Countrywide, Citi, HSBC, AIG among top subprime lenders: study

Top 25 lenders in the US, including Countrywide, Citigroup, HSBC and AIG, were responsible for nearly $1 trillion or about 72 per cent of the subprime loans, according to new study by independent research organisation Center for Public Integrity.

The study analysed 7.2 million ''high interest'' loans made from 2005 through 2007 by these companies that accounted for about 72 per cent of high-priced loans reported to the government at the peak of the subprime market.

Securities created from subprime loans have been blamed for the financial market collapse and the subsequent economic meltdown from which economies world over are yet to recover.

The study conducted by the US-based non-profit organisation Center for Public Integrity (CPI) has revealed that these 25 entities accounted for a whopping 72 per cent of subprime loans during the 2005-07 period.

Countrywide Financial Corp, with subprime loan losses of around $97.2 billion, topped the list, followed by Ameriquest Mortgage Co/ACC Capital Holdings Corp with loan losses of around $80.6 billion.

New Century Financial Corp, with loans losses of $75.9 billion was placed third while First Franklin Corp/National City Corp/Merrill Lynch & Co came fourth with reported loan losses of at least $68 billion.