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Lloyds TSB to take over HBOS?

grober

grober

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The Govt will effectively suspend any monopoly and mergers concerns to stop any further failures.

There will be some behind the scenes handshakes going on in a bid way...someone somewhere always comes out of these things smelling of roses.

Watch out for the golden parachutes....
 
88p for HBOS shares. I may be wrong but I was under the impression that Lloyds TSB had fared relatively well thru the credit crunch and had relatively little exposure to the subprime market-why then enter into a merger/deal with a bank that has.
 
*** said:
88p for HBOS shares. I may be wrong but I was under the impression that Lloyds TSB had fared relatively well thru the credit crunch and had relatively little exposure to the subprime market-why then enter into a merger/deal with a bank that has.
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So they can buy the assets of the bank and the infrastructure at far less than market value, effectively pricing in the loss made by the exposure.

They then consolidate branches over the next few years making a bigger bank with proportionately less overheads.
 
Mudster said:
So they can buy the assets of the bank and the infrastructure at far less than market value, effectively pricing in the loss made by the exposure.

They then consolidate branches over the next few years making a bigger bank with proportionately less overheads.
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True, but they'll have the liabilities too...

In the long term you may well be right, but it will take time.
 
The current "Talks" taking place will be..."So how much have you had your pants pulled down by?" ....at which point they then come up with a bid price.....

The fact is, as long as it's half reasonable they'll have to take the offer.
 
Mudster said:
The current "Talks" taking place will be..."So how much have you had your pants pulled down by?" ....at which point they then come up with a bid price.....

The fact is, as long as it's half reasonable they'll have to take the offer.
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Very true - will that ultimately become a bank too big to fail?
 
Oh yes, just as the Titanic was to big to sink
 
*** said:
Very true - will that ultimately become a bank too big to fail?
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Quite frankly, Lehman Bros was too big to fail.....or so we thought....

No one institution is too big to fail, but a lot of them going like a pack of cards would be so catastrophic that its highly unlikely to happen.
It's in everyones interest to stop complete failures, but it's dangerous to assume these places are too big to fall
 
I meant to comment in scarcasm and in part if the LLoyds HBOS merger took place and it failed, would the government bail it out due to the cataclismic effect of its failure.
 
Will HBOS actually go down if the merger doesn't.?
They insist not and there is comment that it's the bears driving the market, although the price has rallied immensely, shooting them in the foot somewhat.
 
Dieselman said:
Will HBOS actually go down if the merger doesn't.?
They insist not and there is comment that it's the bears driving the market, although the price has rallied immensely, shooting them in the foot somewhat.
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That's how people who short sell want it to work...
 
nick mercedes said:
That's how people who short sell want it to work...
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Appreciated, but it didn't go down far enough really and came back too quickly before there were many shares available.

I suppose the quick could've made a decent return.
 
All being done in a bit of a rush in order to prop up confidence. But can it be done that quick? Surely it will require shareholder approval and if the price is not reasonable many may wish to ride out the storm. The HBOS shares have gone from 1100p down to 88p, then back up and down like a yoyo in the 300p sector....so what is fair price to the shareholder,not just the very well paid directors?:crazy:
 
carnut said:
All being done in a bit of a rush in order to prop up confidence. But can it be done that quick? Surely it will require shareholder approval and if the price is not reasonable many may wish to ride out the storm. The HBOS shares have gone from 1100p down to 88p, then back up and down like a yoyo in the 300p sector....so what is fair price to the shareholder,not just the very well paid directors?:crazy:
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A great deal more than 88p. Nearer 300p
 
What is a fair price if the alternative is complete failure due to underfunding?

At that point anything looks quite good.

(Not saying it will fail, just something that needs to be considered).
 
I hope it does'nt come off, mainly because I hate Lloyds with a passion. I switched my bank accounts and my mortgage from Lloyds to Halifax a couple of years ago cos they ****** me off so much, so now it looks like I'm gonna have to shift again :devil:

Lloyds will never have any business from me as long as I draw breath, if they buy every bank in the galaxy I'll do without, ooooh now look, I'm off on one.......
 
I bank with Lloyds and concur with the above, shambles doesn't even begin to describe what I've been through over the last 6 months. In the lst 12 months I've had 7 (yes seven) "Personal account managers" the previous 6 being fired due to incompetence.

Sadly they're all the same.

I'm hoping something good will come out of all this credit crunch nonsense, my biggest bugbear is the time it takes them to organise anything.

I moved my account from one branch to another to make it easier to administer....they lost everything...all our DD's Standing orders our balance, our incoming payments bounced cheques it was simply abysmal....but what point in changing, same crap service different name......
 
anyone with inside info?. halifax was my building society. never liked it when it went into a bank. societies are more cautions.now wondering what is going on with HBOS
 
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