So the safest bank around ( Lloyds) is about to go under
#31
Gordo
#33
Noone's saying the banks aren't to blame. It is also the fault of the hapless idiots who borrowed money they couldn't afford to repay. It's just a ****ter that those of us that didn't over-borrow are now suffering because of the idiots (both bankers and the borrowers who over-stretched themselves).
(I'm confused by you mentioning interest rates - a) they've been low for a number of years; and b) - see above. If people didn't like the rates, they didn't have to borrow!).
Gordo
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OK, the banks shoild have behaved more responsbly, I am not denying this, believe me, there is no love lost for Andy Hornby here, but everyone needed to behave more responsibly.
Why do millions of people think they deserve endless lines of credit? It's like parents who blame everyone else for their child's behaviour. Maybe if they took a bit of responsibility......................
The banks just did what they were allowed to under the regulations, so they were no worse than anyone else.
I notice no one complained about the banks behaviour when everything was rosy
Geezer
#36
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The roots of the present crisis can be found way back in the reign of Bill Clinton's administration
They were the people who told the banks that it was racist to refuse mortgages to broke-assed serial loan defaulters, because historically they happened to be black or hispanic
So to avoid being branded as such, American banks extended loans to all and sundry, safe in the knowledge that when (not if) they defaulted, sale of their houses would cover the debt
The problems arose when the banks couldn't sell this vast stockpile of houses for anything even close to what was owed on them
These are the poisonous debts that have been repackaged again and again, then sold on to unsuspecting banks worldwide
Lloyds, who I bank with too BTW () Seemed to have done a damned good job of steering clear of all this, only to be brought down by the OESI and his bumbling incompetence
They were the people who told the banks that it was racist to refuse mortgages to broke-assed serial loan defaulters, because historically they happened to be black or hispanic
So to avoid being branded as such, American banks extended loans to all and sundry, safe in the knowledge that when (not if) they defaulted, sale of their houses would cover the debt
The problems arose when the banks couldn't sell this vast stockpile of houses for anything even close to what was owed on them
These are the poisonous debts that have been repackaged again and again, then sold on to unsuspecting banks worldwide
Lloyds, who I bank with too BTW () Seemed to have done a damned good job of steering clear of all this, only to be brought down by the OESI and his bumbling incompetence
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This simply is not true. Lloyds will pay out a bonus this year, but only to those divisions that made a profit, and then only to people who have satisifed the requirements. LTSB made £2.4 billion profit, why shouldn't they?
We (the HBOS part) are unlikely to get anything.
Geezer
#38
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Unfortunately Geezer, the ill informed tripe is the only message being reported by the so-called 'responsible' jounalists covering the story
In fact I read the lastest report on the BBC's website. and was so incensed by the obvious laziness of the reporting, that I emailed the BBC to complain! Both about that story in particular, and the disgracefully poor standards of current BBC news reporting in general
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Also, that sort of organisation is only a dream for most people, monopolies commission wouldn't usually allow it. Despite HBOS having lost so much money, they are a very talented bunch of people, and when Lloyds give them their parameters (which will be much more conservative) they will make the company alot of money again (this time hopefully without killing the economy ) LBG is in a very strong position, I would imagine the other banks are casting a somewhat envious eye over us.
Geezer
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High risk borrowers were charged more (interest) remember = more money (higher profit) to the Banks when debt was being repaid albeit higher chance that they'd default along the way. Good grief, perhaps they saw it coming; no worries though as the taxpayer has / will bail them out
TX.
TX.
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Well, the same morons who took out the loans then thought they had got away without repaying them have now repaid them through their taxes!
The public should see this paying for their greed
Geezer
The public should see this paying for their greed
Geezer
#46
D
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I would disagree.
OK, the banks shoild have behaved more responsbly, I am not denying this, believe me, there is no love lost for Andy Hornby here, but everyone needed to behave more responsibly.
Why do millions of people think they deserve endless lines of credit? It's like parents who blame everyone else for their child's behaviour. Maybe if they took a bit of responsibility......................
The banks just did what they were allowed to under the regulations, so they were no worse than anyone else.
I notice no one complained about the banks behaviour when everything was rosy
Geezer
OK, the banks shoild have behaved more responsbly, I am not denying this, believe me, there is no love lost for Andy Hornby here, but everyone needed to behave more responsibly.
Why do millions of people think they deserve endless lines of credit? It's like parents who blame everyone else for their child's behaviour. Maybe if they took a bit of responsibility......................
The banks just did what they were allowed to under the regulations, so they were no worse than anyone else.
I notice no one complained about the banks behaviour when everything was rosy
Geezer
The banks aren't blameless, but the greed which has caused this financial crisis has not been restricted to those institutions.
And again, I completely agree with the above - it's very easy to point out the problems with hindsight, but go and search for threads a year and a half old and see how many people were warning that banks were lending too much, or that investment funds were making too much money by investing in credit default swaps and other non-vanilla instruments.
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Unfortunately Geezer, the ill informed tripe is the only message being reported by the so-called 'responsible' jounalists covering the story
In fact I read the lastest report on the BBC's website. and was so incensed by the obvious laziness of the reporting, that I emailed the BBC to complain! Both about that story in particular, and the disgracefully poor standards of current BBC news reporting in general
In fact I read the lastest report on the BBC's website. and was so incensed by the obvious laziness of the reporting, that I emailed the BBC to complain! Both about that story in particular, and the disgracefully poor standards of current BBC news reporting in general
#49
High risk borrowers were charged more (interest) remember = more money (higher profit) to the Banks when debt was being repaid albeit higher chance that they'd default along the way. Good grief, perhaps they saw it coming; no worries though as the taxpayer has / will bail them out
TX.
TX.
The margin lenders charge is the risk premium - well understood in the corporate world, much less so in the personal finance world. I'd argue the risk premiums the banks were charging many customers were nowhere near high enough - which is why it's now all coming home to roost.
#50
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Quite right - everyone is very quick to turn round and blame 'the banks' for the current problems, but it shouldn't be forgotten that many individuals have behaved in a very similar manner - borrowed too much, assumed house prices will only go up etc.
The banks aren't blameless, but the greed which has caused this financial crisis has not been restricted to those institutions.
And again, I completely agree with the above - it's very easy to point out the problems with hindsight, but go and search for threads a year and a half old and see how many people were warning that banks were lending too much, or that investment funds were making too much money by investing in credit default swaps and other non-vanilla instruments.
The banks aren't blameless, but the greed which has caused this financial crisis has not been restricted to those institutions.
And again, I completely agree with the above - it's very easy to point out the problems with hindsight, but go and search for threads a year and a half old and see how many people were warning that banks were lending too much, or that investment funds were making too much money by investing in credit default swaps and other non-vanilla instruments.
Ermm There were plenty people suggesting the banks were lending too much
ffs when someone is ALLOWED to borrow 7 times their salary leaving enuff left over for sandwiches something is wrong
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You are right, there were plenty of people warning about the bank, but vastly more who didn't care, and that was the problem. Everyone rubbed their hands with glee as the property market spiralled out of control, spent money on endless credit cards offered to them. It has come back to haunt them.
I don't know why you can't see that it is not the banks alone who have created this Guilty of all of the above perhaps?
Geezer
#52
Les
#53
The margin lenders charge is the risk premium - well understood in the corporate world, much less so in the personal finance world. I'd argue the risk premiums the banks were charging many customers were nowhere near high enough - which is why it's now all coming home to roost.
D
(apologising profusely for the corporate speak speak )
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It's interesting that in all this no one has had a go at estate agents. They after all pretty much have created the property price problem. What qualifications do they have really? They just arbitrarily set a price, and considering they take a percentage and not a set fee, it's been in their interests to get it as high as possible.
You only have to look at some of these property programs when they get 3 different ones to come and evaluate them to see just how poorly it is done.
Geezer
You only have to look at some of these property programs when they get 3 different ones to come and evaluate them to see just how poorly it is done.
Geezer
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