I have shares in the banks

Robinmsa

To be honest with you, I think that the Lloyds/HBOS deal will go through, because of institutional investors owning shares in both companies. I'm a Lloyds Shareholder and it looks a bad deal from my point of view.

The HBOS shareholders will vote it through as something is better than nothing...

But I'm not so sure about the Lloyds shareholders, because why should we bail out a failing bank.

Why doesn't Eric Daniels (Lloyds CEO) scrap the idea, wait for HBOS to be Nationalised, then buy the best bits. Eg Barclays/Lehman Brothers, Bradford & Bingley/Santander??/

ad44downey

As a Lloyds TSB shareholder, I'm definitely voting against. HBOS is a total pile of shiite.

sabretoothtigger

If the apocalypse happens, it wont go through otherwise lloyds wants to make a ton more money over the next ten years and harvesting hbos customers like a cash cow is how they intend to do it, I dont see anyone else with a better plan so I cant see it being voted down.
If anything the cost savings will allow them to make profits earlier then all the other banks hopefully, it does depend how bad the loan book turns out too I guess.










Now

http://timesbusiness.typepad.com/money_weblog/2008/10/post.html



6 months ago

Neil_G_2

Hi – I work on behalf of Lloyds TSB. We have added some new pages to the Lloyds TSB website about the proposed acquisition – and you should find these give you more information and address your questions. You can find this info at www.lloydstsb.com/hbosacquisition. More information will be added as time goes on, so do keep checking the site. I hope that helps, Neil.

sabretoothtigger

I have an official question, how many fscs licenses will the combined bank operate under?

What happens next?

We hope to complete the acquisition by early next year. Before this can happen, we need to secure shareholder, regulatory and other approvals with the aim of getting all matters agreed and approved by early next year. We hope to hold our shareholder meeting towards the end of November and information on this will be sent out in due course. HBOS will be contacting their shareholders separately about their shareholder meeting.

I like this bit, do hbos do this presently?

Instant cheque interest, so that you get interest on your cheques of up to £1,000 from the day you pay them in rather than the day they clear.

Britain’s Safest Bank
Lloyds TSB has been ranked 6th in the 2008 ‘World’s Safest Banks’ listing by Global Finance, making it Britain’s safest bank.
Lloyds TSB currently has an ‘Aaa’ Investment Grade Rating from Moody’s. Moody’s are independent financial analysts who examine the financial security of institutions based on their credit ratings and assets, and this is their highest possible rating, demonstrating our financial strength.
Lloyds TSB is in this strong position because we have always had a conservative, long-term approach to how we do business. This means we have been relatively sheltered from the worst of the recent market turmoil as we are very well funded and have limited exposure.

Neil_G_2

Sabretoothtigger - Thanks for taking the time to look through our website. As the website aims to cover as many areas as it can, it is sometimes not possible to answer specific questions. However we are constantly looking to update the website with the latest news in order to advise our customers. Please do check back regularly on the link I posted as we will be adding more information over the coming weeks.

sabretoothtigger

Barclays raised 3 billion euros from the sale of three-year bonds and is the only bank to so far take advantage of the government guarantee, for which banks pay a fee to the Treasury.
Strong interest in the Barclays offer -- which attracted demand for over 4 billion euros (3.23 billion pounds) of bonds and was placed with 167 investors -- lifted optimism the bonds could help unfreeze funding markets blocked up during the credit crisis.

Can anyone tell me if this counts towards the 6 billion Barclays must raise by 31st Dec or more likely are they merely reducing/reselling some liabilities



Anyway it sounds good compared to RBS who seem to be going in the opposite direction

RBS wrote down 5.9 billion pounds in the first half and is expected to reveal more for the second half when it releases a prospectus for a capital increase. Shareholders will be offered 15 billion pounds of new shares, with the government buying any shares that investors do not want.
The prospectus, due by the end of this month, is expected to be released on Friday.
Sandy Chen, analyst at Panmure, forecasts RBS will lose 6.8 billion pounds on writedowns and impairments in the second half, although that figure includes losses on traditional bank lending as well as structured credit.

http://uk.biz.yahoo.com/27102008/325/rbs-faces-writedowns.html

sabretoothtigger

A new taxpayer-owned mega-bank

• 3 Nov 08, 05:55 PM

they are putting the shares that will be acquired for taxpayers in Royal Bank of Scotland, HBOS and Lloyds TSB into a new company that will be owned by the Treasury, but will be managed at arms length. That company will be chaired by a former finance director of Lloyds TSB, Sir Philip Hampton, who is currently chairman of the supermarket group Sainsbury.


UK Financial Investments Limited will end up as one of the biggest bank holding companies in the entire world

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

It is expected that RBS will not publish a full-year profit estimate because of the continuing volatility in the global banking sector, when it updates on its third quarter and publishes the pros-pectus for its £20bn capital raising. RBS declined to comment.

Changes recently agreed by the Acc-ounting Standards Board may allow both banks to limit markdowns on their holdings of mortgage-backed securities and other forms of tradeable debt. Last week, Deutsche Bank used these changes to shift a substantial proportion of these assets on to a hold-to-maturity basis, substantially reducing the size of the writedowns it was forced to take against profits

http://www.independent.co.uk/news/business/news/hbos-and-rbs-to-reveal-massive-asset-writedowns-987111.html

We recognise the importance of dividends to shareholders and we are committed to removing the dividend blocker during 2009 by early repayment of the £4bn of preference shares in the enlarged Group. That will then enable us to resume the option of cash dividend payments.
However, the restriction on payment of dividends does not preclude the issue of shares through a Capitalisation issue. Lloyds TSB intends to issue shares by way of a Capitalisation issue in 2009 in respect of the 2008 financial year at a level to be determined by the board at the appropriate time.

http://www.lloydstsb.com/merger/shareholder_questions_answered.asp

http://www.finance-glossary.com/terms/scrip-issue.htm?id=1284&PopupMode=false

elizw

Can anyone let me know what they think about the new bid for two ex bankers to take over HBOS. Shareholders would be better of under this. Would shareholders vote to accept this if asked?

sabretoothtigger

Lloyds would be better off short term but hbos share price is only going to shoot up if they have buyers lined up for alot of the assets. I cant think of any other alternate to lloyds funding their debt requirements.

Sure maybe they could struggle on and it'd be in the same capacity as rbs, mostly government owned for years but really I think the merger will reap more return in the long term and they would only increase risks without reward before then.

They screwed up and seriously need to reduce their debt, costs, increase their capital base- merging is an ideal way to do that.

The terms are poor for hbos though, 2 years ago it would have been 1.2 lloyds shares for each hbos

Its a nationalist thing. Seems wrong to object to this takeover, its like darwin in motion with lloyds the crocodile biding its time and snapping up a bargain