Spitzer investigates HSBC over lending to the poor

[emad]

April 29, 2005

Times
By Caroline Merrell and Abigail Rayner



HSBC, Britain’s biggest bank, is being investigated by Eliot Spitzer, the New York attorney-general, over allegations that it charged poor borrowers higher interest rates than its other customers.

Mr Spitzer has sent letters requesting information from banks that operate in the “sub-prime” market. Sub-prime lenders offer personal loans, credit cards and mortgages at high interest rates to those that are unable to get credit from mainstream lenders.

Among those being targeted by Mr Spitzer are HSBC and Citigroup, the world’s two biggest banks. JP Morgan Chase is also thought to have been asked to provide information by Mr Spitzer’s office.

HSBC yesterday confirmed that it had been contacted by the attorney-general’s office, and said that it was complying with requests to provide data, but would not comment further.

http://www.timesonline.co.uk/newspaper/0,,174-1590234,00.html

[Mary in KC]

1. GOOD FOR HIM!

I work in mortgage banking and the fraud in that area is unbelievable.

It's about time someone is trying to put the heat on those people. It really is a huge crime.

[Roland99]

2. Citigroup...where Wolfowitz worked. Who now heads the World Bank

[emad]

3. Go Spitzer! Ace successor to Bob Morgenthau and one for Dems

to keep their eye on for 2008.