hooloovoo_42: (Wanker)

(no subject)

posted by [personal profile] hooloovoo_42 at 12:37pm on 17/09/2008
IMO, anyone who's been getting bonuses of £1m or more in the last 5 years should be forced to pay that back to the government to cover the costs of having to bail out any financial instution that's gone bust as a result of them being a greedy bastard.

The people I have sympathy with are the admin and support staff who are likely to be lose their jobs. And anyone who might lose their house and/or savings as a result of the current fiasco.

HBOS shares have been tanking over the last couple of days for no reason other than somebody somewhere is making speculative deals.
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(no subject)

posted by [identity profile] wellinghall.livejournal.com at 12:45pm on 17/09/2008
anyone who's been getting bonuses of £1m or more in the last 5 years should be forced to pay that back to the government

Even if those bonuses were in company stock that is now (almost) worthless?

HBOS shares have been tanking over the last couple of days for no reason other than somebody somewhere is making speculative deals.

Not necessarily - the easiest way for a shareholder (eg an insurance company or pension scheme) to limit their exposure to the UK mortgage market is to sell shares in the UK's largest mortgage lender, ie HBOS.
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(no subject)

posted by [identity profile] slakko.livejournal.com at 07:24pm on 17/09/2008
Actually, HBOS has a problem that the other big banks don't. It has a much higher ratio of lending to retail deposits than all of the other big UK banks. It therefore obtains money to lend on a larger part of its mortgages through the commercial market than any other UK bank (the previous recordholder in this regard being Northern Rock). When banks stop wanting to lend to each other, the cost of this commercial market borrowing (the interest rate on this is known as LIBOR) goes up, making companies who are more reliant on it less profitable.

If any big UK bank was at risk from the commercial lending market continuing to seize up (the issue which killed Northern Rock), it was HBOS. It was therefore the first to be the subject of short selling.
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