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’Risk Factor 1.3
Lloyds Banking Group will publish the prospectus for its £4bn share placing on Wednesday afternoon and all eyes will be on paragraph 1.3. It covers potential changes Lloyds could be forced to make in order to get EU State Aid Approval for this share placing,
Lloyds to cut 625 jobs in integration
Lloyds Banking Group will cut a further 625 jobs – including 300 in Scotland – as it integrates the corporate bank of HBOS, the lender it rescued in October. Lloyds, which has cut 2,225 jobs so far this year,
Debts, defaults and UK commercial property
On Monday evening, De Montfort University will publish its annual, and influential, Commercial Property Lending Report. But thanks to the FT’s property correspondent, Dan Thomas, FT Alphaville has had a sneak preview of the survey,
Bankers discover the year of ‘sorry’
“Sorry” was not really a word that figured prominently in a big banker’s lexicon — unless, that is, it was merely to express regret for missing a deal or an important client. How times change. Since early last year,
An impaired Lloyds
Well, Lloyds’ first-quarter trading update was never going to be spectacular. The bank, unlike its competitors, is widely expected to report negative earnings this year. In a surprise statement issued today,
HBOS’s Hornby to forgo cash payment
Andy Hornby, the former chief executive of HBOS, which was taken over by Lloyds Banking Group, has agreed to give up about £700,000 in discretionary cash payments from the bank to try to defuse a potential row over rewards for failure,
How to make (a lot of) money from UK banks
It’s one of those headlines guaranteed to make hedgies who’ve had a bad – or even just mediocre – year weep into their balance sheet: “Paulson May Make $428 Million Shorting Lloyds, HBOS”.
As Bloomberg reports on Wednesday:
Shorting windfall for Paulson
Paulson & Co, the hedge-fund firm that made $3bn-plus betting the US housing market would collapse, may have made £311m since September by short selling Lloyds Banking Group and HBOS, reports Bloomberg.
UK set for 70% stake in Lloyds
The enormity of Lloyds’ ill-fated takeover of HBOS will be exposed on Friday, as the bank’s board considers a Treasury rescue plan that could hand the government an economic stake of about 70% in the merged bank through the issue of non-voting,
Lloyds ‘needs to raise £11.2bn’
Okay, this is from someone who would probably describe himself as being ‘cautiously bullish’ on the British banking sector – Tom Raynor at Citi.
Profit warning raises capital concerns — In previous research (Darkest Before the Dawn — 27 January 2009) we estimated that Lloyds Banking Group (LBG) could get through the economic downturn by raising as little as £3bn in equity at 60p per share.
UK toughens stance on bonuses
The UK government on Sunday suggested it would veto payments to senior staff in lenders partly or wholly owned by the taxpayer. Lloyds Banking Group has defended plans to pay its staff bonuses, reported to total £120m,
Anxious eye on Lloyds shares
The UK government will monitor the share price of Lloyds Banking Group on Monday, as it seeks to avoid marking this week’s first anniversary of the nationalisation of mortgage lender Northern Rock by taking another bank into public ownership,
The curious case of Lloyds/HBOS
It’s Friday the 13th — that seems as apt a date as any for Lloyds to unleash a £7bn writedown in HBOS’s corporate division.
A key question is why this bit of news was released during lunchtime on Friday (when FT Alphaville was conveniently ensconced at the Boot and Flogger).
HBust
Special Friday afternoon delivery from Lloyds Banking Group (our emphasis).
Since its 12 December 2008 trading update, HBOS’s 2008 trading has been further impacted by increasingly difficult market conditions,
FSA had HBOS risk fears in 2002
The UK’s FSA watchdog raised concerns about the risk management of HBOS as early as 2002, the FSA revealed Wednesday amid an uproar over the resignation of the bank’s former CEO as deputy chairman of the regulator.
FSA – new statement on HBOS
Yet another statement from the FSA – this time with quite a bit more detail of the FSA/KPMG investigation into the allegations raised by Paul Moore – the former HBOS head of risk.
_________
KPMG to FSA: Yours!
Earlier the FSA passed the Paul Moore whistle-blowing buck over to KPMG. And now, KPMG are passing it back.
Statement below just received from the firm:
KPMG can confirm that in 2005 it investigated allegations made by Paul Moore to HBOS and the Financial Services Authority regarding certain aspects of the internal risk function at the bank.
FSA: s’ok, KPMG said HBOS was fine
Shame on KPMG.
Statement from the FSA, emphasis ours:
The Financial Services Authority (FSA) can confirm that specific allegations made by Paul Moore in December 2004 regarding the regulatory risk function at HBOS were fully investigated by KPMG,
Sir James Crosby’s full statement
In the light of recent media coverage I have decided to issue a short statement.
Just over three years ago I resigned my position as CEO of HBOS.
Towards the end of my time as CEO of HBOS, as part of a wider restructuring of group functions the Risk Function was elevated to report direct to the CEO.
Blood at the FSA
Moore’s revenge.
11.32 RTRS: EX-HBOS CEO JAMES CROSBY SAYS RESIGNING FROM THE FSA BOARD WITH IMMEDIATE EFFECT
11.33 RTRS: EX-HBOS CEO JAMES CROSBY SAYS ACCUSATIONS BY FORMER HBOS RISK MANAGER HAD NO MERIT
11.36 RTRS:
HBOS: The Moore Memo
MP’s on the UK’s Treasury Select Committee caused quite a stir yesterday when they disclosed that they had been given testimony by Paul Moore, the former head of risk management at HBOS. Testimony in which Moore had identified “a total failure of all key aspects of governance”
Ex-HBOS chiefs accused on controls
Former HBOS directors faced fresh accusations on Tuesday of ignoring warnings over its rapid growth from an ex-head of regulatory risk at the bank. As former bosses of the UK bank and its troubled peer RBS offered up apologies to a parliamentary inquiry over the near-collapse of the banks,
Markets Live – Select Committee Special, Part II – the Bankers
An early start for Messrs Murphy and Hume this morning. They will be live blogging the Treasury Select Committee meeting from the Thatcher Room, Portcullis House.
And this promises to be a lot of fun as selected bankers face the wrath of Rt Hon John McFall MP and his committee members.
Henderson nears deal to buy New Star
Henderson, the fund manager, is on the verge of sealing a deal to buy New Star, the troubled asset management group founded in 2000 by John Duffield, for £115m for a mix of shares and cash. The acquisition will follow the completion of the debt-for-equity swap agreed last month between New Star and its lenders.
Lloyds Banking Group – a defence
Lloyds Banking Group has flown out of the starting blocks on Wednesday morning, showing a clean pair of heels to the rest of the UK banks.
Its near 30 per cent advance is in large part due to bullish note from house broker Citigroup,
Farewell HBOS
It’s been fun.
HBOS plc
14January 2009
Suspension of listing and trading
Following applications by HBOS to the UK Listing Authority and the London Stock Exchange respectively, HBOS announces that the listing on the Official List of the securities detailed below and the trading of such securities on the London Stock Exchange are suspended,
Lloyds Banking Group – ‘Yours, taxpayer’
HBOS today announces that, as at 11.00 a.m. on 9 January 2008, being the latest date for receipt of valid acceptances and settlement in full under the Open Offer, it had received valid applications in respect of 17,692,895 Open Offer Shares,