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Hbos - Anyone Else Concerned?


jax39

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On hearing of their troubles Im wondering whether or not to take out my savings and put them elsewhere. I dont have much, but what I do have I cant afford to lose. I guess its more worrying for people with mortgages. I remember Northern Rock saying everything was fine and then they went under, could this be the same? Or is it worry over nothing?

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Don't sue me but i'd say it was worry about nothing. Northern Rock is now guaranteed by the government so it's pretty much safe. It seems to be a shock wave from the Lehmans bank failing - but the US has a totally different banking system to ours and its simply and investment reaction to what investors perceive as high risk - ie get out of those banks who loaned greatly to property deals and get into gold etc instead, which is providing high yields at the present time.

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Yestday HBOS's share price went to 88p but closed at 207p and are currently 175.5. Lloyds TSB have moved up 41 points to 320.75, I expect due to rumours of a merger. However, I'd say your savings are perfectly safe with HBOS, well as safe as any other high street bank.

 

The paragraph below came from: http://money.uk.msn.com/investing/articles...umentid=9618554

 

Focus on the banking crisis

 

The bank has steadfastly denied any rumours of difficulty, with a spokesman noting it is one of Britain's best capitalised banks. But this had not stopped the sellers who have caused carnage to its shares. Reports of a merger are something else though.

 

The bank's market value has tumbled from almost £60 billion in January 2007 to just over £8 billion yesterday, with £4 billion being lost since the start of this week.

 

Unfounded rumours

The Financial Services Authority said yesterday it was investigating unfounded market rumours that a British bank, again rumoured to be HBOS, was meeting the Bank of England to get help with liquidity.

 

View the latest HBOS share price

 

"There has been a series of completely unfounded rumours about UK financial institutions in the London market over the last few days, sometimes accompanied by short-selling," the FSA said.

 

HBOS looks a likely target for short-sellers, those who borrow shares in order to sell them and buy them back later more cheaply.

 

In a very brief statement to the Stock Exchange, the bank said: "HBOS has a strong capital base and continues to fund very satisfactorily."

Edited by Nettie
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My OH, who works in financial services, organises our pensions/savings bits and pieces, such as they are :rolleyes: and we have a bit of money with them but as it's nowhere near the £35,000 guarantee limit (unfortunately) it's staying where it is, as it's probably as safe there as anywhere. My view is that when people started panicking and withdrawing their money from the Rock it just made the situation worse, and the FSA/Bank of England or somebody should have stepped in and called a halt to it until things were sorted out.

 

I felt sorry for the bank workers losing their jobs earlier this week, the radio phone ins were full of people gloating and making comments like 'ha ha it serves them right', which I thought was very spiteful. The people at the top end have probably made a packet but that certainly wouldn't go down the chain to the workers at the bottom, or the indirect businesses that support them like taxi drivers, sandwich bars etc.

 

I'm not making light of anyone's worries, but it's struck me as comical that the Governer of the Bank of England has to write to the Chancellor to explain himself if inflation goes above the limit. I have visions of him getting lines or detention or something :laugh:

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