LLoyd's branch sale collapses

michaels

If the UK retail banks that were worth trillions before the financial crisis are now basically worthless that is an awful lot of wealth (/capital) that has been lost to the UK

purch

michaels wrote: »

If the UK retail banks that were worth trillions before the financial crisis are now basically worthless that is an awful lot of wealth (/capital) that has been lost to the UK

Or to put it another way, lots of zeros have disappeared from computer screens

System

I spoke to a local LloydsTSB man a few days ago. He admitted it had been very poorly publicised, and was surprised that I even knew about it. (That's because they sent out an explanatory leaflet to all customers!)

Fortunately all my accounts are going to stay with Lloyds - it's just the branch which will become TSB. I'm not too bothered - I use internet banking mostly, and there will be other local branches staying as Lloyds.

Thrugelmir

michaels wrote: »

If the UK retail banks that were worth trillions before the financial crisis are now basically worthless that is an awful lot of wealth (/capital) that has been lost to the UK

Northern Rock at Peak was worth £5 billion.

RBS £70 billion

HBOS £40 billion

Lloyds £34 billion

When you consider the funding pumped into the banking system by the Government. There's been a huge sum in lost investments.

noodle_doodle

Clifford_Pope wrote: »

I spoke to a local LloydsTSB man a few days ago. He admitted it had been very poorly publicised, and was surprised that I even knew about it. (That's because they sent out an explanatory leaflet to all customers!)

I got the leaflet (your account will be moving!). But as i have three accounts of my own and am in charge (i dunno the proper big word) of my sons savings account till he can add up, and it didn't mention which accounts or where (nothing on the letter), I had to do the finding out myself. boo to lloyds. (and boo to them buying hbos in the first place, that cost me hundreds)

princeofpounds

If the UK retail banks that were worth trillions before the financial crisis are now basically worthless that is an awful lot of wealth (/capital) that has been lost to the UK

It's more that the wealth never existed. The 'wealth' in a bank is the difference between the liabilities (deposits from customers etc) and the assets.

The assets are normally loans, which is a stream of future payments from borrowers. Obviously because we don't know the future, we can only estimate the value of these streams at the present time. Turns out those calculations were wrong.

wotsthat

Thrugelmir wrote: »

Northern Rock at Peak was worth £5 billion.

RBS £70 billion

HBOS £40 billion

Lloyds £34 billion

When you consider the funding pumped into the banking system by the Government. There's been a huge sum in lost investments.

Every time Lloyds are mentioned on the news they are taxpayer owned. They've set aside £6.7bn (20% of their peak value) for PPI - no-one mentions it's 'our' money that's being given away.

However, £365m in Lloyds 2012 bonuses seems to get the media and Vince Cable's knickers in a twist because that's 'our' money being given away.

....and the government remain confused about why new entrants to the UK banking sector aren't forming an orderly queue.

michaels

princeofpounds wrote: »

It's more that the wealth never existed. The 'wealth' in a bank is the difference between the liabilities (deposits from customers etc) and the assets.

The assets are normally loans, which is a stream of future payments from borrowers. Obviously because we don't know the future, we can only estimate the value of these streams at the present time. Turns out those calculations were wrong.

I don't think that is the whole story - I think there was a lot of 'value' from profits that were expected to acrue from activities like overdraft charges, cross-selling of insurance etc which it now turns out will never happen hence branches and exisitng customer becoming liabilities rather than 'profit centres'.

Sadly all this lost value whilst just bing zeros on a screen were also directly expected to pay for our standard of living through future pensions or govt tax receipts so they will be missed.

michaels

Thrugelmir wrote: »

Northern Rock at Peak was worth £5 billion.

RBS £70 billion

HBOS £40 billion

Lloyds £34 billion

When you consider the funding pumped into the banking system by the Government. There's been a huge sum in lost investments.

Thank goodness, it is only 100's of billions that the UK has lost rather than trillions

IronWolf

MacMickster wrote: »

It is suggested that the LLoyds branches involved will now be rebranded as TSB and then shares sold in the new company.

Is this likely to attract a rush of new investors?

If an IPO fails they can just do it as a spin-off, but more advantageous for Lloyds management to IPO and get extra cash for it.