UK Banks under pressure to reveal Bad Credit Mortgage losses

Banks in Britain will this week come under fire to reveal the extent of their losses following the worldwide crack down on Bad Credit Mortgages and it is estimated that the US annex of HSBC will have to write off a further $1bn.

HSBC, who are already under attack from an ‘activist investor’, are expected to re-evaluate it’s mortgage portfolio, in particular their Bad Credit Mortgages.  This could also spark the pressure on Stephen Green to step down as chairman.

Barclays is also under increasing strain following the suspension in its share trading on Friday, after the bank’s value fell by 9%, and the several reports that claim Barclay’s are harboring huge undisclosed amounts in debt due to the capitalisation in Bad Credit Mortgages.  Despite Barclay’s flat denial of problems, they are set to meet with auditors PricewaterhouseCoopers, adding fuel to the fire surrounding their amounting debts.  It is feared that the losses to the bank due to their borrowing for Bad Credit Mortgages could be as much as 100 times the originally estimated figure of £70m. 

Speculation surround the actual amount in debt has seen a dip in Barclay’s value by a massive 35% and the Royal Bank of Scotland’s value drop by 39%.  RBS have blamed the loss on the lack of willingness by boss Fred Goodwin to speak out on the debt caused by Bed Credit Mortgages. 

Shareholders are currently being kelpt at bay, by prompt admission of losses by banks, but surely there is only a certain amount of time before the fall out begins.