HOW BANKPHB LOST N7BILLION TO THE USA SUBPRIME CRISES

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BankPHB may have lost the equivalence of N7billion directly to the United States of America’s property sector crises. Sources in the bank informed Fortune and Class Weekly that the bank had excitedly approved a proposal by one of its customers that wanted to invest in the USA’s property market in the aftermath of the subprime crises when prices of property started sliding.

The source confided that the customer had argued when the downward spiral of the USA’s property market commenced in its first phase that taking position in the sector by investing when prices had gone down would provide ample opportunities for profit taking. The customer who is said to be familiar with the USA’s property market asserted that the price slide would only last a short while.

To position in the property market by investing when prices initially dipped, the customer asked for a N14billion facility and approval was given. “It turned out that soon after the N14billion was invested, property prices literally went on a free fall. By the time the facility was called in, the value of the N14billion investment was in the region of N7billion.” The BankPHB insider said.

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