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Wednesday, 4th November 2009 Change Date Latest Issue

HBOS 'faces nationalisation' if takeover rejected

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Published Date: 15 November 2008
HALIFAX Bank of Scotland could have to be nationalised if shareholders reject a takeover by Lloyds TSB, the bank's chairman has said.
HBOS chairman Dennis Stevenson said the bank might need to raise at least £12 billion in capital if investors threw out the deal and a potential £11.5 billion injection of taxpayers' cash.

If HBOS decided to go it alone, there was "no certainty" over sources of funding, he added. The bank could be forced to raise dearer funds from the Treasury.

Mr Stevenson was writing in a circular to shareholders ahead of a meeting in Birmingham to approve the deal on December 12.

Lloyds TSB is itself raising £5.5 billion in new funds underwritten by the taxpayer.

Meanwhile the bank has rejected claims that it was in danger of suffering a Northern Rock-style run as customers withdrew savings just before the takeover announcement.

One estimate based on analysts' research notes is that as much as £30bn could have been withdrawn. The bank has rejected this figure while conceding there was a withdrawal of deposits in September.



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1

bluehead,

edinburgh 15/11/2008 11:23:17
what's wrong with being nationalised?if I had my way all things that the people depend on for life would be nationalised,water, gas ,electricity should never be in the hands of people who are running this as a business,for profit,no wonder this whole world is in a state of collapse,it is more than obvious that greed has taken over completely,human life doesn't seem to matter anymore to certain people as long as they are making big bucks,if things keep on the way they are going to see a total collapse of all forms of decency,
this whole world is now beginning to smell like a piggery
2

alex paterson,

edinburgh 15/11/2008 12:44:53
To be nationalised is a great idea just go for it.
3

Mallory,

Edinburgh 15/11/2008 12:51:23
Brown and partners in government have shown themselves totally inept at running an economy.

What makes anyone think they'd manage to run banks any better than previous politicians managed to run British Steel, The GPO, British Rail, the National Coal Board etc etc?

4

Niko Bellic,

15/11/2008 15:37:02
Dear Howard,

It is with great regret that I regret to inform you that your entertaining skills are no longer needed here at HBoS.

We are facing a challenging economic background and we are proactively synergising a one-stop shop to refresh our marketing strategy and implementation.

If you seek redeployment within the company please call Chris Snotters at HR as he is currently recruiting for part time call centre staff.

Many thanks for your effort over the years.

We are charging you £10 for this letter,

Yours sincerely

HBoS
5

FTH22inarow,

15/11/2008 18:15:52
3 its your precious tory free market policy that has shafted us all remember
6

Churchill W.,

15/11/2008 22:01:23
The shareholders that took those massive profits in the good times should now return those profits to bail out their banks, or, see their shareholdings diminish.
7

COLINTON.MAINS,

Oakville Ontario 16/11/2008 02:08:14
IF.IT.HAD.BEEN.NATIONALISED,IT.MIGHT.NOT.BE.IN.TROUBLE
8

Julian.,

edinburgh 16/11/2008 22:39:16
#3,

And those that are running the banks at the moment are doing such a great job....so much so that half of them can't even survive without a government bailout.

Anyway, Brown wouldn't be running the banks anyway. The government would appoint people to the board, most of whom would probably come from the private sector.

 

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