Chinese banks admit to subprime exposure

[lovuian]

http://feeds.bignewsnetwork.com/?sid=276462

Three of Asia's biggest banks, including state-run giant Bank of China, have revealed bigger than expected exposure to the U.S subprime mortgage crisis.

The news has prompted fears that Asian banks, regarded as risk averse after the Asian financial crisis, are not as immune as investors had hoped from the subprime meltdown.

Bank of China and its BOC Hong Kong arm reported a combined US$11.25 billion in subprime-related holdings late on Thursday, while Singapore's DBS Holdings Group Holdings acknowledged it had US$1.6 billion in holdings of collateralised debt obligations, nearly double the exposure it initially declared
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All I can say is WHOAH and this subprime is taking everybody down Europe China and US

[Viva_La_Revolution]

1. Like during the Great Depression...

it didn't effect just us...

[lovuian]

2. in the Billions and you know they are under reporting

this is really ugly
lots of theives in the Subprime biz

[Quantess]

3. This bad news is most likely uglier than they are admitting, as is their M.O. n/t

[Captain Angry]

4. There was no way they DIDN'T have exposure.

With the huge increase in "Asset" backed securities, some were bound to be bought by Chinese banks.

Some people didn't know what they were buying. But they saw others buying these securities and making money, so they jumped in.

The bond rating firms should all be brought up on charges. They were handed a bundle of subprime mortgages, and decided they were investment grade. Each individual mortgage had a chance of default, but the bundle of them didn't? Come on.

When a rating firm says this bond is rated AAA, or B, or any other investment grade level, pension funds, money markets, and other conservative portfolios end up having significantly more risk than they're supposed to.

It's crap.