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Who On The High Street Has The Highest Exposure?

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Was this the right thing to do?

They seemd to be a bank focussed on sustainability and not massive short term gain and I thought their exposure might be a little more limited.

Who is potentially going to have the biggest problems?

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Good call on HSBC, a hedge fund manager told me they are in it for 11 billion of losses. He has sold his HSBC shares as well as he expects the STHTF big time.

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From today's Telegraph

Panmure Gordon analyst Sandy Chen said the major risk for banks with large asset-backed commercial paper exposures was a reduction in liquidity could lead to impairment charges.

He estimates Barclays is the most exposed at £20bn-25bn, then HBOS with £20bn and HSBC with £15bn.

http://www.telegraph.co.uk/money/main.jhtm...11/cnfsa111.xml

SB

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I am trying to get my head round this one.The site's whipping boy is Northern Rock since around a quarter of its mortgage capital is raised via the wholesale markets which will be CDO securitised.However,since the CDOs are secured against collateral that has risen 10% this year(I know don't laugh but the Bulls believe Haliwide anyway ;) ) it will surely be the clearing Banks like HSBC and RBS where 80% of profits are raised via investment arms who will be most at risk.

Obviously the Northern Rock would be in trouble as would other Banks if the UK market faltered .And to be honest it does feel like one minute to midnight.The ''chav layer '' brought on board to form the next layer of the pyramid ,and recruited by the MPC (led by Rachel Lomax) from August 2005 to keep the show on the road ,appear to be going delinquent disappointingly quickly.

Edited by crashmonitor

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This might seem a silly question but, considering that if a bank goes bust you lose your money, if you have a mortgage with a particular bank do you then own the house outright?

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This might seem a silly question but, considering that if a bank goes bust you lose your money, if you have a mortgage with a particular bank do you then own the house outright?

Edit.

Edited by crashmonitor

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Guest Winnie

OK, not quite the High Street, but what is behind Icesave? Is it a massive hedge fund? I have £100k in it.....Should I extract it, and where is the safest destination? Thanks guys

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This might seem a silly question but, considering that if a bank goes bust you lose your money, if you have a mortgage with a particular bank do you then own the house outright?

The mortgage book will be sold at a discount to another lender.Your mortgage will remain the same.

As far as depositors are concerned they would probably end up with at least 80% of their money back after liquidation and the FSA scheme should protect all the first 3K and 90% of the 3K-35K tranche.In practice I doubt it would work in a wholesale housing collapse as the funds would not be there.Especially as large depositors money over 35K cannot be raided to cover the under 35ks losses,this can only be done with recourse to a tiny FSA pot.

Edited by crashmonitor

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OK, not quite the High Street, but what is behind Icesave? Is it a massive hedge fund? I have £100k in it.....Should I extract it, and where is the safest destination? Thanks guys

Yep you wonder if the extra is worth it.6.2% Icesave or 5.45% NSand I Income Bonds ,also instant access.On the 1 September I have a £217000 Bond maturity with Northern Rock and I am beginning to count the days.I could access it today and take a £1500 60 day penalty,but I don't think things have got that bad yet(have they?).

If we all start running for cover in government backed savings the credit crunch is going to get cataclysmic.

Edited by crashmonitor

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Yep you wonder if the extra is worth it.6.2% Icesave or 5.45% NSand I Income Bonds ,also instant access.On the 1 September I have a £217000 Bond maturity with Northern Rock and I am beginning to count the days.I could access it today and take a £1500 60 day penalty,but I don't think things have got that bad yet(have they?).

If we all start running for cover in government backed savings the credit crunch is going to get cataclysmic.

NS and I take weeks to turn around applications.

Imagine what's going to be like now!

Edited by Ash4781

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Can someone with more knowledge of this help me out here. I know that some of these major banks are seriously exposed to the worldwide credit issues. But even if the worst happens and, for example, RBS loses £10billion overnight as a result would this lead to their collapse ?

They are on track to make pre tax profits of £10 billion this year alone.

Would I be right in concluding this credit crunch may lead to huge changes in the way the big banks lend their money, but is very unlikely to actually lead to their downfall ?

Cheers

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Panmure Gordon analyst Sandy Chen said the major risk for banks with large asset-backed commercial paper exposures was a reduction in liquidity could lead to impairment charges.

He estimates Barclays is the most exposed at £20bn-25bn, then HBOS with £20bn and HSBC with £15bn.

Does anyone know how large these losses are in relation to their capital base?

I know HSBC own First Direct but are they likely to effected also or are they separate entities in this regard?

HSBC's share price has not been hit too hard but I expect the losses to increase - we are only at the beginning of this crisis.

Thanks.

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Thanks - typical you lose your money but they still get theirs!

If your mortgage has been securitised and sold, they've already had theirs!

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