RBS and Lloyds to be nationalised?
Discussion
If only those dour old Yorkshire blokes at Halifax hadn't decided to "go all modern" (& greedy for market share)back in the 80's. They would still have been the major mortgage lender in the UK and sitting on millions/Billions of savers cash & regarded with a degree of reverence.
I guess that's what people call progress in the financial world...!
I guess that's what people call progress in the financial world...!
Thing is would Europe allow the UK Govt to Nationalise RBS & lloyds while HSBC & Bank Santander are in the market & cannot be nationalised by the UK Govt its not a level playing field.
likewise the car industry in the USA... how can 2 firms get massive Govt bailouts yet say Honda Toyota not?? GM should have folded.
likewise the car industry in the USA... how can 2 firms get massive Govt bailouts yet say Honda Toyota not?? GM should have folded.
Eddie the Ead said:
So lloyds is today trading at just 30p, There must be more to it then just the HBOS take over or why would the Directors of Lloyds allow it to go ahead if it meant nationalisation?
Lloyds were pressured into buying HBOS, which was screwed. Presumably that pressure is still there.sprinter885 said:
If only those dour old Yorkshire blokes at Halifax hadn't decided to "go all modern" (& greedy for market share)back in the 80's.
Well don't worry, it's the 'dour old Yorkshire blokes' who are suffering now, as it's their jobs that are going in order to safeguard the ones Brown and Darling care about up in Scotland.I freely admit that I know nothing about the intricacies of the Lloyds / Halifax deal and this statement is based entirely on the experience of someone I know who works for Halifax in Leeds.
Busa_Rush said:
The govt would be stupid to nationalise RBS and Lloyds, that would be as bad for the banking industry as doing nothing and allowing it to fail.
If RBS & Lloyds were allowed to fail the whole country would be reduced to something worse than Zimbabwe.Unfortunately we are in one hell of a mess with the banks, the easy answer may well be to let them go.....however the implications of this are horrific. If one went, they would all go, they would come down like a pack of cards......lending wouldn't just be in short supply it would be non-existant. Basically we would become a basket case in Zimbabwe style almost overnight. The economy would just stop, nothing (and I mean nothing) could be bought or sold.
This sounds very negative but just think about it......RBS goes to the wall, any business banking with them requiring credit will collapse. Anbody that banks wih RBS will have direct debits/standing orders canceled so they cannot pay their bills. If RBS goes what will people do who bank elsewhere? They will all try to withdraw cash from their banks as they will know they have no gurantees, the banks don't have the assets to cover the deposits, so in turn would also fall. In short the government cannot allow a mainstream bank to fail for fear of the whole system collapsing.And just to continue, the only real solution is going to be for the banks to get to grips with & quantify the so called "toxic" debt. This debt or a significant proportion of it must be taken on by the government & removed from the banks balance sheets. The banks can then start again, with new regulation & controls. Is this nationalisation of the banks? Yes probably, but there is really no way out, anything else I think is a bit like Canute trying to stop the tides.
GT03ROB said:
Largely cobblers.
It really would not have hurt the country to lose a couple of failing banks. The assets are bought up, the staff find new jobs. It happens.What is killing us is that these were based in Labour voting areas and Gordon would pay (is paying) anything to try to keep those jobs.
grumbledoak said:
GT03ROB said:
Largely cobblers.
It really would not have hurt the country to lose a couple of failing banks. The assets are bought up, the staff find new jobs. It happens.What is killing us is that these were based in Labour voting areas and Gordon would pay (is paying) anything to try to keep those jobs.
ferrisbueller said:
So given shares are 13p at the moment, what's the worst thing that can possibly happen? Dividend of something due on Mar 8th.
Tell me, as a total novice, what are the risks?
Labour nationalise the bank and gives you nothing for your shares. They have form in this department...Tell me, as a total novice, what are the risks?
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