Challenge to Lloyds TSB takeover of HBOS
Nov. 8th, 2008 12:02 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
rhythmaningThe BBC is reporting that Sir Peter Burt and Sir George Mathewson are trying to put together an alternative to the Lloyds TSB takeover of HBOS.
This is interesting. Burt oversaw that merger of Bank of Scotland with Halifax, which could be seen to have lead BoS into its current situation. Mathewson oversaw the (up until last year) successful acquisative strategy that built RBS from a small regional bank operating in the UK to the fifth largest bank in the world (by market cap c. 2004).
They were both highly successful, but both were behinds their organisations' expansion that brought them to where they are today: essentially bankrupt and reliant on Government money to survive.
I am not certain I would trust them with HBOS, myself.
Interestingly, Mathewson is one of the SNP Scottish Government's team business advisers. The collapse of RBS and HBOS, and their survival using UK Government support, puts the lie to the SNP's claim to be able to succeed as an independent, small economy.
This is interesting. Burt oversaw that merger of Bank of Scotland with Halifax, which could be seen to have lead BoS into its current situation. Mathewson oversaw the (up until last year) successful acquisative strategy that built RBS from a small regional bank operating in the UK to the fifth largest bank in the world (by market cap c. 2004).
They were both highly successful, but both were behinds their organisations' expansion that brought them to where they are today: essentially bankrupt and reliant on Government money to survive.
I am not certain I would trust them with HBOS, myself.
Interestingly, Mathewson is one of the SNP Scottish Government's team business advisers. The collapse of RBS and HBOS, and their survival using UK Government support, puts the lie to the SNP's claim to be able to succeed as an independent, small economy.
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no subject
Date: 2008-11-08 09:03 pm (UTC)"The collapse of RBS and HBOS" - errmm, what collapse? Patrick you're as bad as the scaremongering media with that comment. Did you have anything to do with the Northern Rock collapse? - That really was a collapse by the way.
RBS are in full operation, as are HBOS, sure they're hitting bad times, just like all financial institutions at the moment, but they're both still going and they'll keep going as long as people keep their money in them.
The problem in the UK has been that the banks aren't lending to each other, and that's all that the government needed to do, but they've turned it into this big political thing where they are the saviours of these private companies who are in serious trouble. They should have lended them the money like the other banks do all the time and not made it a big political thing naming and shaming companies and suggesting they're all falling apart.
Scaremongering indeed.
no subject
Date: 2008-11-09 11:24 am (UTC)RBS shares that were worth £7.50 are now worth 64p (on Friday). The total market value of RBS is less than the amount of cash raised in the rights issue in April. And without government support, the bank would be bankrupt. So yeah, I call that a collapse.
My guess is also that the market value of RBS is less than the liabilities on its pension fund arising from the 33% fall in the FTSE All Share index in the last year. (I don't have the figures to prove it.)
I believe RBS is in this position because of Fred Goodwin's hubris over the purchase of ABN Amro (the victor's curse), due to the inability of the board to call a halt to the expansion: which is down to the culutre inculcated by Mathewson as chief exec and then later as chairman.