sky = hbos - lloyds deal done!

meester

sarkin wrote: »

This is where its at

http://www.housepricecrash.co.uk/forum/index.php?showtopic=87630

fantastic post one of the best I have read over there

which post? There are 11 pages of them.

Generali

dopester wrote: »

Yeah. I hope the press pick up on it and arrange to publish it. Could cheer the City and traders up for a day and stop meltdown. It is top-notch.

I think it came from FT Alphaville. It was certainly posted on there.

BiggaThanBen

Lloyds House Price Index ?

BiggaThanBen

mystic_trev wrote: »

Hope this works?

LOL
Shouldn't it be the other way around ?

BiggaThanBen

Dan: wrote: »

I wonder what it will now be called?

LloydsTSBHBOS

" .. The new bank will be called Lloyds Halifax .."
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4776539.ece

Ian_Griffiths_Halifax

Dan: wrote: »

I wonder what it will now be called?

LloydsTSBHBOS

Could be LESBOS

dopester

Let HBOS suffer for the aggressive recklessness of their decisions.

How much of the money they gorged from others banks and money markets went in to pumping out fat mortgages, year after year, in the HPI craziness? Contrast it to Lloyds and the old-school banker.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/18/ccgordon118.xml

HBOS has been caught with its pants down because, like Northern Rock, it borrowed heavily from other banks and institutions to fund new mortgages, meaning it was, effectively, lending out other people's money rather than lending money deposited by savers.

The wheels of the HBOS wagon gradually came loose as the money from other banks dried up in the credit crunch, leaving HBOS with a reported £198 billion cashflow problem.

Even though HBOS is Britain's biggest savings institution, with £258 billion in deposits, City traders have seized on its apparent weakness to drive down share prices to the point where it may have no option but to accept a takeover bid.

dopester

It is ironic. HBOS getting taken over because it borrowed out of its depth from other banks and money markets.

And it just goes to show how they underestimate it. Only 12 days ago we were given HBOS counsel of what to expect, with the revelation that not only do they have to look at our local economy in setting out their policy and lending - but now they come to realise have to consider the economic picture around the world.

Just 12 days later and HBOS is in need of a merger for the stability of the system.

Credit crunch will last another 18 months

By Alastair Jamieson
Last Updated: 9:43am BST 06/09/2008

Britain’s credit crunch will last for at least another 18 months, according to the head of the country’s biggest mortgage provider.

Last Updated: 9:43am BST 06/09/2008


Britain’s credit crunch will last for at least another 18 months, according to the head of the country’s biggest mortgage provider.

“My personal view, for what it’s worth, is that it will take 18 months to play through the system,” he said. “It’s going to take 18 months before US house prices have started to rise again - which is what’s required for banks to have the confidence to start lending again. It will take a long time to play out.”

http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/09/06/cncrunch106.xml

18 months ! Yes, house prices rising again and back to hard big-time lending.

At one point in the television interview with Peston on which the article was based, I thought Andy Hornby was going to shed a tear when he discussed how his own wealth invested in HBOS shares had taken a hammering. I take no pleasure in it, but neither did I ever believe such furious HPI over the past 11 years was good for the economy.

baby_boomer

baby_boomer wrote: »

Silly, irrelevant question

Is the new combined institution actually better capitalised, or just bigger?

Thinking about this overnight, there is at least the prospect of rebuilding capital over time through the savings made on inevitable job cuts.

It was scary to hear one analyst claim that the world had "run out of capital".

So the little people are going to have to pay for the mistakes and greed of people at the top, incompetent regulators and hedge funds.

Generali

Lots of jobs will go as a result of this, mostly among HBOS staff if my experience of mergers is anything to go by.

Of course it'll be 'on merit' but that'll mean, "You 85 from the former HBOS side and Lazy Jim from Lloyds"