equipment manufacturers in the world, is set to axe almost 400 jobs.
Leyland, ...
RBS to axe 3,000 jobs
by Kay Murchie
November 10, 2008
Banking giant HSBC has revealed that losses have soared by $700 million to $4.3 billion (£2.7 billion) in the third quarter due to bad debt charges relating to the US sub-prime mortgage market crisis.
This takes its total impairment since the US housing market crisis first emerged in late 2006 to approximately $23 billion.
Furthermore, the bank added that the turmoil in the ...
HSBC hit by further bad debts
by Kay Murchie
August 12, 2008
Switzerland’s largest investment bank, UBS, has announced its intention to split itself into three divisions after it revealed second quarter losses of SwFr358 million (£173 million).
The bank’s sub-prime debt write-downs in the quarter totalled SwFr5.5 million. However, this was much less than the SwFr11.54 billion it lost in the first quarter.
The bank again blamed the losses on its investment in securities ...
UBS announces further sub-prime losses
by Kay Murchie
August 10, 2008
America’s largest mortgage finance company, Fannie Mae, has revealed a net loss of $2.3 billion (£1.2 billion) for the second quarter, compared with a profit of $1.97 billion (£1.02 billion) last year.
The loss is a direct result of the problems in the US housing market and the sub-prime crisis, as borrowers defaulted on home loans.
The ...
US Fannie Mae in the red after loss of $2.3 billion
by Kay Murchie
July 23, 2008
One time subprime mortgage specialist, Edeus, has taken the unusual step of offering cash-back to selected customers who redeem their mortgages.
The lender closed its doors to new business last year and has been struggling to sell its loans to investors in mortgage-backed securities.
Much of the debt is in the sub-prime sector and the market for this is virtually dead.
The firm ...
Sub-prime lender offers cash-back on mortgage redemptions
by Gill Montia
April 25, 2008
Nomura Holdings, Japan's largest securities brokerage group, announced today that it has incurred losses in the fiscal year ended March, due to sub-prime loan-related losses.
Nomura posted a three-month net loss of 153.9 billion yen (£745 million, $1.47 billion). Revenue dropped 22.2% to 1.59 trillion yen.
It is the latest in a long line of financial institutions to report losses linked to ...
Japan’s Nomura Holdings hit by sub-prime losses
by Kay Murchie
April 10, 2008
A report from the International Monetary Fund (IMF) shows that British banks will have to take an extra £11 billion from sub-prime losses - in addition to the £9.6 billion write-downs already announced.
UK lenders are sitting on far larger undisclosed mortgage-related losses than its European counterparts, according to figures in the Global Financial Stability report.
In comparison, lenders in ...
Further sub-prime losses expected in British banks
by Kay Murchie
