British Banks Face a New Mauling From Mortgage Defaults by Us Middle Classes ; Banking

Summary

---

AFTER subprime comes Alt-A. Fears are growing that British and European banks will be hit by a second wave of huge losses, caused by defaults in the US on what are known as Alternative-A mortgages.

Ranking between prime and subprime, Alt-A loans were taken out by the middle classes. As the recession deepens and more whitecollar workers lose their jobs, the number of repossessions in more well- heeled areas has soared. British banks Lloyds, Barclays and Royal Bank of Scotland have total Alt-A exposure of at least Pounds 12.5 billion.

See the full content of this document

Extract

---

British Banks Face a New Mauling From Mortgage Defaults by Us Middle Classes ; Banking

Credit rating agency Moody's has set alarm bells ringing by downgrading the value of Alt-A debt becau...

See the full content of this document

---