HSBC write-down

HSBC Takes $3.4 Billion Charge in U.S.

Excerpt:

LONDON (AP) -- HSBC Holdings PLC will take a $3.4 billion charge against third-quarter profits because of accelerating losses at its HSBC Finance Corp. mortgage business in the United States, the company said Wednesday.

That is $1.4 billion (960 million euros) more than expected based on first-half trends, and the bank said it was shutting another 260 branches in the U.S. consumer finance division.

HSBC warned that the subprime crisis could deepen and said further volatility as a result of the credit crunch was ''more than a remote possibility''

''There is the probability of further deterioration if the current housing market distress continues and further impacts the broader economy,'' the company said.

The 2.3 billion-euro charge follows last year's $10.6 billion bad debt exposure, which led to HSBC's first-ever profit warning.

Comment: HSBA.L ... trades on the NYSE as HBC