HSBC Joins BIS And Lombard Street In Economic Alarm

His comments highlighted the widespread unease among banking executives after five years of benign credit conditions and the growing amounts of leverage in the financial system.

This has been particularly notable in the collapse of the subprime mortgage market in the US, which this year triggered HSBC’s first profit warning.

Mr Green said he was also concerned about the difficulty of bailing out institutions affected by a blow-up because risk was now so widely spread throughout the financial system.

He said: ‘When your risk has been parcelled up hundreds or thousands of times, it’s much more difficult to orchestrate a reconstruction of a difficult situation and, therefore, the write-off then risks being worse than it needs to be.'

http://mparent7777-2.blogspot.com/2007/06/american-banking-system-faces-imminent.html
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See also Diogenes postings of:
1) Banks 'set to call in a swathe of loans'
http://www.vivelecanada.ca/article.php/20070626224456307

BIS warns of Great Depression dangers from credit spree
http://www.vivelecanada.ca/article.php/20070626032718729