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House prices could fall for two years: Citigroup

(Agencies)
Updated: 2008-07-19 15:58

LONDON -- Citigroup chairman Win Bischoff has warned that house prices in Britain and the United States are likely to keep falling for another two years.

Special coverage: Subprime Crisis

Related readings:  HSBC head expects subprime woes to remain up to a year  US subprime debacle may spark 2-year recession  China should still be alert to subprime impact  US subprime cold could make Japan sneeze

The chairman of one of the world's most powerful banks told the BBC in an interview that he expects it will take two years for the markets to stabilize.

He also said he expected the credit crunch could continue through until 2009.

Bischoff told the BBC that there would be redundancies at the bank, which employs 12,000 people in Britain, and warned that some of them would be compulsory.

No further details were released of the interview which is due to be broadcast later on Saturday on the BBC News Channel.