Brit banks suffer daily $60m loss

19 November 2007

Two of Britain's banking giants have announced fewer losses this week due to the US sub-prime crisis, although they revealed that they have been losing around $60 million per day combined recently.

This week, HSBC and Barclays each revealed $6 billion writedowns due to the US housing crisis and credit crunch, which shows that the situation has stabilised although investors remain sceptical.

"The message that we've heard from both of them is things could still get worse, there could still be other things to come in 2008," Colin Morton, fund manager at Rensburg Fund Management, told Reuters.

"Barclays is probably as good as we could have expected, we've got a good idea of their position and what they've written off, but some people are still worried there could be more writedowns to come," he added. "Barclays hopes it has written off as much as it needs to, but whether the market is in the mood to accept that it's all behind us is very debatable."

The sub-prime problems have spread into the British banking sector over the last four months, leading the UK bank sector to drop by 13 per cent since the start of August.

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