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To: John McCarthy who wrote (71160)	11/13/2007 4:04:14 AM
From: elmatador	Respond to of 116555

Breakup Citi: The Telegraph reported that CIBC World Markets' financial services analyst Meredith Whitney has called for Chuck Prince's successors to break up Citigroup (NYSE: C). telegraph.co.uk

To: John McCarthy who wrote (71160)	11/13/2007 6:46:22 AM
From: westpacific	Read Replies (1) \| Respond to of 116555

No HSBC is in big trouble as well. In that you are very correct. The worlds largest bank...... -HSBC, which employs 56,000 people in North America, last month said it would shed 600 U.S. jobs with the closure of a mortgage office in Carmel, Indiana. The British bank, which bought Prospect Heights, Illinois-based Household International Inc. for $15.5 billion in 2003, has scaled back U.S. home-equity loans and ousted some of the unit's managers to cap defaults. -HSBC (HBC) shuttered its Decision One subprime mortgage lending unit -When you examine HSBC’s exposure to the subprime lending market in the U.S., you realize that the shuttering of Decision One is just the tip of the Iceberg. HSBC still has a sizeable portfolio of subprime auto loans, mortgages personal loans and credit cards through its Household Bank and Orchard Bank units. In fact, a report in the Boston Globe noted that HSBC doubled the number of credit offers it sent to subprime borrowers within the first half of this year. -The other aspect of HSBC’s exposure to the subprime lending market is that they’re one of the few major British Banks to target subprime borrowers in the UK, meaning, they have subprime exposure on both sides of the pond. Britain has its own subprime problems outside of ours, so it stands to reason that it’s just a matter of time before HSBC reports problems with subprime loans on its own shores. As a bank that originates subprime loans on both sides of the pond (as opposed to other banks that are originating on one side and perhaps investing on the other), HSBC is uniquely vulnerable to the subprime problem -Dump Household Finance, do whatever it takes to get out of that business, whether that means closing it down or selling it. At this point, the losses are mounting and it doesn’t make sense for them to hang on to that business, especially when the losses are on the verge of exceeding the original purchase price. ""Britain's biggest bank will reveal the additional provisions alongside a group trading update and third-quarter results from its US business on Wednesday, it said."" This story is only getting started. West