Friday, July 25, 2008

Going, going gone?

JP Morgan leads possible HBOS break-up

JP Morgan, the US banking giant that rescued Bear Stearns earlier this year, has held talks with several interested parties about forming a consortium to break up HBOS, the UK's biggest mortgage lender which includes the Halifax brand. HBOS's shares have been buffeted by the credit crunch and by fears about its £4bn rights issue. Speculation about a takeover of HBOS has been growing following the dramatic fall in its share price. They added that a consortium has not yet been formed and the talks could fall through. A break-up bid for HBOS might meet opposition from the Financial Services Authority, which would not want one of Britain's biggest banks to be destabilised.

Posted by who stole my pension? @ 06:36 AM (1891 views)
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One thought on “Going, going gone?

  • The Banks that underwrote the HBOS rights issue got their fingers burned. Now, happily for them the shares have shot up on rumours of a takeover. Thus, should the underwriters wish, their HBos remainders can be disposed of profitably. This is simply “good fortune”, and it would be quite wrong to think that someone had dreamed up the take over story to get the underwriters off the hook. Of course when in March, the shareprice fell suddenly, this was, obviously a criminal conspiracy by evil traders, a conclusion still clung to, despite the fact that an investigation by FSA found no evidence to support it. Funny old world.

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