大象传媒

When will these highly paid assessors of assets understand that a capital asset is only worth and can be valued at what someone is prepared to pay for it at this time.
On that basis most of the assets of HBOS are currently worthless until banks put money back into the system and grant mortgages or loans. The drop in interest rates to 1% Bank rate is like the gov't's VAT reduction of 2.5% achieving zilch and helping no one.

In hindsight, it looks like it would have been a whole lot better to put HBOS into receivership and compensate the savers. It would probably have been cheaper in the long term for the tax payer, who will probably be baling out not only HBOS but also LLoyds for the foreseeable future. Considering how Brown and Darling drove the takeover, it seems that they did so without checking ( as did Lloyds ) just how much of a mess HBOS was actually in. Another prime example of Brown's fiscal incompetence.

This comment was removed because the moderators found it broke the house rules. Explain.

I don't see why anyone should be surprised by this news. The loss was inevitable. Only its size was open to question.

"Scotland's reputation for canny money management"

Ha Ha Ha Ha Ha

You are joking right?

It is no wonder HBOS are in the mess they are in, I tried to settle an outstanding loan that I have with them last week, the loan has an endowment policy assigned to cover the debt. they said I could not cash the endowment in to pay of the loan the endowment is worth 12k loan balance 5k i had also hoped to clear overdrafts aswell. however it now seems i will have to let arrears build up before they claim the funds.
it is time these executives realised what there staff are up to.

A few simple statements -

1. The Banks are not using the capital provided to them by the Government to lend to businesses.

2. Businesses are folding as a result of not being able to secure working capital from the Banks to allow them to continue trading.

3. Taxpayers will have to fund benefits etc for these businesses workers when they become unemployed.

Based on the three statements above, it is time for the Government to either
a. force the Banks to lend to businesses or
b. begin lending directly to businesses and force the Banks to begin repaying the capital provided to them (ie. to set up a Nationalised Bank to lend to business).

For your info cr1pr0 (post no 6), the bank has title to your endowment policy and you are unable to surrender it yourself. However the Bank can surrender it to repay your debt, and should do so upon your request.

So Douglas do we really have the answer to all our banking problems rolled up altogether in one 鈥渄iffering accountancy approaches鈥�?
If HBOS books are to be believed they are 拢7bilion better than Lloyds TSB say they are because both outfits use different accountancy methods鈥�?
Therefore are we to believe either company are telling the truth? Surely using two different valuations and accounting methods will produce totally different results, two plus two do equal four, not three and a half nor four and a half.
鈥淭here are lies, dammed lies, and statistics鈥�, now we have introduced to the world the latest version of that well worn phrase.
鈥淭here are lies, dammed lies, statistics, and bankers鈥� when the truth eventually bites these people in their nether regions, can it be arranged that we the little people can be allowed to push the button that will release the guillotine?

Well done Gordon and Al !!!!
You have created the ultimate zombie bank.
Wouldn't letting the banks go broke, compensating savers and paying off mortgages etc. not have been more beneficial and cheaper long term?

Why are there no criminal proceedings over this I will never know.

Once again people with skills and knowledge advise their colleagues about potential hazards but the arrogance and clique mentality disregard this and sack the people with the knowledge.

It is not unique to HBOS this culture but unique to the UK .

I know of one department at HBOS where at least 4 of the 30 odd call centre staff have Degrees but are left to fester rather than be used for their intellectual capital .

What a waste .

HBoS Corporate were very proud last year of having achieved some kind of advanced status with Basel II. My (limited) understanding of this is that Basell II was supposed to limit banks from reckless lending, so avoiding the kind of mess they've got into.

Could you give any insight into how HBoS managed to be compliant with Basel II, run up such reckless lending AND be within the law?

People stand to lose the homes, their jobs, their savings, their pensions because something went badly wrong at HBoS - we really ought to know if the regulations were side-stepped.

#11 freakowski

Like you I'm no expert in this field, but my understanding of Basel II was that it would require banks to increase their asset to debt ratio - especially for risky debts.

Since clearly the banks had no idea of the risk of the debt they were investing in, any pretence of compliance with Basel II could only have been illusory.

As a lowly employ of HBOS I have been horrified at the extent of the financial mess that we are in. It should be remembered that the vast majority of HBOS employees are simply that - employees. We have no say in any business decision and were misled by our senior management also. Many employees have lost all of any bonuses they received after being encouraged to invest in HBOS shares and were told by Mr 'Green grocer' Hornby that the organisation during the later stages of the collapse - around October last year was financially sound! I baulk at the idea the Mr Hornby is now receiving a consultancy fee - presumably advice is along the line of stack 'em high sell 'em cheap.

"Yet again, Scotland's reputation for canny money management is being dragged through the mud. The only mitigating factor is that it's competing with so much other dire news today from the rest of the world economy."

It's time we put the reputation for canny money management to bed. Like most national traits, it was never more than a speck of truth in a sea of nonsense. Perhaps if we hadn't deluded ourselves thinking we were oh-so-canny, our banks wouldn't have overextended themselves.

We are being told that the losses announced on Friday relate to bad debts in the Bank of Scotland corporate banking division.

Does that mean that the bad debts relating relating to mortgages in the Halifax subsidiary have yet to be announced.

Could the Supreme Leader have an "afterlife" as an Edith Piaf tribute act?

See this website's .

There's a shock! Brownturn anyone?

Post or reactive moderation for all except CBeebies, please!

PS to my #16

What a shame! Someone in auntie (or No.10?) has decided comparisons between Duff Gordon and Edith Piaf should not be enouraged and renamed the link .

Post or reactive moderation for all except CBeebies, please!