Lloyds TSB, HSBC, HBOS: Shareholders Update

HBOS have shunned the offer from Sir George Mathewson ex Chief Executive of Royal Bank of Scotland (RBS) and Sir Peter Burt ex Chief Executive of Bank of Scotland to take control of HBOS and to keep the mortgage lender independent.

HBOS are in the middle of a take-over from Lloyds TSB who already own mortgage arm, Cheltenham & Gloucester. The merger will create a super bank which many are skeptical of due to its sheer size in the market.

Sir Peter and Sir George both said in an interview with the Telegraph they were not able to give details of how much capital HBOS would need to stay independent or to give details on crucial issues.

HSBC chief executive Michael Geogegan’s warned that state-sponsored bail-outs are a bad move for western banks. He also adds that the risk involved could end up in management team failures.

The comments show extreme frustration that HSBC executives have felt regarding the recent government bail-outs, especially when even through the heavy losses they suffered in the US mortgage market HSBC have managed to stay in better shape than most of its rivals throughout the credit crisis.

Reports from Nationwide Building Society yesterdays shows the UK housing market fell 80 percent this year, and it is reported house prices will continue to fall for another, warning that it will not be to 2010 that the property market will stabalise.

Source: Sharecast