Is it ok to let HBOS go under

The_White_Horse

don't worry about anything. this is lefty liberal England. The 13 year old dad will be given all he needs. a free house, free council tax, free money, free food free everything.

People like him need not worry at all about things like economies, jobs, unemployment. because its all paid for.

as the man himself said "what's financially"

and then "oh, you mean money - dunno"

a wonderful country.

Count_Dante

vivatifosi wrote: »

I still can't get my head found the fact that there wasn't time to do proper due diligence on a merger of this size and yet it was still seen as ok to go ahead. Its shameful.

I understand Daniels said that they would normally do three to five times the normal due diligence the would do with a merger of this size, but didn't because of the time scales involved.

vivatifosi

Count_Dante wrote: »

I understand Daniels said that they would normally do three to five times the normal due diligence the would do with a merger of this size, but didn't because of the time scales involved.

In which case, as julieq says, they should have planned for the worst. Instead we had a situation where key board members didn't seem to have known things were as bad as they were even a couple of days before the news was released. Unless of course they were lying, which I suppose is also a possibility.

Hector-The-Inspector_2

Count_Dante wrote: »

I understand Daniels said that they would normally do three to five times the normal due diligence the would do with a merger of this size, but didn't because of the time scales involved.

Yeah, I suppose if your in a rush you wouldn't notice a loss of ......................10 BILLION ! :rolleyes:

Snooze

Count_Dante wrote: »

I understand Daniels said that they would normally do three to five times the normal due diligence the would do with a merger of this size, but didn't because of the time scales involved.

I would say the reasons are more likely to be because Clown was waving a nice fat financial incentive under his nose.....

Rob

Walletwatch

The_White_Horse wrote: »

don't worry about anything. this is lefty liberal England. The 13 year old dad will be given all he needs. a free house, free council tax, free money, free food free everything.

People like him need not worry at all about things like economies, jobs, unemployment. because its all paid for.

as the man himself said "what's financially"

and then "oh, you mean money - dunno"

a wonderful country.

See, that is something I really did not understand - you could expect the rags, the tabloids to sensationalise him, but Sky TV and BBC !!! They are the culprits here, having devoted so much airtime and coverage to him... hes' now going to be the role model for his classmates at school, and where is that going to leave things - hope it doesn't translate into thirteen year old daddies burgeoning here and there...

back on topic, the problem with letting HBOS or now Lloyds go under would be the immense political risk that it would pose to any ruling party, not only
Labour. I personally am a staunch capitalist and was happy when the US let Lehman go down, but soon realised that it actually was a selective policy on whom to let go of and whom to 'bail out'!!! It's so surprising that just a year back, not too many would even understand what this term (bailout) meant, and now it has become a household utterance at least in the US, UK and Europe.

Rochdale_Pioneers

Yes lets express our anger at the banks by letting HBOS fold. Lets all enjoy the reaction as all our other banks collapse by a mass sell-off of their shares and a mass calling in of their debts by creditors. Then lets see the UK's credit worthiness fall.

Letting Lehman collapse is widely regarded as the cataclysm that pushed the American system over the edge. Why do some of you want the same to happen here?

RHYSDAD

Cleaver wrote: »

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

Thanks for the thinly veiled sarcasm.
I knew i'd have to pay my mortgage. Obviously

Broken_hearted

Rochdale_Pioneers wrote: »

Yes lets express our anger at the banks by letting HBOS fold. Lets all enjoy the reaction as all our other banks collapse by a mass sell-off of their shares and a mass calling in of their debts by creditors. Then lets see the UK's credit worthiness fall.

Letting Lehman collapse is widely regarded as the cataclysm that pushed the American system over the edge. Why do some of you want the same to happen here?

One bank going under will not collapse the whole system banks go under from time to time as normal circumstances.

Dylanwing

The losses give a rather large clue that it is not the ordinary Joe who over-stretched themselves, or is struggling in the recession that is the problem. The Bank had a faulty business model that was unsustainable - Blame is being deflected onto the Public, and on to the shareholders, but essentially it boils down to poor Management and failure of regulation. What is galling a lot of people is that the Bankers responsible don't seem to think that anything is wrong, and are trying to carry on as before, but backed by taxpayers money, and Gordon is so keen to avoid any blame landing anywhere near him that he will just give money away unconditionally. The Banking system stinks, and now is a good opportunity for reform - Maybe it needs HBOS to go bust, and then the Government step in with support, and reform to Bank to run around sound principles, and with a proper reward system in place.
Gordon has to do something, the longer he dithers, the worse the situation is getting, and even the docile British Public can get very angry in times of hardship.