Is Halifax HBOS going bust

A_fiend_for_life

I suspect they'll weather it somehow. Though didn't they do a u-turn recently?

Given that inflation has gone up to 4.7 % wouldn't that mean higher base rate from the B of E and higher than base rate increases on borrowing? That seems to be the usual strategy.

They'll also be picking up a fair bit in student loans, not sure how significant that is in the grand scheme of things. I am sure there are eyeballs watching for malicious rumours though.

I see my credit and bank charge reclaim stretching further away though.

baby_boomer

They are having a hard time because speculators who don't own the shares are selling them short, in the expectation that the sales will become a flood and the speculators will make a killing.

HBOS raised £4bn extra capital recently.

Yes it deals in mortgages, but other people's negative equity doesn't always translate into a loss for HBOS - unless unemployment in the UK rises sharply.

What we don't know - does HBOS know? - is the extent of any exposure to the US mortgage market through the purchase of these daft package mortgage investment instruments.

Milarky

The predictions of the HBOS-boss just a few days ago that it would take at least 18 months more to turn around the mortgage market in the UK (and see any kind of increase in net lending again) - based on the US market - which started to fall earliest finally hitting bottom... ..that seems postively panglosssian now

(Also, he must have been expecting to still be in post in 18 months time when he said it..)

pizzagirl

Yant1 wrote: »

Effect of Lehmans collapse -

$463 million Aozora Bank (Japan)

$289 million Mizuho (Japan)

$275 million Citibank (Hong Kong)

$250 million BNP Paribas (France)

$231 million Shinsei Bank (Japan)

$185 million UFJ Bank (Japan)

$177 million Sumitomo Mitsubishi Bank (Japan)

$140 million Svenska Handelsbanken (Sweden)

$100 million KBC Bank (Belgium)

$93 million Mizuho Corporate Bank (Japan)

Largest UK creditors

$77 million Standard Chartered

$75 million Lloyds Bank

Source: Reuters

More lies being spread, HBOS isnt affected by Lehmans, Llyods TSB is affected by peanuts.

This is a nonsense post. No-one has evre suggested that Lehmans owed money to HBOS. The reason why HBOS' share price has dropped so much is because of the way HBOS has to raise money from the retail money markets. It has to do this more so than other UK banks and that is why its share price been affected more than other UK banks

stevetodd

MrHelpful wrote: »

Just been thinking about this after the 10pm news and I am think this is def a possibility as they are very reliant on mortgages and the lending market.. I have a bit of money with them - may be wise to spread it wide in the current market esp with the poor service Halifax is showing to current customers.

It's much worse than that I was reading in VIZ that we are about to be invaded by Marsians

The_One_Who

The government simply wouldn't let the largest mortgage provider and one of the biggest banks go bust. They waded in to the Northern Rock crisis and although much smaller, they have set a precedence. I doubt a larger bank like HSBC would take them over, but you never know.

The media is out to cause panic really. The more they go on about it the worse it is going to get.

Ice_2

shares are dropping fast...HBOS down 40%...

sanfly

The_One_Who wrote: »

The media is out to cause panic really. The more they go on about it the worse it is going to get.

Couldnt agree more, when will we learn to talk things up and not down, the media should be ashamed of themselves, to them it seems bad news is the only news!

nico26

On sky news it has just said the FSA have scrutinised HBOS and it is a sound bank

freddysmith

LLoyds to buy Hbos