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eric pebble

Hbos May Have To Raise £19 Billion Within Six Months

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From The Times

August 22, 2007

HBOS bails out own fund as effect of credit crisis spreads

"HBOS’s decision to finance Grampian from its own resources means that it may have to raise £19 billion within six months — and most of that within weeks unless credit conditions improve. The average maturity of the Grampian commercial paper is just 55 days."

http://business.timesonline.co.uk/tol/busi...icle2303044.ece

:unsure::unsure::ph34r:

Edited by eric pebble

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From The Times

August 22, 2007

HBOS bails out own fund as effect of credit crisis spreads

"HBOS’s decision to finance Grampian from its own resources means that it may have to raise £19 billion within six months — and most of that within weeks unless credit conditions improve. The average maturity of the Grampian commercial paper is just 55 days."

http://business.timesonline.co.uk/tol/busi...icle2303044.ece

:unsure::unsure::ph34r:

Worth watching this one - it might be the big faller that some are predicting. I doubt it, but worth keeping a close eye on it.

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Worth watching this one - it might be the big faller that some are predicting. I doubt it, but worth keeping a close eye on it.

I think this may be the big one. Because why on earth should things improve in the weeks to come? It's exactly this complacency that brought financial institutions in this situation first place. No sense of risk. The debt constipation is getting worse, the liquidity diarrhea prescribed by the central banks does not work.

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What about this

"Sources described Barclays’s use of the Bank’s emergency facility, which is priced at a punitive 1 per cent above base rate, as an operational issue and not related to fears over liquidity. It is the first time that the facility has been used since the credit market soured. "

Does it ring true or are Barlays at risk as well ?

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Presumably they want to avoid selling assets at "Fire Sale" prices so they borrow the money to avoid such a sale? All well and good if conditions improve but what if they don't??? :blink:

Scarey that this fund accounts for 57% of HBOS share price... you can see why they are desperate to support it.

Where is this money to support Grampian coming from? Surely they can't use depositor's money for this?

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Guest Popalot

HBOS run the Sainsbury's Bank Savings account..... Anyone care to advise on whether to pull out? :blink:

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Does it ring true or are Barlays at risk as well ?

In a world where banks were businesses and not the top of a great big pork factory that would be the case.

But we all get to bail these guys out. The best we can hope for is that we don't have to bail out every single dimwit mortgage borrower.

Hell, we can't let the banking system fail! Where would we be then? Next thing we'd be allowing nice young upper-middle class kids to work in manual jobs instead of at the BBC or in the City where they belong.

Are Barclays in danger? Well, a lot of poor sods who work at the local branch are in danger for they will take the fall for this.

(edited for a missing 'e')

Edited by dstars

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HBOS run the Sainsbury's Bank Savings account..... Anyone care to advise on whether to pull out? :blink:

was just thinking the same..

Actually I think Sainsburys Bank is owned half and half by HBOS and Sainsburys plc. Does that make it any safer though?

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