Tuesday, Jul 22, 2008
Debtors in arrears can expect no sympathy from HBOS
Telegraph: HBOS boy wonder must now turn into Scrooge
After the worst rights issue in U.K. history. Hornby must become the Ebenezer Scrooge of UK banking. He must be as tightfisted on costs as Scrooge and as much of a kill-joy on all but the most cautious of growth plans, just as the cold-hearted Scrooge would be. Debtors in arrears can expect no sympathy and will be dealt with ruthlessly. HBOS is focused on lending to UK house buyers and corporates that has left the bank looking particularly vulnerable as far as investors are concerned.
Morgan Stanley and Dresdner Kleinwort, which underwrote HBOS's £4bn rights issue, will own approaching 10pc of the banking group after investors shunned the capital raising. They now have 2.8billion invested in HBOS. Morgan Stanley also disclosed it had shorted 2.3pc of HBOS's stock on Friday afternoon!!!!
3 Comments
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1. Tara747 said...
Isn't the first sentence of the article incorrect????
2. p. doff said...
They haven't really 'raised' £4 billion. They've just nicked it from the trouser pockets of shareholders. But the shareholders own HBOS, so........?
3. mark wadsworth said...
Wot? Morgan Stanley has shorted HBOS? But it owns ten percent of HBOS, or something. WHy not just sell the shares.