Lloyds TSB to take over HBOS?

Discussion in 'Mercedes News' started by grober, Sep 17, 2008.

  1. grober

    grober MB Club Veteran

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    Yes the latest story from the overheated BANKING SECTOR. Lloyds TSB to take over HBOS? http://news.bbc.co.uk/1/hi/business/7620483.stm
    The way things are going probably best to have your savings in Krugerrands under the bed.:rolleyes:
    Lloyds TSB were themselves the subject of takeover interest by Wells Fargo in 2005.http://en.wikipedia.org/wiki/Wells_Fargo
    Where's Dale Robertson when you need him?
     
    Last edited: Sep 27, 2008
  2. Mudster

    Mudster Hardcore MB Enthusiast

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  3. Mudster

    Mudster Hardcore MB Enthusiast

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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....
     
  4. st4

    st4 Banned

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    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.
     
  5. Mudster

    Mudster Hardcore MB Enthusiast

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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.
     
  6. st4

    st4 Banned

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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.
     
  7. Mudster

    Mudster Hardcore MB Enthusiast

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    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.
     
  8. st4

    st4 Banned

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    Very true - will that ultimately become a bank too big to fail?
     
  9. Rob77

    Rob77 Hardcore MB Enthusiast

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    Oh yes, just as the Titanic was to big to sink
     
  10. Mudster

    Mudster Hardcore MB Enthusiast

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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
     
  11. st4

    st4 Banned

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    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.
     
  12. Dieselman

    Dieselman Banned

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    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.
     
  13. nick mercedes

    nick mercedes MB Club Veteran

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    That's how people who short sell want it to work...
     
  14. Dieselman

    Dieselman Banned

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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.
     
  15. carnut

    carnut Hardcore MB Enthusiast

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    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:
     
  16. st4

    st4 Banned

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    A great deal more than 88p. Nearer 300p
     
  17. Mudster

    Mudster Hardcore MB Enthusiast

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    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).
     
  18. Buggerlugs

    Buggerlugs Hardcore MB Enthusiast

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    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.......
     
  19. Mudster

    Mudster Hardcore MB Enthusiast

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    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......
     
  20. recycled

    recycled Hardcore MB Enthusiast

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    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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