US mortgages Easy money hits home with lenders facing £250bn losses." The collapse in sub-prime loans threatens the big banks that financed brokers While the crisis in the loans market has had devastating effects in many US households, it now risks reverberating throughout the financial system.....Many of the low-grade loans are believed to be held by US lenders caught up in the collapse of the sub-prime mortgage market. Some of the world's biggest banks supported the loans sold by Mr. Sadek and other brokers. Citigroup, Morgan Stanley, Lehman Brothers and JP Morgan Chase in the US and HSBC and Barclays are just some of the lenders sitting on huge losses. A report by analysts at Lombard Street Research has estimated that the crisis could knock a hole in the banks' assets of up to £250bn. Few banks have so far assessed the extent of their losses, but they could soon be forced to address this issue."