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Ash4781

Another Lender To Reign In Lending ?

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http://business.timesonline.co.uk/tol/busi...icle3474088.ece

London shares were on the fall again following a sell off on Wall Street on Friday after grim economic news and poor figures from insurer AIG.

HBOS was leading the London index down after UBS added its voice to those analysts downgrading the bank - formed form the merger of Halifax and Bank of Scotland - following results last week.

UBS said HBOS was "exposed to many areas of market concern" including, the "quality of treasury assets". The bank revealed last week it had £7 billion exposure to Alt A mortgages - a notch higher quality than subprime.

"With a retail loan to deposit ratio of 160 per cent HBOS remains heavily dependent on wholesale funding. With term funding markets still difficult we believe the group is currently funding its loan growth much more short-term than it would like. We suspect that if funding markets do not normalise in the third quarter then volume growth will be pulled back aggressively," said UBS.

It put a 650p price on the bank with a neutral rating. Bear Stearns also downgraded the bank over its £42 billion exposure to asset backed securities.

HBOS lost 5 per cent to 574.5p.

Another lender to reign in lending ?

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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