Saturday, March 15, 2008

Oo bugger thats why their share price is sinking!!

HBOS raises £750m of new capital in a bid to beat credit crunch

HBOS has raised £750m of new capital at a staggering interest rate of almost 9.5%, in a clear sign of the funding crisis facing the world’s banks

Posted by cheekie charlie @ 09:05 PM (1275 views)
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3 thoughts on “Oo bugger thats why their share price is sinking!!

  • It astonished me when I read the article. If HBOS cannot borrow at less than 9.5%, how on earth can it lend at less than that?! OK, it might try balancing the books by slashing savings rates, but then savers will move their money elsewhere.

    Northern Crock II: The Yorkshire Scot

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  • stillthinking says:

    Why is this? As commented they could have raised their rates for savers instead. I hope the banks haven’t become an informal cartel colluding about interest rates offered to savers.

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  • who stole my pension? says:

    I cannot get the Times link to work. I have found some information on this web site http://markwadsworth.blogspot.com/2008/03/hbos-raises-750m-of-new-capital.html however, I am not familiar with the accuracy of this web site. HBOS have been lending in a risky way in the past (see http://business.scotsman.com/bankinginsurance/Merrill–raises-concerns-over.3878286.jp ) so HBOS may now be struggling to raise cash. I think they may avoid asking savers for cash as savers are getting worried over why banks are offering high interest rates. Anybody else got any opinions that they would like to share?

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