|
|
Article: British banks face a new mauling from mortgage defaults by US middle classes ; BANKING
- Article from:
- The Evening Standard (London, England)
- Article date:
- February 6, 2009
- Author:
CopyrightCopyright 2009 Evening Standard - London. Provided by ProQuest LLC. (Hide copyright information)
|
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.
Credit rating agency Moody's has set alarm bells ringing by
downgrading the value of Alt-A debt because it has seen an