LloydsTSB and HBOS in merger talks

I wonder how much money a hedge fund could have made spreading this rumour just after buying a big chunk of HBOS when the shares were at 88p briefly this morning!
 
Hm...So, just taking over them? Or merging? As that's too different thing's normally :)

Hopefully this won't change anything to my bank anyway...I only have the cheap account anyway! :p
 
I'd assume a few jobs would be lost if the merger took place, they won't need 2 of every high level position, or do you think they will just continue as they are?

Plus, if this does go foward, can you imagine if the group ever got into financial trouble, it would be the end of half the banks in the uk
 
Delvis said:
Hm...So, just taking over them? Or merging? As that's too different thing's normally :)

Hopefully this won't change anything to my bank anyway...I only have the cheap account anyway! :p
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The BBC says merger, which I think would be a good assumption. HBOS are in trouble, but they're still the UK's biggest mortgage lender.
 
just when i thought i'd got rid of those idiots :(

moved out of HBOS in 2006, best thing I coulda done... now i'm gonna have to deal with them again
 
so.. halifax, bank of scotland, lloyds and tsb all the same company, northern rock owner by the government.

GREAT for competition.. I can hardly wait.
 
Burnsy2023 said:
The BBC says merger, which I think would be a good assumption. HBOS are in trouble, but they're still the UK's biggest mortgage lender.
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You're such a sensationalist when you post threads like this. You turn speculation into fact when posting it here (like with your thread about Lehman's filing for bankruptcy, when they hadn't).

They aren't in talks to merge to stay liquid. They are liquid, as the FSA have seen. If they really are in merger talks, it is to prove to everyone they are sound and stop the speculative short-selling of their shares.

Burnsy2023 said:
HBOS are in trouble, but they're still the UK's biggest mortgage lender.
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There is nothing at all to suggest this.
 
lol if that guy in the other thread had bought HBOS shares when he said he'd have made a nice little amount.

£10,000 investment would be worth around £16,000 right now. Not bad for a single day.

edit: 18k now.
 
Well this is interesting reading, I was just about to move a chunk of savings out the Halifax account. Can't afford to lose my money to a bank going down. If they are going to be foolish enough to get themselves in that position then I will punish them by withdrawing all my money :D
 
Jonny69 said:
Well this is interesting reading, I was just about to move a chunk of savings out the Halifax account. Can't afford to lose my money to a bank going down. If they are going to be foolish enough to get themselves in that position then I will punish them by withdrawing all my money :D
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Sounds like you're the foolish speculator here. Show me some concrete proof that HBOS is sinking, and without capital? By withdrawing money, you're not punishing anyone but yourself.
 
Just posted it in another thread, but there's a analyst saying that it wouldn't make any sense for them to merger, given that they're in very similar markets and both have a strong UK presence. The only way that a merger seems likely is that if HBOS goes under, which isn't happening.
 
JimpsEd said:
You're such a sensationalist when you post threads like this. You turn speculation into fact when posting it here (like with your thread about Lehman's filing for bankruptcy, when they hadn't).
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But the administrators are liquidating their assets, so it's only a matter of time.

JimpsEd said:
They aren't in talks to merge to stay liquid. They are liquid, as the FSA have seen. If they really are in merger talks, it is to prove to everyone they are sound and stop the speculative short-selling of their shares.
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Without the merger their liquidity could be called into quesion especially as they rely on the wholesale credit market to fund a lot of their lending, hence the downgrade of their credit rating.

JimpsEd said:
There is nothing at all to suggest this.
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I'm not trying to be sensationalist, but the short selling of shares is crippling HBOS' share price. As a highstreet bank they are fine, but they did need something to bolster their share price before they really start getting into trouble.
 
Burnsy2023 said:
But the administrators are liquidating their assets, so it's only a matter of time.
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At the time you posted the thread, no they weren't being liquidated.

Burnsy2023 said:
Without the merger their liquidity could be called into quesion especially as they rely on the wholesale credit market to fund a lot of their lending, hence the downgrade of their credit rating.
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The FSA have confirmed their capital and liquidity. "Call into question" is far different from your original "to stay liquid".

I'm not trying to be sensationalist, but the short selling of shares is crippling HBOS' share price. As a highstreet bank they are fine, but they did need something to bolster their share price before they really start getting into trouble.
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Well, you are being a sensationalist by extrapolating what are only unconfirmed reports, and glossing over the only concrete report we have of HBOS which is the FSA having reviewed their situation and confirming their sound grounding.

They don't need anything to bolster their share price; if their shares keep going haywire, the FSA will simply approve the suspension of the trading until things settle down - it often happens.

I swear, people on the Internet are worse than tabloids. They take early speculative reports of something, then repost it elsewhere as fact. Then some other idiot takes that 'fact' and reposts it elsewhere. Next thing you know you have an 'Internet fact'. They just get over-excited that they could be the first one to post something on the Internet, even if it is plucked from their arse.
 
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Burnsy2023 said:
So after HBOS shares taking an absolute hammering by the reclassifiction of their credit rating from A+ to AA-, it comes out that they are in advanced merger talks with Lloyds TSB to stay liquid.

http://news.bbc.co.uk/1/hi/business/7620483.stm

They are looking to create the UK's biggest bank.
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Just to clarify, S&P cut the rating to A+ from AA-.

They were also cut this morning by Fitch from AA+ to AA. All those ratings indicate good financial strength though.
 
JimpsEd said:
Sounds like you're the foolish speculator here. Show me some concrete proof that HBOS is sinking, and without capital? By withdrawing money, you're not punishing anyone but yourself.
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Nope, not at all. I don't know how banks work and, like I said, I can't afford to lose my savings. Any of it. I couldn't care less if there's concrete proof or not, if I think there's any risk at all I'll move my money somewhere safer. It's about 5 clicks and a password to dump it all in another account. Hardly punishing myself now, is it?
 
If I banked with HBOS my money would have been out days ago.

Would I care if they're really going under? Yes....but would I risk my life savings?
 
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