State to save HBOS and RBS

baby_boomer

It's this concept of not being responsible for the debt banks have created which is at the heart of the crisis. Sell it on. Insure it. Reinsure it. The responsibility gets passed so far away that no-one has a clue about the status of the original debt.

Back on topic:

It would have been an interesting decision about RBS for an independent Scotland .

I think HBOS was English even though the HQ was left in Edinburgh for sentimental reasons.

sabretoothtigger

What's your income like?
Diddly squat.

Hbos made 850m pounds profit, the point is their debts may rise in the future and they are supposed to raise more security just in case

mewbie_2

sabretoothtigger wrote: »

Hbos made 850m pounds profit, the point is their debts may rise in the future and they are supposed to raise more security just in case

Thanks. It was just a joke, built around a vague feeling rather than specific economic circumstances.

baby_boomer

ITN news snippet

HBOS refused to let Virgin have its £1bn in the period of uncertainty before the Lloyds offer.

"Virgin Atlantic may have disappeared if HBOS had gone, it could have been that serious," Sir Richard said.

kennyboy66_2

amcluesent wrote: »

Private shareholders will be left with nothing of value after this, Clown will be taking preference shares and first call on the divis in perpetuity and the ordinary shares will be priced to reflect zero income and no chance of capital gain for a generation.

Perhaps if the taxpayer is bailing the banks out then they should have at least first call on any upside.
If either HBOS or RBS issue more shares then private shareholders should be allowed to subscribe. They won't of course because it risks throwing good money after bad.

Private shareholders should stop bleating on about the failings of the management that they appointed.

Northern Rock - management failings
B & B - as above
RBS - bet the bank on buying ABN Amro and lost.

But of course this is all the fault of politicians.

IT_nerd

Who was the person boasting on the savings board about how he's just invested "vast" (His words, not mine) amounts of money in both HBOS and RBS. Even said the words "I guarentee the price wont fall and will bounce back next week" and "Good short term investment".
It was on thursday. Can't remember his username and he deleted the thread on friday.
Anyone remember his ID?

Kez100

GBrown2008?

Heyman_2

Kez100 wrote: »

GBrown2008?

:rotfl:

Speaking of which, I see he's patting himself on the back again, this time about the fact that Europe is going to use our plans as a blueprint for their own bail-outs.

Hopefully he'll boot himself in the backside when the General Election comes round :mad:

BiggaThanBen

Sky news: Lloyds-HBOS deal has collapsed

wonder what is going to happen to halifax now

Generali

kennyboy66 wrote: »

Perhaps if the taxpayer is bailing the banks out then they should have at least first call on any upside.
If either HBOS or RBS issue more shares then private shareholders should be allowed to subscribe. They won't of course because it risks throwing good money after bad.

That's pretty much exactly as it's planned to work AIUI. The banks will issue preference shares paying 10%(?). They are called preference shares because they get first dibs on any dividend that is paid out. That is to say that until the holders of the preference shares get their 10% it is illegal for any other (ordinary) shareholders to receive any dividend at all.

The preference shares will be offered to existing shareholders and the Government. It is expected that the Govt will take most or all of the shares.

kennyboy66 wrote: »

Private shareholders should stop bleating on about the failings of the management that they appointed.

Northern Rock - management failings
B & B - as above
RBS - bet the bank on buying ABN Amro and lost.

I expect that any banks that raise money from the Government will find that they have a mostly or entirely new board pretty quickly. The shareholders won't so much bleat as sack.

kennyboy66 wrote: »

But of course this is all the fault of politicians.

Well politicians claimed to be regulating the banking system. It doesn't look like they did a very good job.