HBOS / LLO TSB Merger - Opinions

oldwiring

minimike2 wrote: »

Two huge companies like that getting together.....talk about lack of competition. HBOS are using the unfounded talks of thier instability to cash in on being able to make such a deal appear viable.

I can assure you also, that there would be hundreds of branch closures and redundencies as a result. We already have a situation from the Lloyds / TSB merger where you have tow branches within touching distance (I know of one area where there are two branches opposite each other), so with all the BOS / Halifax branches thrown into that as well, you could see areas with not one, but two branch closures.


Its wrong.


On the other hand, if it meant getting rid of C&G in favour of HBOS mortgages then that wouldn't be a bad thing.

I do not think in normal times anyone would disagree with you about competition, but unless you are a close descendant of Rip van Winkel, you must have :rolleyes: slightly realised that these are not normal times. Or perhaps you have financial sado-masochistic tendencies, willing to see further instability, more banks and businesses go under for the sake of the ideals of competition.

Ian_Griffiths_Halifax

Thousands of jobs could be at risk.

http://www.mortgagestrategy.co.uk/cgi-bin/item.cgi?id=173098

minimike2

The thing is OW...the merger is totally unnecesary. HBOS is not in trouble as has been speculated. Nor is lloyds. Its conjecture that caused the run on HBOS shares. They are not another NR.

Ian_Griffiths_Halifax

minimike2 wrote: »

On the other hand, if it meant getting rid of C&G in favour of HBOS mortgages then that wouldnt be a bad thing.

That is soooo true.

mystic_trev

minimike2 wrote: »

The thing is OW...the merger is totally unnecesary. HBOS is not in trouble as has been speculated. Nor is lloyds. Its conjecture that caused the run on HBOS shares. They are not another NR.

The trouble is that 'shorters' have been driving the share price down. This in turn has been giving the 'wholesale market' the jitters, which in turn will lead to funds drying up. There's no easy solution.

Frugaldom

minimike2 wrote: »

The thing is OW...the merger is totally unnecesary. HBOS is not in trouble as has been speculated. Nor is lloyds. Its conjecture that caused the run on HBOS shares. They are not another NR.

That would explain why our local branch now only opens 3 days a week and the staff need to go and work in a neighbouring branch the other 2 days. The neighbouring branch (about 10 miles away) is only open 2 days a week now. I sense at least 2 closures and perhaps the arrival of a visiting bank bus soon. The press article I read says they won't accept any compulsory redundancies, but it doesn't say they won't invite voluntary ones or relocations. It's all in the wording - my motto is, 'always read the small print and between the lines'.

straddie

minimike2 wrote: »

The thing is OW...the merger is totally unnecesary. HBOS is not in trouble as has been speculated. Nor is lloyds. Its conjecture that caused the run on HBOS shares. They are not another NR.

You would probably have said the same about Lehman Brothers a few weeks ago. Whilst it's true that HBOS are not technically in trouble, all the conjecture around them can result in a self-fulfilling prophecy; although HBOS may be solvent as of today, if they lose the confidence of their creditors and can no longer access funding (and they need to refinance £100m of loans very soon) then it could go under very easily. Once you lose the confidence of your creditors you've had it. If all the speculators backed off then things would be just fine, but every effort to achieve that so far has failed, hence the need for drastic action.

At the end of the day, I suspect that the two boards were forced together by the FSA (and a certain Mr Brown trying to look like he's achieving something) rather than choosing to go into this deal of their own accord.

Nice_Username

oldwiring

Perception, dear boys, perception drives things at the moment and unfortunate unpalatable decisions will be made.

EdInvestor

Speaking as a Lloyds shareholder, it all boils down to the price to be paid.

How much is HBOS worth?

Possibly not a lot.