Monday, September 29, 2008

Northern Rock, B&B, Fortis and Hypo – who’s next? (oh no surely not RBS)

Hypo shares crash after loan deal

Shares in German lender Hypo Real Estate plunged after it struck a loan deal with a consortium of German banks. Its shares lost three-quarters of their value, falling to 3.39 euros, before a slight revival to 63% down at 5 euros. The firm did not reveal the names of the loan banks, or even the deal amount, which may be up to 35bn euros (£27.8bn,$51.21bn) say media reports. Hypo has been badly affected by the financial markets crisis as it borrows heavily from the interbank market. It is thought the deal has ensured financing for the Hypo until the end of next year.

Posted by jack c @ 10:34 AM (706 views)
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6 thoughts on “Northern Rock, B&B, Fortis and Hypo – who’s next? (oh no surely not RBS)

  • Funnily enough I have been watching RBS and a friend of mine dumped their shares last week saying he was most concerned………….And he lives in the USA…

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  • Better not be RBS… I work there

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  • beartil get your ears to the ground for inside gossip…..

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  • The belief is that we are well capitalised due to going to market early. Remember the questions early on about taking on £12billion in extra money in march/april at the time of Bear Stearns? Well now that seems like a very good plan to everyone, in hindsight.

    The main business is sound. Unfortunately only a very few will know how much we bought in US mortgage CDOs or MBSs, that’s the really toxic debt which causes all the problems. The exposure of ABN Amro is also critical and completely unknown to the main body of people in RBS.

    However RBS is a very big group and has a lot of non-investment banking businesses, so is not the same as US investment banks, as well as having 2 massive retail banks that have lots of deposits.

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  • 4. beartil2010 said…
    The belief is that we are well capitalised due to going to market early.

    I used to work for HBOS and I recall (stupidly) voicing my bearish opinion to one of the bosses at a conference. My comment that I thought the housing market was unsustainable and could lead to serious consequences was totally dismissed, and I was told how well capitalised HBOS was and that their strategy was far less risky than other banks.

    This is one of the reasons I have difficulty accepting the conspiracy theorists view that the boom and bust have been orchestrated, when complacency and incompetence apparently abounds. Of course, you could argue that the boss concerned didn’t believe it and was just spouting the company line to the minions.

    I have to say that I am keeping my fingers crossed about the Lloyds baleout as I am becoming increasingly worried about the part of my pension that is with HBOS (due in 3 years). The pension fund has gone from significant excess to a shortfall over the years and I dread to think where it is at today.

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  • Yes – to add to that – the belief is that if we hadn’t gone to market before we would be right in the sh** now, so it’s lucky we did.

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