Monday, Apr 30, 2007
Very scary rumblings.....
Financial Times: Citigroup chiefs fear push for break-up
We all need to start looking at the ominous warning signs - banks cutting costs drastically to keep their dividend returns high so as to avoid activist hedge funds breaking them up. The obvious connection here will be a "flight to quality". It is a question of who blinks first in yanking loans away from "deadbeats". Back in 2001/2002 Fleming Private Bank and Cater Allen Private Bank were aggressive in removing accounts from anyone with under e.g. £50,000 balance (or some such figure). How long before we see the major retail banks just cutting their losses and running?
Posted by lvmreader @ 02:06 AM (41 views) Add Comment
1 Comment
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1. dohousescrashinthewoods said...
My wife went to see the bank to get our overdraft reduced as we are in the closing stages of wiping out all trace of debt (no mortgage either).
Our account manager was very conducive and offered to have our overdraft reduce by £100 a month until it is gone. He seemed like a genuine and honest chap (which seems unusual in retail) so I don't suspect cynicism.
@Ivmreader: If high street banks are looking to clean up peoples' overdrafts (cf HSBC last year), could this relate to "yanking loans away from deadbeats"?