HBOS falling hard.. this could get nasty - Page 3

Haly · 17-09-2008, 13:21

If there is a merger, I suspect it'll affect the call centres round here

Iirc there's 1 HBOS call centre in Swansea, 1 Lloyds TSB and another nearby as well.
Just what the area needs if so, as there's already been all the job losses from XL going bust

Mark · 17-09-2008, 14:48

Looks like the Government are preparing to bulldoze through the deal (bypassing the usual regulatory checks and balances) in the name of expediency and financial stability. Given the current turmoil that is entirely understandable and probably the correct approach - we really don't need another NR.

However, I do wonder if there are downsides to this and how much we might pay for this deal in the future.

bam · 17-09-2008, 15:13

Quote:

Originally Posted by Mark

However, I do wonder if there are downsides to this and how much we might pay for this deal in the future.

In the short term, jobs. In the long term, reduction of competition, that's not going to be a good thing for consumers.

Admiral Huddy · 17-09-2008, 15:16

Government backing would also improve agency ratings which is something overseas bank have phased out. Including the bank I works for, which was owned by the state.

Mark · 17-09-2008, 15:20

Quote:

Originally Posted by bam

In the short term, jobs. In the long term, reduction of competition, that's not going to be a good thing for consumers.

But would we be any better off in the long term with the status quo? Why are HBOS (and the Government) so keen on this deal, especially given their recent £4bn rights issue? Is it purely a consequence of downgrades fuelled by speculation, or is there something else?

Mark · 17-09-2008, 15:41

Just read this, rather revealing...

Quote:

Originally Posted by BBC

Why this sudden merger, I thought both banks were sound?

It looks like a rescue.

Industry experts have calculated that HBOS had to buy back £150bn of short term bonds - glorified IOUs - by June next year.

They would then need to re-sell them to raise fresh cash.

Where would HBOS get the cash? Who might buy its bits of paper again? All this uncertainty seems to have contributed to the HBOS share price collapsing.

And if a crisis of confidence grips the financial markets, it is all but impossible to shake off.

As the administrators to the now defunct US investment bank Lehman Brothers pointed out, if you are a bank and no-one will trade with you, you are dead.

I wonder how much Lloyds own business will pile on top of that £150bn. That's going to be mighty scary if this crisis drags on for another 6-9 months.

Wryel · 17-09-2008, 16:06

Pretty much all of our systems are down at the moment (email, trading platforms) and apparently my colleague heard people desperately trying to rinse their hands of anything AIG earlier. I'm hiding in our 'lab' in the basement!

Mark · 17-09-2008, 16:18

Only thing I know about having to do with AIG is our works' travel insurance. I don't have any insurance from the high street so I'm safe there too.

Wryel · 17-09-2008, 18:25

Quote:

Originally Posted by Mark

Only thing I know about having to do with AIG is our works' travel insurance. I don't have any insurance from the high street so I'm safe there too.

I work for Rothschild

cheets · 17-09-2008, 18:30

Greed is Good

17-09-2008, 13:21	#21
Haly Do you want to hide in my box? Join Date: Jun 2006 Posts: 14,941	If there is a merger, I suspect it'll affect the call centres round here Iirc there's 1 HBOS call centre in Swansea, 1 Lloyds TSB and another nearby as well. Just what the area needs if so, as there's already been all the job losses from XL going bust __________________ Halycopter

17-09-2008, 15:16	#24
Admiral Huddy HOMO-Sapien Join Date: Jun 2006 Location: Chelmsford Posts: 6,692	Government backing would also improve agency ratings which is something overseas bank have phased out. Including the bank I works for, which was owned by the state. __________________ I just got lost in thought.. It was very unfamiliar territory. Techie Talk \| My gaming Blog \| PC spec \| The Admirals log

17-09-2008, 14:48	#22
Mark Screaming Orgasm Join Date: Jul 2006 Location: Newbury Posts: 15,194	Looks like the Government are preparing to bulldoze through the deal (bypassing the usual regulatory checks and balances) in the name of expediency and financial stability. Given the current turmoil that is entirely understandable and probably the correct approach - we really don't need another NR. However, I do wonder if there are downsides to this and how much we might pay for this deal in the future.

17-09-2008, 16:06	#27
Wryel Absinthe Join Date: Dec 2006 Posts: 1,148	Pretty much all of our systems are down at the moment (email, trading platforms) and apparently my colleague heard people desperately trying to rinse their hands of anything AIG earlier. I'm hiding in our 'lab' in the basement!

17-09-2008, 16:18	#28
Mark Screaming Orgasm Join Date: Jul 2006 Location: Newbury Posts: 15,194	Only thing I know about having to do with AIG is our works' travel insurance. I don't have any insurance from the high street so I'm safe there too.

17-09-2008, 18:30	#30
cheets Long Island Iced Tea Join Date: Sep 2008 Posts: 442	Greed is Good