Big names pull back

Posted on Posted in INDUSTRY NEWS

Citigroup and HSBC are moving away from sub-prime finance as a result of the global credit crunch, the Guardian has reported.

Citigroup is believed to have decided to sell CitiFinancial and similarly HSBC is thought to be reviewing its HFC Bank – both offer financial assistance to individuals rejected by high street banks.

The Royal Institute of Chartered Surveyors (Rics) said the credit market turmoil would "have a negative impact on investment into commercial property assets with capital values declining across all areas".

Both lenders have had difficulty because of their exposure to US sub-prime housing markets. Citigroup however, has been forced to write off £9 billion, the biggest loss in the firm’s history.

Despite these difficulties, there have been major commercial property deals across London, including a German fund buying One London Wall and huge investments from the Middle East.

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