Us Loans Fears May Have a Knock-On Effect

The ScotsmanMarch 14, 2007

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Summary


FEARS of a fallout for the US economy and Wall Street from sub- prime bank lending have risen in the wake of the suspension in trading of the second-biggest American player in the sector.

Following HSBC's bombshell profit warning due to its exposure to the sector, trading was halted in New Century Financial this week as it is said to be on the edge of liquidation.

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Us Loans Fears May Have a Knock-On Effect

New Century's suspension, ordered by the New York Stock Exchange, came after it said its banks had cut off credit or threatened to do so.

Wall Street was off about 80 points in early trading yesterday on the resulting jitters.

"There's a lot of concern about the s...

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