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Monday 10th August 2009
With Lloyds bank rumoured to be on the verge of a £15 billion fundraising there can be few other companies which have suffered such a dramatic demise in their fortunes. This is a company which in the midst of the UK financial recession were seen as one of the stronger and more conservatively run in the industry until the fateful day when the call came to takeover HBOS.
While there is speculation and rumour regarding how and why the company agreed to take over HBOS, with suggestions in the market place that the UK government was behind the move, there is no doubt this has to be one of the worst moves of all time. Due diligence appears to have been rushed in order to try and save the UK banking industry although ultimately at the expense of Lloyds bank shareholders.
The full state of the HBOS loan book was not made available until after the deal had gone through and the situation worsened as debt write-offs began to grow. The rumoured £15 billion fundraising should go a long way towards giving the company a firm base for the future but this will be in excess of £30 billion which the combined entities have raised from shareholders over the last eight months. Will Lloyds bank ever retain its position in the higher league of the UK financial industry?
Bank accounts News - Who broke Lloyds bank?
Apologies for title but I did think it sounded funny
With Lloyds bank rumoured to be on the verge of a £15 billion fundraising there can be few other companies which have suffered such a dramatic demise in their fortunes. This is a company which in the midst of the UK financial recession were seen as one of the stronger and more conservatively run in the industry until the fateful day when the call came to takeover HBOS.
While there is speculation and rumour regarding how and why the company agreed to take over HBOS, with suggestions in the market place that the UK government was behind the move, there is no doubt this has to be one of the worst moves of all time. Due diligence appears to have been rushed in order to try and save the UK banking industry although ultimately at the expense of Lloyds bank shareholders.
The full state of the HBOS loan book was not made available until after the deal had gone through and the situation worsened as debt write-offs began to grow. The rumoured £15 billion fundraising should go a long way towards giving the company a firm base for the future but this will be in excess of £30 billion which the combined entities have raised from shareholders over the last eight months. Will Lloyds bank ever retain its position in the higher league of the UK financial industry?
Bank accounts News - Who broke Lloyds bank?
Apologies for title but I did think it sounded funny
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