HSBC set to write off $1 billion

HSBC is set to write down $1 billion additional in bad US subprime mortgage debts. This further feeds the growing concern among investors that the write offs by the major banks and investment banks were "low balled". In a continued signal affirming the growing credit crisis, more banks are coming forward with "revised" upward figures for bad debt write downs.

Some have speculated that write downs could reach $1 trillion, which at that time seemed ridiculous, but now, I am not quite sure.

In a separate note, Countrywide Financial (CFC) death rattle has begun. Yet, Mozillo continues to sell. I joke every day that when CFC announces bankruptcy plans, Mozillo will continue to sell down at the $.25 level. Disgusting!