Lloyds Lost £6.3 Billion

[Lepista]

http://news.bbc.co.uk/1/hi/business/8538080.stm

yes, very slow today - how come it's not been posted yet????

[Barb E Dahl]

http://news.bbc.co.u...ess/8538080.stm

yes, very slow today - how come it's not been posted yet????

Disbelief perhaps?

[Gone baby gone]

Taxpayer supported banks losing billions...

Doesn't even pass for news these days

[porca misèria]

Disbelief perhaps?

HPC folks gloating over the profits we realised by dumping the shares last year at about twice today's price?

[aa3]

They only lost £17 million a day last year.. thats pretty good for these guys.

With 146,000 employees in the combined company of Lloyds and HBOS.. they only lost £42,430 pounds last year per employee.

[Prof]

They only lost £17 million a day last year.. thats pretty good for these guys.

With 146,000 employees in the combined company of Lloyds and HBOS.. they only lost £42,430 pounds last year per employee.

I think they deserve a bonus.

[the end is a bit nigher]

Well, i'm still not sure the Great British public have got it yet, but anyone listening to the BBC commentary this morning should have got a hint.

Losses were due to right-offs on commercial property and over-generous lending against residential property during the boom. Virtually nothing to do with investment banking.

[fluffy666]

Well, i'm still not sure the Great British public have got it yet, but anyone listening to the BBC commentary this morning should have got a hint.

Losses were due to right-offs on commercial property and over-generous lending against residential property during the boom. Virtually nothing to do with investment banking.

So, where did the cash come from for those loans?

[the end is a bit nigher]

So, where did the cash come from for those loans?

It came from the money markets and savers but was lost against over-inflated property. The usual portrayal is off investment bankers dealing in derivaties, but the reality is quite different. Of course that doesn't suit the politics of some of the posters on here, which is why I rarely bother these days.

[LuckyOne]

It came from the money markets and savers but was lost against over-inflated property. The usual portrayal is off investment bankers dealing in derivaties, but the reality is quite different. Of course that doesn't suit the politics of some of the posters on here, which is why I rarely bother these days.

I agree with you.

80% of the problem globally came from simple lax lending standards. 20% came from the derivatives which helped allow these lax lending standards to be perpetuated.

The belief that asset prices (primarily but not exclusively property) would only ever rise and the willingness to lend against asset prices rather than cashflow is the root of the problem.

Some of the lax lending was specifically mandated by governments. Most of it arose due to the neglect of governments.

The greed and stupidity of lenders (bankers) is as much as a problem as the greed and stupidity of borrowers.

[Ash4781]

They call this 'the HBOS legacy'

[MinceBalls]

I think they deserve a bonus.

+1

[contractor]

Lloyds/HBOS sells crap to RBS.

RBS sells some other crap to HBOS.

Both take commission and book it as profit. Where does the money come from, and who ends up paying?

They should have wound RBS and HBOS down in a structured fashion, instead its now good money after bad with bonuses paid under the auspice of returning money to the taxpayer.

I bet these feckers believe in perpetual motion the way they make money go round and round.

[swissy_fit]

They lost 6 billion in a year when house prices actually rose.(or at least, the HP indexes rose)

Imagine how much they're going to lose if the predicted "significant correction" comes.

Sorry I mean how much the taxpayer is going to lose....

Let's say the value of your house drops 20%, and your disposable income drops due to rising prices and taxes to bail out the banks even further as they write off tens of billions more, while still paying the investment bankers bonuses. Assuming you're one of the lucky ones with a job....

That's going to make people feel good, innit?

[swissy_fit]

Lloyds/HBOS sells crap to RBS.

RBS sells some other crap to HBOS.

Both take commission and book it as profit. Where does the money come from, and who ends up paying?

They should have wound RBS and HBOS down in a structured fashion, instead its now good money after bad with bonuses paid under the auspice of returning money to the taxpayer.

I bet these feckers believe in perpetual motion the way they make money go round and round.

IMO the failure to do this was the biggest act of treason ever carried out by a Briton. Brown and Darling will be pilloried in history for it. This one decision has set Britain on the road to ruin, and there's no way back now even if the Tories thought differently(which they don't).

[abharrisson]

+1

Of course if they'd had an investment banking deivision they might have paid out £1.6Bn in bonusses..... but the losses in total including the bonuses might have reduced to more palatable £3.6 Bn..... but of course those who are in favour of not paying bonuses would then have been up in arms even though the net result was £3bn odd lower loss.....