HSBC sells £383m of loans to US consortium

HSBC, Europe's largest bank, has sold £383m of secured loans to Sancopia Portfolios, a Luxembourg-based group set up by a consortium of investors led by CarVal Investors.

The loans date back to HSBC's disastrous purchase of U.S. consumer loans firm Household Finance in 2003. HFC Bank, part of HSBC, ran a small branch network in Britain making loans to people who had credit difficulties, but HSBC closed it to new business in 2009 and has been running off the portfolio.