US loan crisis is unlikely to affect the UK
In response to recent news regarding sub prime loan lender New Century Financial, Barclays Bank has announced that it will not be affected seriously by the situation.
New Century has recently been delisted from the new york stock exchange and is required to pay back £464 million in sub prime home loans instantly. Barclays declared that its association with the loan lender did not pose any real threat to the bank.
Their have been fears that the situation in the US could spill over to the UK, however analysts do not expect this to happen. The HSBC has reportedly lost over 10 billion in 2006 due to loan defaults and miss payments in the sub prime market.
