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Lloyds Investors File For Losses They Claim Were Incurred In Hbos Rescue

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http://www.theguardian.com/business/2014/aug/06/lloyds-action-group-investors-claim-losses-hbos-rescue

A group of investors yesterday filed a claim for compensation from Lloyds Banking Group for losses they claim they incurred during the rescue of HBOS in 2008.

The Lloyds Action Now activist group has spent years assembling the case, which argues that the true health of HBOS was deliberately concealed from investors when Lloyds was taking over the troubled bank. The enlarged bank later had to be bailed out with £20bn of taxpayer money.

No specific amount of compensation has been outlined in the claim, but it is argued that £12bn of shareholder value was lost when HBOS was taken over.

These are not the only court proceedings to be filed against one of the banks rescued by taxpayers during the crisis. Royal Bank of Scotland shareholders are claiming more than £4bn because, they argue, they were misled by the bank during a cash call it launched before being bailed out by the taxpayer.

Taxpayers own 81% of RBS and 24% of Lloyds. There is speculation that the government intends to dispose of the rest of its stake in Lloyds before the general election next year.

On the compensation claim, a spokesman for Lloyds said: "The group's position remains that we do not consider there to be any legal basis to these claims and we will robustly contest this legal action."

The Lloyds Action Now shareholders said they had named a number of former Lloyds directors in the claim, including the former chairman Sir Victor Blank, the former chief executive Eric Daniels and three other former directors.

The shareholders argue that information about the emergency funding HBOS was receiving, such as the £25bn received through the Bank of England's emergency liquidity assistance facility, was not disclosed at the time of the Lloyds deal. Their case, which Lloyds has until December to formally respond to, also alleges that there was a loan from the US Federal Reserve that was not disclosed.

There are 7,500 shareholders signed up to the lawsuit. An application has been made for a group litigation order to allow up to 800,000 more to join, and to open the door for major institutional investors that may have an interest. The case is being funded by unidentified specialist investors that support litigation claims.

So in some respects this is specialist investors who bought shares prior speculating there might be a litigation claim?

If this gets to court it's going to be very interesting. I wonder who'll be called to give evidence?

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In Lloyds case more than any others, there are very specific circumstances.

Confidence Trick

Today’s news about the government supplying an additional £60 billion to the Scottish banks last autumn is shocking, but not surprising. The explanation is that it was done on the quiet so as not to damage confidence. Or in other words, it was a con trick. We hear they repaid the money a few months later: it’s not yet specified, but I guess they drew on the funds that are now taxpayer shareholdings.

Now I’m no lawyer, but I understand that obtaining money by deception is fraud, and is a serious crime. That’s why public companies are required to publish accounts and to have them audited: so that people dealing with them can assess the financial risks in doing so. That includes shareholders. Was anyone who bought RBS or HBOS shares while the loans existed defrauded? Seems like they should have a case.

But the time that was happening was also the time when safe-and-solid Lloyds bank, with an excellent dividend but without the spectacular gamblers’ returns of the Scottish banks, was taking over the zombie HBOS – the biggest basketcase of all. Lloyds went from being the healthy bank that hadn’t needed a rights issue to being itself a basketcase needing a government bailout. Contrast Barclays: they were in worse shape than Lloyds pre-crash, but came out on top by buying Lehman’s assets from the receiver, as Lloyds should’ve done with HBOS.

We know Lloyds shareholders were seriously shafted by some combination of Lloyds own board and government pressure. But Lloyds shareholders also had a vote. Not a very useful vote, given that the big institutional shareholders were also HBOS shareholders who stood to see those holdings wiped out. But nevertheless a vote, and that was taken in the absence of financial information that was clearly as relevant as it was huge.

The inescapable conclusion seems to be, Lloyds shareholders were defrauded. Massively!

I was a Lloyds shareholder myself when all this started, and indeed, these shenanigans turned me from a long term buy-and-keep shareholder to a trader, as I took advantage of the wildly-fluctuating market. Since I’ve made a net profit trading Lloyds shares during and since the crash, I’d be hard-pressed to demonstrate a loss, so I don’t see mileage in my joining a class action, or anything else that might be about to happen. But I can still be pissed off by this dishonesty.

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I'm a former Lloyds shareholder so I received a message about this, but I can't find a detailed explanation of what the potential costs are for me of joining this lawsuit. I can't imagine that I can tag along for free.

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I'm a former Lloyds shareholder so I received a message about this, but I can't find a detailed explanation of what the potential costs are for me of joining this lawsuit. I can't imagine that I can tag along for free.

I'm guessing it will be similar to the PPI claim adverts you see on TV.

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I'm a former Lloyds shareholder so I received a message about this, but I can't find a detailed explanation of what the potential costs are for me of joining this lawsuit. I can't imagine that I can tag along for free.

What kind of message? Can you post a link? If it was snail-mail, googling for some distinctive passage from it should find it.

I don't get messages like that, as my Lloyds shares were held in a nominee account (my SIPP).

I'm guessing it will be similar to the PPI claim adverts you see on TV.

Entirely possible. But not necessarily.

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All values and prices are set by the Bank of England and the Fed. Sue them.

They triggered the boom, they triggered the crash, they re-floated house prices again to make banks solvent.

The general public should most efinitely be suing their central banks for losses in not just overseeing but promoting the largess in their fraudulent banking friend's business models. No bankers went to jail because they would have started pointing their fingers up the chain.

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It looks similar to the AIG suit that is getting underway. I think that Paulson, Bernanke and Geithner have all been called as witnesses.

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In Lloyds case more than any others, there are very specific circumstances.

Confidence Trick

ANYONE HERE who is part of the group suing Lloyds re: HBOS:

You MUST - as a MAJOR part of your evidence/case make sure that the Judge/Jury read and watch EVERYTHING below here in my signature -- i.e. EVERYTHING about LIAR LOANS & Mortgage Fraud -- planned, orchestrated and carried out MASSIVELY by "Sir" [as he was then]James Crosby and his cohorts.

Read this too:

http://www.dailymail.co.uk/news/article-2306376/Sir-James-Crosby-HBOS-chief-savaged-reckless-incompetence-gives-knighthood-175-000-annual-pension.html

http://www.housepricecrash.co.uk/forum/index.php?/topic/104373-sir-james-crosby-he-is-mr-liar-loans-he-got-knighthood-from-brown/page-11

Edited by eric pebble

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What kind of message? Can you post a link?

No link, but here's the text:

A group of Lloyds TSB shareholders has successfully applied for a Group Litigation Order in the Chancery Division of the High Court. This order authorises them to advertise their litigation in the following terms:

On 22 August 2014, the High Court made a Group Litigation Order ('GLO') in respect of litigation that has been commenced by certain shareholders in Lloyds TSB Plc against a number of former directors and against Lloyds Banking Group. The action alleges that Lloyds TSB directors breached tortious and fiduciary duties owed to shareholders causing shareholders to suffer loss as a result of its acquisition of HBoS. Lloyds Banking Group denies these allegations and has made clear that it will defend the claim.

We have been contacted by Harcus Sinclair Limited, the firm of solicitors acting for those shareholders who choose to sign up as Claimants. They have informed us that there will be no upfront costs if shareholders wish to participate in the claim.

It is, however, for Harcus Sinclair Limited to advise you on the consequences of participation. The purpose of this communication is purely to inform you of the existence of the claim. In making you aware of it, we are not providing you with advice.

Interested shareholders who wish to bring a claim and be added to the Register of Claims held by the Court should get in touch with Harcus Sinclair Limited as soon as possible. Shareholders will need to sign up by 10 November 2014 and can sign up online by visiting www.lloydscase.com Please have your share dealing customer number to hand.

If you have any queries then please contact lloydscase@harcus-sinclair.ltd.uk, not us. We are informed that information on the sign-up process can be found on the case website. If you have any queries, please call Harcus Sinclair Limited on 020 7539 2915.

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Can we all have a gamble and if it doesn't work find someone to blame and make a claim......win.win.

....privatise gains socialise losses. ;)

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