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munimula

Lloyds Is Shrinking Its Balance Sheet

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Good analysis from Robert Peston.

Two fingers to Gordon and Alastair

Lloyds made such a mistake buying HBOS, they'll spend years cleaning up the bad loans that HBOS made and finally when they return to making sustained profits there will be uproar and a competition enquiry which should rightly split the bank up into smaller chunks. George Osborne has already indicated as much.

All this HBOS takeover will result in is massive job cuts, at a time of massive unemployment increases - well done Gordon

The best way of seeing this dependence is that there is a £223bn gap between Lloyds' loans and advances and its customer deposits, or the non-wholesale loans to the bank which tend to be more stable.

Some of this gap may be closed over the next five years by Lloyds' decision to run off some £140bn of loans to customers.

And there is already evidence that Lloyds is shrinking its balance sheet.

Which is probably the prudent thing to do. Although this reduction in lending risks bringing the bank into conflict with the government over whether it is fulfilling a pledge as a state-rescued bank to increase the supply of loans to homebuyers and also to business.

These results indicate that it is making good on the mortgage promise.

On loans to companies, Lloyds claims to be doing its bit - but that appears to be at odds with a 9% reduction to £198bn in the value of its loans and advances to corporate customers over just the past six months.

http://www.bbc.co.uk/blogs/thereporters/ro...hbos_doing.html

Edited by munimula

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...and yet i rang LTSB yesterday to enquire about problems with my savings account, and the advisor offered me a 95% mortgage! the world has gone mad...

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why is no-one asking why Lloyds bought HBOS ?

it was cover there own huge losses, blame HBOS & still get their Lloyds bonuses.

this bank was triple A rated just over a year ago ffs.

Probably so the other 'solvent' banks could secretly dump their bad loans on the new HBOS/Lloyds bank. Can't have all the banks looking shite at the same time. What would that do for confidence.

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why is no-one asking why Lloyds bought HBOS ?

it was cover there own huge losses, blame HBOS & still get their Lloyds bonuses.

this bank was triple A rated just over a year ago ffs.

zey vas only obeying orderz!

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Banks aren't for life, just for Christmas (bonii). The CEO of Lloyds just guaranteed himself a peerage, which if you aren't already aware: IS for life.

Capiche?

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