HBOS/Lloyds TSB merging

project500

Lloyds TSB may just be biting off more than it can chew with this one!

TehJumpingJawa

edwinac wrote: »

The compensation scheme is already worthless for that very reason.

It is said that the equivalent US scheme, the FDIC, which "insures" retail deposits up to the value of US$100,000 is backed by reserves of less than a penny on the dollar.

The Emperor's New Clothes, any one?

See: Guarantees Are Worthless,When the System Is Bankrupt, John Hoefle, Executive Intelligence Review, Sept 5, 2008

Nice bit of Britain hating going on in the last 2 paragraphs of the 2nd page of that pdf :rotfl:

Heres me thinking Britain is the pet poodle sat on Americas lap doing tricks for the odd doggy treat!:p
Turns out we're actually the puppet master..... with our hand stuck up bush's........ I don't want to think about it =|

competitionscafe

HBOS shares slide on City doubts about merger talks with Lloyds:
http://www.citywire.co.uk/personal/-/news/markets-companies-and-funds/content.aspx?ID=314598&re=3737&ea=53886

LongTermLurker

TheDean wrote: »

If they were to merge would either set of customers be in for a windfall?

No, they're banks not mutuals - they have shareholders, and shareholders will either benefit or lose.

(edit - sorry, didn't notice this thread had 4 pages - things are moving fast today)

StateOfPlay_2

This global credit crunch has been a blessing for Lloyds, they have been wanting to spend their money for a few years now. They tried Abbey and Northern Rock but were blocked, and there were rumours they were going to buy in Europe instead.

And now the credit crunch is happening, not only are they allowed to finally spend all their money, but they will probably get sweeteners from the Govt to do so!

The biggest losers in all of this will be the staff that work for both of these organisations. Some will prosper with new opportunity, but many will lose their job or be put into an untenable position until they resign.

dunstonh

project500 wrote: »

Lloyds TSB may just be biting off more than it can chew with this one!

Lloyds have been after another UK bank for a long time. They would have bought HBOS at £10 a share if they had the chance a few years back. This is an absolute bargain for them long term.

As Stateofplay says, they tried Abbey, they tried Northern Rock (bet the Govt had wished they hadnt had that blocked now) and really stood little chance of the OFT not blocking any UK purchase. Now they, HSBC and Santander can mop up a bunch of smaller banks on the cheap because its politicially easier for the Govt to deal with.

Sam37

dazza-s wrote: »

I'm wondering when the merger takes place what happens to my regular saver account. I am paying into it 500 a month for the special 12% interest rate. Wondering if I get that interest at the end. I should do as that what the agreement is and as I understand it when banks merge they take on the current fixed interest agreements?

I've had a look at the deposit accounts conditions (for monthly/regular savings accounts etc).

Clause 19 ''When can we change these conditions and the interest rates?''
does state in 19.1 k that this can happen when taking over or being taken over by another bank.

Sorry very fuzzy wording... above seems to apply to the conditions, not the rates.

It states in 19.4 that fixed rates won't be changed for the term of the fixed rate, and then somewhere else (19.5) that rates can be changed for any valid reason (that's a nice one!). This would have to apply to variable rates only, as otherwise it would literally contradict 19.4.

mossy_posse

I have savings with HBOS. Can anyone tell me what will happen to my savings if they go under? Don't want to follow the Northern Rock crowds but if I have to I will!!

Lokolo

Nothing will happen with the savings if they merge.

mossy_posse

Thanks for your quick response.
If the merger falls through and it doesn't look good for HBOS, do you know what would happen if they do go Bankrupt?