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Realistbear

H B O S Rights Issue Underwriters Faced With £100,000,000.00 Loss

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http://business.timesonline.co.uk/tol/busi...icle4375084.ece

The Times
July 22, 2008
HBOS underwriters hit with £100m paper lossChristine Seib
The investment banks underwriting HBOS’s £4 billion rights issue took a
£100 million paper loss
yesterday after the closure of one of the City’s least popular capital-raisings.
..../
Dresdner Kleinwort and Morgan Stanley are thought to hope that their support of the cash call, coming only weeks after UBS and Citigroup threatened to walk away from Bradford & Bingley’s (B&
B)
rights issue, will enhance their reputation as premier underwriters. Sources close to the banks said that the several near-collapses of B&B’s capital-raising, which has yet to close,
had shaken faith in the rights issue process.

Unless the banks can raise capital the credit crunch will shift up another gear. Funny that few people took up the banker's offer to bail them out by buying their shares?

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http://business.timesonline.co.uk/tol/busi...icle4375084.ece
The Times
July 22, 2008
HBOS underwriters hit with £100m paper lossChristine Seib
The investment banks underwriting HBOS's £4 billion rights issue took a
£100 million paper loss
yesterday after the closure of one of the City's least popular capital-raisings.
..../
Dresdner Kleinwort and Morgan Stanley are thought to hope that their support of the cash call, coming only weeks after UBS and Citigroup threatened to walk away from Bradford & Bingley's (B&
B)
rights issue, will enhance their reputation as premier underwriters. Sources close to the banks said that the several near-collapses of B&B's capital-raising, which has yet to close,
had shaken faith in the rights issue process.

Unless the banks can raise capital the credit crunch will shift up another gear. Funny that few people took up the banker's offer to bail them out by buying their shares?

And, apparently, Morgan Stanley shorted HBOS shares last Friday.

Talk about having your cake and eating it.

Must do their reputation a power of good.

'Who shall we ask to underwrite our rights issue?'

'How about Morgan Stanley? If the issue doesn't get away at least we know they'll cover their position.'

'But it won't make us look good will it? I mean, the very idea of an underwriter shorting the shares they are undewriting - it will make us look ridiculous and guarantee our share price will go down.'

'Yes, you could be right. Perhaps they should be black balled'.

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  • 401 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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