Is it ok to let HBOS go under

stevsand

kennyboy66 wrote: »

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.

Scotlands favourite bussiness man springs to mind:T

Honest_Banker

When will everyone realise (especially Broken Hearted) that the government will NOT allow any banks to go under as this would create massive 'panic' and de-stabalise the economy further.

The government will not allow ANY bank to go under, this is fact, they would nationalise them before they went under.

There are alot of very good staff within the banking industry, and we as much as anyone else do not want to see people lose their money.

Antispam

Yes the banks are a special case, they were the ones who caused this mess and they will never loose out because we the tax payer will have to bail them out and pay there nice bonuses. They should be scrapped straight away

I am sure there are many good staff in banking as indeed many other sectors. But I dont believe employees/CEO's deserve bonuses, that is one reason why we are in the mess we are now as it encourages some to take high risks

mrposhman

Antispam wrote: »

Yes the banks are a special case, they were the ones who caused this mess and they will never loose out because we the tax payer will have to bail them out and pay there nice bonuses. They should be scrapped straight away

I am sure there are many good staff in banking as indeed many other sectors. But I dont believe employees/CEO's deserve bonuses, that is one reason why we are in the mess we are now as it encourages some to take high risks

Some bonuses create those high risks.

LBG got it in the neck for trying to pay lower paid staff £120m in bonuses. LBG stated that this was generally lower than £2k bonuses. I don't carry out any excess risks but contribute to my businesses (and local departments) profits and can achieve a 9% bonus, which is higher than the £2k that LBG wanted to pay their staff.

It's my understanding that these staff may have contirbuted well to their local profits but the bank made losses due to the investment banking areas. Theres no indication that those getting bonuses were mortgage advisors either so these may be your average joe taking the cash through the window at your local branch, not those taking excessive risks.

I still think that the government have got a decent long term investment which should appreciate in value for them. Don't forget that LBG will be paying them interest this year on their preference shares too. I think it was 7% at an investment of £4bn adding £280m to government coffers if they aren't converted.

pickles110564

Honest_Banker wrote: »

The government will not allow ANY bank to go under, this is fact, they would nationalise them before they went under.

I have always wondered if a Major mortgage bank went under, surely that would cause a huge property crash. How would the people with NE get mortgages with a new mortgage company as they would not have any equity and would probably not be able to raise a new deposit.

fatpig_2

pickles110564 wrote: »

I have always wondered if a Major mortgage bank went under, surely that would cause a huge property crash. t.

sounds good to me.

Dan:_4

fatpig wrote: »

sounds good to me.

Then your out of luck, because it's not gonna happen.

pickles110564

fatpig wrote: »

sounds good to me.

Baconboy please carry on and give a full answer instead of your normal soundbites.

Dan:_4

HBOS does not really exist anymore. Halifax and Bank of Scotland are trading names within the Lloyds Banking Group. (there is some legal stuff to make this happen officially but it is already shown this way on the LBG website)

I think LBG want to get shot of the 'HBOS' name as soon as possible.

StevieJ

Dan: wrote: »

HBOS does not really exist anymore. Halifax and Bank of Scotland are trading names within the Lloyds Banking Group. (there is some legal stuff to make this happen officially but it is already shown this way on the LBG website)

I think LBG want to get shot of the 'HBOS' name as soon as possible.

So glad I sold my Halifax freebies on the first day at £7.60, many moons ago.