Is it ok to let HBOS go under

kennyboy66_2

Hindsight is a great thing but HBOS would have been better left to go into administration with government guarantee. It could have been the "bad bank" into which all the toxic !!!!! was dumped.

Interesting that almost all the £10bn losses came from commercial lending rather than mortgage lending.

funkyfreddy9k

zedyy wrote: »

Why not? if a business fails it doesnt get a bail out, why should a bank?

wrong.

Depends on the business and the impact it would cause - remember the car industry is likely to get some kind of bail out for example.

If hbos had been allowed to collapse, or lloyds is allowed to collapse, then so would the majority of big businesses in britain directly due to so many of them having credit facilities with lloyds/hbos. You're talking millions of people being made redundant within a few days. Not really a clever move. Indirectly, the country and everyone in it would basicly be bankrupt.

leveller2911

Lets face it, we would all be a lot happier if we had the bankers strung up under Tower Bridge, its the fact that they have got away scot free has annoyed people so much, oh and not forgetting all those thousands of f e c k less borrowers seem to have had it rather easy too.

If I had my way the bridge would be full.........:rolleyes:

Count_Dante

As I understand it, shareholders (in the main part pension funds - companies paid by us to manage our pension funds for the long term) demanded bigger and bigger dividends from the banks. These dividends could only be maintained by cutting back on 'non essential' staff, like those who work in risk. Had the management of the big banks told shareholders that the profits the banks were making were unsustainable, they would have been sacked - and in doing so, management would be making themselves a lot poorer. So where was their motivation to tell it like it is?

LydiaJ

Remember the NR thing and the queues of worried savers trying to rescue their money. If a bank goes bust, the bankers may lose their jobs, but it's the account holders (who aren't at all responsible for the mess) who lose out the most. It's not as though the bankers would be asked to pay back their last 10 years' worth of bonuses to make sure the savers weren't out of pocket, is it? I think that's why it's so much more of a big deal to let a bank go bust than to let some other kind of business go bust.

Cleaver

Oblivion wrote: »

Going where exactly? We are already approaching third world status due to Clown's mismanagement and his handouts to the corrupt banking system. "Our economy" ... don't make me laugh.

I find these comments funny. Although it makes a nice soundbite, we're not even in the same stratosphere as third-world countries where in many people are dying of starvation, being shot by their own government soldiers and have up to a quarter of the population suffering from diseases such as malaria and HIV / AIDS.

But as I said, makes a great soundbite, so please do continue.

Cleaver

RHYSDAD wrote: »

Will i still have to pay my mortgage if 'Halifax' goes?

No, you'll get a free house. Obviously.

ad9898_3

RHYSDAD wrote: »

Will i still have to pay my mortgage if 'Halifax' goes?

As DD has said HBOS has gone, if the government have to step in for Lloyds then just has customers of NR have to pay their mortgages, so will you.

But I'm pretty sure you were takin the p*ss and already knew that.

Degenerate

julieq wrote: »

Disaster innit. I mean Lloyds would never apply over-stringent asset valuation critera to HBOS so that if all of the writedown didn't actually turn out to be worst case they'd have a stonking start to next year?

Ding ding - we have a winner.

Exactly the same thing as RBS and heavily encouraged by the Government behind the scenes. There is a determination to get all the bad news written down so that we will not repeat the Japanese example of zombie banks. This is a good thing - call it a reboot, or perhaps an enema.

Masomnia

Oblivion wrote: »

Going where exactly? We are already approaching third world status due to Clown's mismanagement and his handouts to the corrupt banking system. "Our economy" ... don't make me laugh.

Dave.

If you're going to make ignorant comments about the third world, then I'm not going to bother.