HSBC and RBS considering Merger

RayWolfe

Dylanwing wrote: »

Marshmallow79 - For the reasons already stated, your post was naive, and Ray stated so. If you think that calling him stupid is acceptable, check the 'Forum Etiquette'. BTW, I don't know Ray, but having seen many of his postings, be assured that he is not stupid.

Ooooh, I'm all embarrassed now ....
I do, occasionally, make a prat of myself here but I would hope that, when I do, I'm man enough to admit it!


Or
If you want the £5 argument:

Yes I am stupid!

natweststaffmember

I am not too sure the LloydsTSB HBoS deal is a done one yet. These strange times we are in may still see more to come no doubt.

M_Thomson

natweststaffmember wrote: »

I am not too sure the LloydsTSB HBoS deal is a done one yet. These strange times we are in may still see more to come no doubt.

It has to be agreed by HBOS and Lloyds Shareholders.

mzqa395

Anyone smell there are capital problems from Natwest/RBS? Is that the reason they put their interest rate up on their saver account (Esaver ISA)?

Kavanne

mzqa395 wrote: »

Anyone smell there are capital problems from Natwest/RBS? Is that the reason they put their interest rate up on their saver account (Esaver ISA)?

Must be REAL capital problems at HSBC if they're offering 8 and 10% now then!!!

Your argument doesn't make sense, sorry!

natweststaffmember

mzqa395 wrote: »

Anyone smell there are capital problems from Natwest/RBS? Is that the reason they put their interest rate up on their saver account (Esaver ISA)?

We also have an additonal 2% for 12 months on ISA transfers, we also have 2 year fixed rate bond from tomorrow at 6.6% gross, we also have a savings account bonus interest linked to the Credit card(up to 3% with spend on the credit card of £500 average over the next three months). E savinds account as well with additional 2% on that account over the next 12 months. We seem to have some good rates going.....as I have said before, we live in strange times and interesting times.

sabretoothtigger

Peston wrote:

Chairman Bernanke said that the Treasury would attempt to buy these debts from banks at close to their "hold-to-maturity" value, not the market value.

In practice, it means banks who sell their debts to the Treasury would receive cash equivalent to something like twice the value in their books of these poisonous assets.
In other words banks would book a profit from selling to taxpayers!

It would represent a massive injection of new capital into the US banking system - for which taxpayers would receive nothing in return, except for the assurances from Mr Paulson and Chairman Bernanke that their banking system would not collapse.
US lawmakers may agree to this jaw-dropping proposal. But it won't be an easy sell.
UPDATE, 17:20PM: To elucidate, the "hold-to-maturity" is an estimate of what a loan will repay over the full life of the loan, as opposed to the trading price in the market.
The current trading or market prices for mortgage-backed securities and their more toxic cousins in the CDO world are partly low because the markets aren't functioning: there are no buyers.
So arguably the market prices are too low.
Even so, this seizing up of markets is widely seen as the banks' fault, for the way they lent during the bubble years as if there was no tomorrow.
And to reiterate the big point: Paulson and Bernanke are asking Congress to legislate to allow them to use taxpayers' money to generate massive profits for the likes of Citigroup, Morgan Stanley and Merrill, by buying their poisonous assets at far above what the market says these assets are worth.
I find it difficult to believe that Congress will give its assent, unless there is a massive tit for tat - which could be stakes for taxpayers in the banks, or the wholesale sackings of bank executives, or some other form of spanking.
Actually, just a plain sorry from the banks would probably help.

No wonder they wont pass this deal, its not balanced properly.
Any payment to banks should be done gradually and conditionally on their good behaviour and adherence to sound lending practice

I am slightly suprised that the government didn't encourage HSBC to buy HBOS - if only as (I think) job losses would have been a lot less as last time I looked HSBC only has about 10 branches in Scotland

HSBC Ive read were not willing to give any payment for hbos shares. They could still bid against the deal if they wished to afaik
telegraph had a story on it, lloyds would get 130m if outbid (from memory)


That linked story is pretty old now, I dont have great hopes of a deal not for a reasonable amount anyway. Nice to know there is a possibility though. I was wondering why Rbs was rising vs a poor ftse but then barclays was also strong at one point so I assumed it was to do with the american deal.