Re: HBOS : Sat Apr 06, 2013 7:39 am  

Chris28 wrote:

Even at the stretchiest stretch to say "nothing" is, well, stretching it. Maybe not the cause, but one of the cards that was pulled out of the house later on, to leave Gordon Brown and the Labour Party causing the crisis...

The global crisis was mainly caused by the investment arms of banks holding worthless derivatives that they had borrowed heavily against - once it became obvious they were worthless they could not borrow anymore and as such they would have defaulted on their older loans.

HBOS was not in that position.

Re: HBOS : Sat Apr 06, 2013 1:20 pm  

Sal Paradise wrote:

Well, well - nothing to do with the global banking crisis just a bunch of idiots making a series of very poor decisions.

'Nothing to do with the global BANKing crisis' even though they were in charge of a BANK!
Are you on drugs?

Re: HBOS : Sat Apr 06, 2013 1:25 pm  

Sal Paradise wrote:

Very different - RBoS went bust because of two things: casino banking/gambling on derivatives which turned out to be worthless and paying way too much for a ABN Amro.

HBOS went bust because of complete incompetence at the top which resulted in lending billions of pounds high risk poor quality loans.

You do know that both situations led to the perfect storm that was the banking crisis right?

Re: HBOS : Sat Apr 06, 2013 6:00 pm  

Sal Paradise wrote:

The global crisis was mainly caused by the investment arms of banks holding worthless derivatives that they had borrowed heavily against - once it became obvious they were worthless they could not borrow anymore and as such they would have defaulted on their older loans.

HBOS was not in that position.

HBOS were at the sharp end of the crisis - reckless lending, which at the end of the day was the whole cause of the crisis.