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Big banks decline exposure to US sub-prime market

by Staff Reporter6 minute read

The big four banks have denied any direct link to the US sub-prime lending market despite their exposure to ailing US mortgage lender Countrywide Financial, the Australian Financial Review reported today.

A report released by Goldman Sachs this week identified CBA, NAB, ANZ and Westpac as four of 40 global lenders that provided a total lending facility of US$11.5 billion ($13 billion) to Countrywide.

CBA and NAB were named as having the most exposure of the four – around US$268 million ($300 million) each.

According to the Australian Financial Review, spokespeople for all banks declined to discuss Countrywide but all maintained that they had no direct US sub-prime exposure.


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