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laurejon

Bank Of England Governor Mervyn King Is Today Meeting The Heads Of The Country's Five Biggest Banks

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Bank of England governor Mervyn King is today meeting the heads of the country's five biggest banks - including HBOS, whose shares slumped yesterday after a series of false rumours spread by speculators swept through the stock market.

HBOS will be joined at the meeting in Threadneedle Street by the other "Big Five" banks - HSBC, Royal Bank of Scotland, Barclays and Lloyds TSB. The bank chiefs are expected to call on King to pump more money into the financial system to ensure that banks cannot be brought down by a liquidity crisis.

Angela Knight, chief executive of the British Bankers Association, told the BBC's Today programme that she was confident the Bank would take action.

"The Bank of England is very keen to ensure that we have good strong confidence in our market - after all we've got good strong banks," she said.

HBOS shares recovered some ground in early trading this morning, rising around 3% to 459.75p, although they later came back to 451.75, a gain of just over 1%. The group, Britain's largest mortgage lender, saw its shares crash by almost 20% at one stage yesterday, although they ended 7% lower at 446.5p after the authorities stepped in to stem the panic.

In an unprecedented move yesterday, the Financial Services Authority launched an investigation into dealings in the shares of financial companies amid a series of scaremongering stories that have threatened to destabilise the entire financial sector.

It is searching for evidence of so-called "trash and cash" trades, where an investor sells a share then starts a rumour to force the price lower so the stock can be bought back more cheaply.

HBOS, which owns the Halifax, is one of the most widely-held shares in the London market, with some 2 million private investors on its shareholder register.

Its chief executive, Andy Hornby, has fiercely dismissed stories that the group is facing a Northern Rock-style liquidity crisis. In a memo to the group's 65,000 staff, he said he was doing all he could to "rebut these unfounded and malicious rumours".

Meanwhile, a profit warning from Credit Suisse piled on the gloom in the banking sector today, with shares in London and Europe making a shaky start to the last trading session before the long Easter weekend.

The FTSE 100 index fell a further 60 points in the opening minutes of trading and by 9am was trading 40.8 lower at 5,504.1. Other European markets were also down and in Switzerland shares in Credit Suisse fell by 5%. Rival UBS, one of the banks hardest hit by the credit crunch and also the subject of a recent rumours over its liquidity, tumbled more than 6%.

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Guest grumpy-old-man

big rate drop to follow, in a couple of months time we think ?

can they save it. :lol::lol:

EVERYTHINGS BROKEN. :lol::lol::lol:

no more 'glue' left to patch it all together, proper fiscal policy is the way forward, well that, & we need to make stuff again.

Hang-on though we can't, everyones forgotten how to make stuff & we have sold all the machinery haven't we ?

Although we do apparently have a specialised heavy engineering base according to some on here.

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big rate drop to follow, in a couple of months time we think ?

can they save it. :lol::lol:

EVERYTHINGS BROKEN. :lol::lol::lol:

no more 'glue' left to patch it all together, proper fiscal policy is the way forward, well that, & we need to make stuff again.

Hang-on though we can't, everyones forgotten how to make stuff & we have sold all the machinery haven't we ?

Although we do apparently have a specialised heavy engineering base according to some on here.

Make things again? Manufacturing? Haha. That needs investment. Theres a credit crunch remember? Isn't this something the investment banks were once good at. Raising money for "proper businesses" and productive enterprise and not dead property that just sits there and needs constant repairs.

Then again the money thats being p*ssed away on NR and supporting the City would probably buy Nissan, Honda, Toshiba etcc.. (not entirely sure of their capitisations but would put it into some perpective).

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Guest grumpy-old-man
Make things again? Manufacturing? Haha. That needs investment. Theres a credit crunch remember? Isn't this something the investment banks were once good at. Raising money for "proper businesses" and productive enterprise and not dead property that just sits there and needs constant repairs.

Then again the money thats being p*ssed away on NR and supporting the City would probably buy Nissan, Honda, Toshiba etcc.. (not entirely sure of their capitisations but would put it into some perpective).

so, so true rover2000.

It p1sses me off immensely that years of engineering experience has been lost because of the fooken beancounters. <_<

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"Its chief executive, Andy Hornby, has fiercely dismissed stories that the group is facing a Northern Rock-style liquidity crisis. In a memo to the group's 65,000 staff, he said he was doing all he could to "rebut these unfounded and malicious rumours".

We did not go to the Boe for emergency funding, its all lies, we are going tomorrow instead all with the other banks. Crash on!!

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no more 'glue' left to patch it all together, proper fiscal policy is the way forward, well that, & we need to make stuff again.

If you could increase GDP by 'manufacturing' Chav's, the UK would be a superpower.

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Guest grumpy-old-man
If you could increase GDP by 'manufacturing' Chav's, the UK would be a superpower.

:lol::lol::lol:

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  • 292 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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