Monday, Jul 21, 2008
Hmm... that's quite a high percentage
The Times: HBOS rights issue snubbed by 92% of investors
HBOS has this morning announced one of the most disastrous rights issue in City history, with just 8.29 per cent of the bank's £4 billion cash raising taken on by its shareholders.
The bank was upbeat this morning. "The bottom line is, we've raised £4 billion of capital," said a spokesman. "Just like ships need more ballast in heavy seas, banks need more capital in tougher times."
Posted by gardeniadotnet @ 08:28 AM (971 views) Add Comment
28 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. gardeniadotnet said...
"Just like ships need more ballast in heavy seas, banks need more capital in tougher times."
Not sure why I find this analogy funny, but I do.
Sounds like something from the Bird and Fortune School of Economics.
2. Happy Mondays said...
"Just like ships need more ballast in heavy seas, banks need more capital in tougher times."
Sounds like another Justin timberlake song to me gardeniadotnet? i say again! Step Away From JT, he cannot be good for the economy!
However Bird and Fortune, now they are funny!
3. Planning4acrash said...
It doesn't matter, because central banks will step in. We loose both ways. Now, here's the clincher, they keep pushing, when will we wake up, smell the coffee and fight the system?
4. sovietuk said...
Is this because investors see a rights issue as either a bale out or a flaming cheek or both ?
5. paul said...
"just like when you go on holiday and leave a tip, banks need a tip to pay for bubbly at the shareholders meetings"
If banks really needed more capital, they'd establish overseas operations in high interest countries, and start offering higher savings rates.
The fact is, they look to the taxpayer first (via a pliant government) before considering any real hardship such as cutting bonuses or losing jobs.
6. paul said...
soviet, if the HBOS shareholders are anything like the one I know, then its cheek.
He didn't really understand what a rights issue was but when I put it to him that either he participates or sees his shares diluted he was horrified and outraged.
7. gardeniadotnet said...
Just learnt a new financial term to drop into conversation at my next cocktail party - "the rump."
FT: HBOS shares to be offloaded
http://www.ft.com/cms/s/0/8a5c2c8a-5696-11dd-8686-000077b07658.html?nclick_check=1
8. gardeniadotnet said...
sovietuk said...Is this because investors see a rights issue as.....a bale out
No - a BAIL out HAHAHAHAHAHAAAAAAAAHAeeeuuuuggh.
Oh, never mind.
9. inbreda said...
"Just like ships need more ballast in heavy seas, banks need more capital in tougher times."
...and presumably just like investors need shares in dead-in-the-water companies like HBOS.
10. Whostolemyendowment said...
Ships and balast - maybe it comes from the latest insipid Halifax advert { we are saving....we are saving....} and the office block that floats off in to the sunset needs to be kept upright - with the Titanic scene of de Caprio and Winslet at the bow.......erm, didn't Titanic hit an iceberg?
www.youtube.com/watch?v=OVGvWGyh7wg
11. paul said...
hehe. Good point inbreda.
Or even "just like investors need dead-weight shares in rough seas". Hmmm. Indeed.
12. mark wadsworth said...
This is brilliant! One of the underwriters, Dresdner, is itself in deep sh1t, they have to do a capital raising, a merger or a sale
http://ftalphaville.ft.com/blog/2008/07/02/14234/commerzbank-dresdner-step-up-merger-talks/
13. Ketha said...
Hmm. Say what you like about the rejection but HBOS raised funds at just the right time, it was underwritten. No other bank cound now pull this off.
I must declare an interest, I work for HBOS, in mortgages, in their Estate Agents Branches, in the Midlands. It's like the eye of the storm here.
14. george monsoon said...
Can someone explain what this is all about?
how will it affect my ability to buy a home?
15. george monsoon said...
Can someone explain what this is all about?
how will it affect my ability to buy a home?
16. paul said...
George, it means that the banks are looking to borrow money from you. Or each other. Or from anyone. The lenders themselves are up the creek.
They will soon be pricing their savings accounts to attract savers (so you can get a good rate saving up for a deposit - or whatever) and current mortgage holders will be squeezed until the pips squeak.
The lenders and the underwriting investment banks have no choice. They are up aginst it.
17. gardeniadotnet said...
George.
The music has almost stopped.
What happens next is anyone's guess.
18. malct said...
George M - in order for banks to loan out £200,000 say, they need a tiny fraction of that amount in real money. The actual percentage is so small, I've lost track of how small it is - but whatever it is, they haven't even got that - as gardennetting says - the music has stopped - and the chairs have all wented.
19. malct said...
george m - here's another point of view
Making the World Safe....for Bankers
by Henry Makow Ph.D. – (From Feb. 2002. Revised July 19, 2008)
http://www.thetruthseeker.co.uk/article.asp?ID=8997
20. Planning4acrash said...
Malct, great article. However, a world safe for bankers is not even safe for them. They take out their own kind that step out of line. That's what criminals do.
21. gardeniadotnet said...
>Making the World Safe....for Bankers
by Henry Makow
You're making me think again. Stop it!
22. gardeniadotnet said...
Happy Mondays said...
"Just like ships need more ballast in heavy seas,
Banks need more capital in tougher times."
Sounds like another Justin timberlake song to me gardeniadotnet?
Noooo! It's Britney, surely?
23. gardeniadotnet said...
Ketha said...I work for HBOS, in mortgages, in their Estate Agents Branches, in the Midlands. It's like the eye of the storm here.
My sister-in-law also works for HBOS.
She says she's being paid for doing nothing, but neither she, nor anyone else in her department, seems to know why!
24. george monsoon said...
Many thanks for the replies, Malct summed it up for me. The banks are broke.. completely.. this is insane.. what can WE do about it?
25. p. doff said...
Ketha.
How do you like the fact that the value of your 'sharesave' and share option 'bonus' has dropped from £11 ish to £2.76 ish. Don't forget that your low salary was justified by the bank on the basis of your other great benefits like 'Sharesave'. Also don't forget that the bonus aspect of your remuneration package won't count towards your final salary pension scheme.
Oh those heady days at the national conference when things were on the up, with good ole Andy on the stage patting himself on the back to strains of Tina Turner singing 'Simply the best' over the PA system.
The rights issue robs small private investors/shareholders, who are nothing but cannon-fodder. It's only the hierarchy and big-boys that can manipulate the system to their own advantage.
26. Planning4acrash said...
Simple, take government back, declare the banks criminals, try them for conterfiet, fraud, etc. default on ALL the debt, because all debt equals all money, the currency will need replacement, use what gold we have left to set up a new commodity backed currency. Bring the troops back (we can't afford the change without non-intervention).
27. This comment has been removed as it was found to be in breach of our Blog Policies.
28. James said...
You are Stanley Green, AICMFP.