HBOS Gone

[janaage]

Sam are you being serious?  You work in the financial services industry and yet you're thinking of disinvesting due to the current situation with the Halifax?  I'm amazed, like I was when idiots queued up to get their money out of NR last year.

Fair play if that was a wind up, but if not I am truely astounded.

[Colin Todd]

Up to £35k savings is guaranteed by the government

[Samdy Gray]

Maybe I was being a bit irrational. Obviously I'm aware of the FSCS if everything goes belly-up, but the thought of the Lloyds deal not going through, HBOS going bust and me then not having access to any money until I've sorted a claim with the FCSC does worry me slightly.

[janaage]

The liklihood of the govt allowing a corporation like Halifax go bust is so very unlikely.  Yeah it would take time to make a claim through the FSCS, but the chances of this going that far is so remote.  A sensible head is needed in these times, look at NR that was apparantly on the verge of going under (when it never was). 

[Ardiles]

Absolutely.  HBOS is the UK's AIG...too big for the government to let it fail.  I'd leave your money where it is Sam.  (The HBOS share price has been climbing all morning, by the way - a sure sign that the markets are fairly confident that the deal will go through as planned.)

[ghanimah]

As I said in a previous post, this is far from a done deal yet, the takeover is in direct breach of EU competition laws, this one: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2004:024:0001:0022:EN:PDF

(the same one that prevented Lloyds from taking over Abbey National in 2001) and as such it needs to be approved by the EU Commission, regardless of what our Government wants. 

I don't think HBOS will fail either, but it's going to be more than a case of a 'simple' merger, and could yet get a lot messier.

[Ardiles]

I have a feeling that with the stakes being so high, the Government may well just end up telling the EU Commission where they can get off.  (I know that's not how it usually works, but we're living in unusual times.)

[chalkies_shorts]

If you're the Chief Exec of one of the big financial institutions you're in a great position. You can take as much risk as you want and if it works then you get shed loads of money. If it fails then you get shed loads of money and someone else will pick up the tab and your garden gets to look nice I'm not quite sure how this will lead to responsible behaviuor and you can forget the FSA they're as effective as our back 4.

[ghanimah]

I have a feeling that with the stakes being so high, the Government may well just end up telling the EU Commission where they can get off.  (I know that's not how it usually works, but we're living in unusual times.)

How I wish you were right, but unfortunately EU law has precedence over our own law. A recent EU report has stated on this very issue: "Policy actions in the context of crisis management [must] preserve a level playing field, and any public intervention must comply with EU competition and state-aid rules."

i.e a financial crisis is no excuse

[genf_stfc]

Absolutely.  HBOS is the UK's AIG...too big for the government to let it fail.  I'd leave your money where it is Sam.  (The HBOS share price has been climbing all morning, by the way - a sure sign that the markets are fairly confident that the deal will go through as planned.)

or a sure sign that speculators are driving the price up and will soon dump them for a big payout...

[Colin Todd]

Th

How I wish you were right, but unfortunately EU law has precedence over our own law. A recent EU report has stated on this very issue: "Policy actions in the context of crisis management [must] preserve a level playing field, and any public intervention must comply with EU competition and state-aid rules."

i.e a financial crisis is no excuse

that dosnt seem to stop the french and german governments stepping in when neccessary

[Power to people]

I wonder who will be next then in the UK to have problems - don't seem like this 'credit crunch' is going away anytime soon

[Samdy Gray]

Panic over, shares back up 35% since the markets opened this morning.

Now if only I'd bought a couple of grands worth, they'll be worth shed loads in a couple of months.

[nevillew]

and you can forget the FSA they're as effective as our back 4.

FSA = F**ks sake Aljofree ?

[janaage]

Panic over, shares back up 35% since the markets opened this morning.

Now if only I'd bought a couple of grands worth, they'll be worth shed loads in a couple of months.

Bloody hell Sam you really go by short term events.  Medium to long term will tell us if the "panic's over mate", not a morning's trading on the LSE.  Would not enjoy having a financial adviser like your good self looking after my affairs ;-)