Friday, Feb 13, 2009
Utter disaster - HBOS announces a further £11billion of writedowns.
BBC News: Lloyds and HBOS humbled
The profits warning just released by Lloyds is shocking.
The loss at HBOS - which is a fraction under £11bn - represents a new record loss for a British bank.
Lloyds says that the loss on loans to companies is partly the result of Lloyds applying its more conservative accounting standards to HBOS's loan book - which is one serious kick in the tender parts for HBOS's previous executives.
HBOS also suffered the indignity of incurring further big losses on its holdings of assorted dodgy investments.
It is a terrible humiliation for HBOS's already bashed-up previous chief executives, Andy Hornby and Sir James Crosby.
Shares in Lloyds - 43% owned by the government - fell by as much as 40% on investor shock
Posted by little professor @ 05:57 PM (1061 views) Add Comment
11 Comments
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1. little professor said...
And guess who picks up the tab for this half-nationalized bank's massive losses?
What's even worse is Crosby, who was behind this shady accounting at HBOS, which has only just come to light since the Lloyds takeover, was made in charge of the banks review at the FSA. FFS.
2. enuii said...
I wonder how much the government knew about this when it was strong-arming LTSB to buy HBOS not 6 months ago.
3. paul said...
Its beyond belief isn't it? This cesspit of corruption and incompetence just gets deeper and deeper.
4. Whathpc said...
The concept of socio-economic really needs to be considered in relation to this banking fiasco and the bail-outs --- the government (surrounded by City cronies) has ONLY considered the economic aspects. The "socio" bit has still to kick in -- when Joe Public really understands the massive fraud that has taken place.
The public needs a simple example to understand the situation - sub/prime / CDO/ warrant etc (all just need to read BETS) - this example better illustrates what has happened. I buy a refuse bin for $1 and I personally calculated that it was worth $1000 10 months later and pay myself a bonus of $900. While the scenario is more complicated than this (largely as parties have done their best to conceal tracks / enhance plausible deniability) -- this is at the root of the current problem -- and the WRONG PEOPLE ARE BEING FORCED TO PAY FOR IT !!!!!!!!!
5. mdmick said...
The BBC News 24 journalist said that the share drop was in contrast to a banking confidence this morning because America had said that it was going to help out banks a lot.
I just get a feeling that we are about to see a volley of banks with 'surprise' news about how badly they are doing.
I might get my 20 pounds thirty pence out of the system while there is still time.
6. denzil said...
Is it possible to strip somebody of his Knighthood?
So, I would like to start with:
Sir James Crosby
that can be followed by the rest of Labour's knighted cronies topped off with the utterly incompetent Gordon Brown.
7. troy said...
imcompetence?
no, I don't think so.
all part of the planned wealth extraction mush!
dread to think what a knight stripped of his hood would look like!
8. flintster1994 said...
Tralc,
"dread to think what a knight stripped of his hood would look like!"
A very interesting thought!
9. Vin Rouge said...
@5 "Is it possible to strip somebody of his Knighthood?"
He would no longer be a Knight, he would just be a Hood. Quite an accurate description really.
10. who stole my pension? said...
It is time the LloydsTSB board walked the plank. They have robbed their shareholders to get a gong! What happened to "due diligence"?
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