Citi, HSBC among biggest subprime loan originators
Press Trust of India / Washington May 11, 2009, 13:41 IST
As the world continues to reel under the financial turmoil that started with risky subprime lending, a new study has found that Citigroup, HSBC and AIG are among the 25 biggest originators of such loans worth about $1 trillion.
The study conducted by the US-based non profit organisation Center for Public Integrity (CPI) has revealed that these 25 entities accounted for a whopping 72 per cent of subprime loans during the 2005-07 period.
Topping the list is Countrywide Financial Corp which shelled out subprime loans worth $97.2 billion while CitiFinancial/Citigroup Inc' is at the 16th place and had generated $26.3 billion in such loans.
At the ninth spot, HSBC Finance Corp/HSBC Holdings Plc had raised $50.3 billion in subprime loans. According to the study, the entity has stopped lending now.
American General Finance Inc/American International Group ,with $21.8 billion subprime loans, was ranked 18th.
Wells Fargo placed at the eighth position which raised $51.8 billion in high risk loans.
"... The top 25 originators of the high-interest loans, accounting for nearly USD 1 trillion and about 72 per cent of industry-reported subprime loans during that period (2005 - 07)," the CPI said.
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