Lloyds/HBOS share price Monitor

agent_orange_2

"Sir Fred 'the shred' Goodwin is prepared to stand down"

Stand down, don't make me laugh. Goodwin, along with Varley and Diamond geezer of Barclays. they should be made to walk the plank.

sabretoothtigger

Lloyds TSB raises £400m in debt sale
Oct. 17 (Bloomberg) -- Lloyds TSB Bank Plc, one of the lenders making use of the U.K. government's bailout program, sold 400 million pounds ($691 million) of 10-year bonds.
The notes were priced to yield 225 basis points more than similar-maturity U.K. government debt, according to data compiled by Bloomberg. The notes aren't covered by a guarantee as part of the British rescue plan.
The U.K. agreed on Oct. 13 to provide Lloyds TSB, HBOS Plc and Royal Bank of Scotland Group Plc with as much as 37 billion pounds to replenish capital and kickstart mortgage lending. Banks that use the debt guarantee as part of the rescue plan will be charged an annual 50 basis points on the amount covered plus a further fee based on the average cost of five-year credit-default swaps, according to a U.K. Debt Management Office statement.
``It's better for Lloyds and the other U.K. banks to reward the investors with wider spreads rather than use the government guarantee scheme where possible,'' said Lucette Yvernault, who helps oversee 1.9 billion pounds as director of fixed income at Schroders Investment Management Ltd. in London. She declined to say whether she will buy the debt, citing company policy.
RBC Capital Markets and UBS AG managed the sale with London- based Lloyds TSB Corporate Markets, Bloomberg data show. A basis point is 0.01 percentage point.
Investors demand an average of 484 basis points to hold bank bonds in pounds rather than government debt, down from a high of 495 basis points on Oct. 13, according to Merrill Lynch & Co.'s Sterling Banking Index.
Moody's Investors Service ranks the bonds at Aaa, its top investment-grade rating. Standard & Poor's grades the debt two levels lower at AA.

They just need to do this another 30 or so times and they are home free:think: Unfortunately its only a monthly event?

cbobting

ad44downey wrote: »

I want nothing to do with HBOS, they're nothing but a pile of toxic rubbish

i really dont understand the mentality of shareholders that keep saying this. the merge is a good thing for lloyds and its shareholders.

baby_boomer

MSE thread - How could the idiots at HBOS agree to this £1.5m mortgage so casually?

Lloyds shareholders should worry that the government won't let Lloyds pay dividends, sack staff or repossess homes quickly in a recession.

They should get the hell out of this deal and leave the government to nationalise HBOS.

setmefree

Your Ref.....123456789

Our Ref...80LL0x-2-u

Dear Mr Bank-Bill-ding-so-si-ity

Thank you for you recent application ref..loan £37 Billion, on this occassion we regret that we decline your application.

We have come to this decision based on the information recieved through our credit reference agency.

Many different factors are taken into consideration whils't proccessing an application, and due to your previous financial history and the complete incompetence you have shown over the last 2 years, we had no alternative but to say GET STUFFED.

Should you wish to find out more information regarding your status, you may apply to every newspaper and television media... may i suggest that you contact Mr Tex Payor, he has previously dealt with your representitive in the past Mr R Sole.

I'm Sorry that the outcome has not been one of a positive view, but i'm sure that you must now be used to reading the same sort of template that you have sent to many customers

Yours Sincerely

U.R.A.T055ER

sabretoothtigger

I dont think the government can stop them merging the business fully after waving any objections to the deal previously.
They may exert pressure to slow down the process which is reasonable for such a massive company, 40k is alot of people to show the door.

It might be 5 years before lloyds can sit back, light up a cigar and laugh at the power base they have built but I think their whole strategy is long term growth , thats why they didnt over involve themselves with the quick buck sub prime deals right?

They are buying hbos for half its value, its a bigger company then them with more customers and made more money in both last years results and these last results. This reminds me of when aol took over time warner, I just cant remember if that turned out well :laugh:

Broadback

Like many others I bought Lloyds shares for the income. The government have effectively stopped any shares being paid for a number of years. I cannot see the share price recovering to any significant amount. In fact over a long period of time shares do not gain a lot, unless the dividends are re-invested, then the returns are good.

mrposhman

Broadback wrote: »

Like many others I bought Lloyds shares for the income. The government have effectively stopped any shares being paid for a number of years. I cannot see the share price recovering to any significant amount. In fact over a long period of time shares do not gain a lot, unless the dividends are re-invested, then the returns are good.

they do, if share prices are significantly undervalued.

baby_boomer

Times - Hopes of early dividend dashed by the EU if the Lloyds/HBOS deal goes ahead

"....The European Commission was adamant that Royal Bank of Scotland (RBS), Lloyds TSB and its takeover target HBOS must pay back all preference shares issued to the Treasury before paying out a penny in ordinary dividends...."

This must surely kill any last hopes of shareholder support for buying HBOS - which will now have to be run by the government.

Although a commentator to the Times disagrees:

the lloyds/hbos deal will probably go through because of the big institutional investors who have holdings in both companies, and know that hbos may not have a future without the deal

sabretoothtigger

The EU sucks once again

If its any comfort barclays is taking no government money and their shareholders still wont get a dividend for a year just because they cant afford it.