Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
How to Trade Binance Vanilla Options for the First Time on Bitcoin Crypto's - 2nd Aug 21
From vaccine inequality to economic apartheid - 2nd Aug 21
Stock Market Intermediate Top Reached - 2nd Aug 21
Gold at a Crossroads of Hawkish Fed and High Inflation - 2nd Aug 21
Bitcoin, Crypto Market Black Swans from Google to Obsolescence - 1st Aug 21
Gold Stocks Autumn Rally - 1st Aug 21
Earn Upto 6% Interest Rate on USD Cash Deposits with Binance Crypto Exchange USDC amd BUSD - 1st Aug 21
Vuze XR VR 3D Camera Takes Near 2 Minutes to Turn On, Buggy Firmware - 1st Aug 21
Sun EXPLODES! Goes SuperNova! Will Any planets Survive? Jupiter? Pluto? - 1st Aug 21
USDT is 9-11 for Central Banks the Bitcoin Black Swan - Tether Un-Stable Coin Ponzi Schemes! - 30th Jul 21
Behavior of Inflation and US Treasury Bond Yields Seems… Contradictory - 30th Jul 21
Gold and Silver Precious Metals Technical Analysis - 30th Jul 21
The Inadvertent Debt/Inflation Trap – Is It Time for the Stock Market To Face The Music? - 30th Jul 21
Fed Stocks Nothingburger, Dollar Lower, Focus on GDP, PCE - 30th Jul 21
Reverse REPO Market Brewing Financial Crisis Black Swan Danger - 29th Jul 21
Next Time You See "4 Times as Many Stock Market Bulls as There Are Bears," Remember This - 29th Jul 21
USDX: More Sideways Trading Ahead? - 29th Jul 21
WEALTH INEQUALITY WASN'T BY HAPPENSTANCE! - 29th Jul 21
Waiting On Silver - 29th Jul 21
Showdown: Paper vs. Physical Markets - 29th Jul 21
New set of Priorities needed for Unstoppable Global Warming - 29th Jul 21
The US Dollar is the Driver of the Gold & Silver Sectors - 28th Jul 21
Fed: Murderer of Markets and the Middle Class - 28th Jul 21
Gold And Silver – Which Will Have An Explosive Price Rally And Which Will Have A Sustained One? - 28th Jul 21
I Guess The Stock Market Does Not Fear Covid - So Should You? - 28th Jul 21
Eight Do’s and Don’ts For Options Traders - 28th Jul 21
Chasing Value in Unloved by Markets Small Cap Biotech Stocks for the Long-run - 27th Jul 21
Inflation Pressures Persist Despite Biden Propaganda - 27th Jul 21
Gold Investors Wavering - 27th Jul 21
Bogdance - How Binance Scams Futures Traders With Fake Bitcoin Prices to Run Limits and Margin Calls - 27th Jul 21
SPX Going for the Major Stock Market Top? - 27th Jul 21
What Is HND and How It Will Help Your Career Growth? - 27th Jul 21
5 Mobile Apps Day Traders Should Know About - 27th Jul 21
Global Stock Market Investing: Here's the Message of Consumer "Overconfidence" - 25th Jul 21
Gold’s Behavior in Various Parallel Inflation Universes - 25th Jul 21
Indian Delta Variant INFECTED! How infectious, Deadly, Do Vaccines Work? Avoid the PCR Test? - 25th Jul 21
Bitcoin Stock to Flow Model to Infinity and Beyond Price Forecasts - 25th Jul 21
Bitcoin Black Swan - GOOGLE! - 24th Jul 21
Stock Market Stalling Signs? Taking a Look Under the Hood of US Equities - 24th Jul 21
Biden’s Dangerous Inflation Denials - 24th Jul 21
How does CFD trading work - 24th Jul 21
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

LLoyds TSB a Crippled, Customer Hated Bank Declares £6.3 Billion Loss

Companies / UK Banking Feb 26, 2010 - 08:38 AM GMT

By: Nadeem_Walayat

Companies

Best Financial Markets Analysis ArticleThe 41% tax payer owned Lloyds TSB bank continues to declare abysmal losses of £6.3 billion for 2009 against £6.7 billion for 2008 as a direct consequence of the HBOS cancer that continues to eat into the banks balance sheet. The balance sheet suffered a £24 billion bad loans impairment, against profits generated by the branches of £1.3 billion and against £20 billion of tax payer capital injected into the bank and a further £150 billion of tax payer loans and guarantees.


Unfortunately the current dire position of the bank is even amidst an atmosphere of near unlimited support for the banks and huge continuing capital injections, which does not bode well for the bank once the government and the Bank of England starts to withdraw this support, i.e. where is Lloyds TSB going to generate its profits from in the future? As £1.3 billion from the retail arm is a mere pittance when compared against the continuing bad debt losses as a consequence of the HBOS exploding mortgage book that will continue to generate more bad debt write offs for many more years.

Lloyds TSB is literally a crippled bank for which I do not even see casino capitalism coming to its rescue as we are observing with the likes of HSBC, Santandar, Barclays bank and even the 81% tax payer owned RBS who's investment banking arm can at least benefit from investment banking profits. A long slippery path lies ahead of Lloyds TSB towards profitability, the first step along which would be to extricate itself from the 41% government share holding, all of which means the battered and bruised Lloyds share holders should not hope for a turnaround to happen within the next few years, especially if the housing market turns down again as I expect it to do following the next general election, therefore shareholders will yet again be subject to calls for more capital that dilutes existing holdings.

LLoyds TSB along with RBS are abysmally failing to live up to their side of the bargain with the tax payer as they both contract lending to businesses and consumers as their loan books continue to shrink, the consequences of which is reflected in the slow pace of economic recovery. The bailed out bank has also been awarded in the inalienable title of being Britain's most hated bank as a consequence of a quarter of all complaints to the Financial Ombudsman being due to lack of competent service by Lloyds TSB / HBOS, after the banking group abandoned customer service standards in favour of jobs and cost cuts. All of which will have an impact the next general election as voters ask both major parties why did you let the bankster's get away with robbing the tax payers?

For more on the inflationary consequences of the bankster crash and £1.3 trillion robbery on Britain's Treasury then read the new Inflation Mega-Trend Ebook, that you can download for FREE.

The Inflation Mega-Trend Ebook is broken down into 4 chapters. Chapters 1, 2, and 3 deal with fundamental economic analysis that builds towards the Inflation-Mega-trend conclusions. Whilst the fundamental analysis is primarily focused on the UK Economy, however the conclusions are just as valid for all of the debt ridden western countries and even apply towards the major emerging economies.

Chapter 4 takes the Inflation Mega-Trend conclusions and applies them to the financial and commodity markets where further analysis develops into precise forecasts and investment trends for major markets. I had originally planned for this to be the shortest chapter of the book, however it has grown to encompass half the ebook and thus could have become an ebook in its own right.

DOWNLOAD NOW -FREE - (Only requirement a valid email address).

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-10 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 500 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Nikki Turner
01 Mar 10, 05:26
Can Lloyds ever recover from HBOS merger?

As the truth about HBOS is dragged kicking and screaming into the media (and goodness knows it has remained buried for a very long time), it brings with it some very uncomfortable questions.

1. Why did the Prime Minister allow the destruction of a perfectly good bank by making it merge with a totally rotten one?

2. Why did Eric Daniels agree to the merger?

The answer to the 2nd question has to be more than just a bad dose of megalomania and the desire to Empire build. And the answer to the 1st question should surely be the subject of a Public Enquiry.

Reading the excellent article in Rolling Stone by Matt Taibbi http://www.rollingstone.com/politics/story/32255149/wall_streets_bailout_hustle/print I can't help thinking that many, if not all of the banking scams he lists, can be found hidden in the HBOS ledgers. In particular, it's possible that some very dodgy derivative deals could have been very detrimental to the Labour Government if the bank had gone down.

So maybe saving HBOS was all about saving the Government and both Lloyds Bank and the thousands of people who have lost out on the deal (I should say millions because the British public will be paying for bank bailouts for years to come one way or another) were simply collateral damage.

There's more bad news to come - the FSA are finally doing an investigation into the bizarre and scandalous HBOS Reading fraud. To date, this has been blamed on one rogue bank manager who was, according to the bank, over supportive to his customers. But that ridiculous story has been well and truly exposed as a total misrepresentation of the truth and journalist Ian Fraser has reported the true story repeatedly and with no action taken from the bank to deny it http://www.ianfraser.org/?p=910

What's so bad about this fraud, which is now estimated to have cost HBOS the better part of £1BN and from one office, is that both the Prime Minister and Lloyds senior executives, were fully cognisant of it, when they did the merger. And, rather than deal with it, they have simply buried their heads in the sand and pretended it didn't happen. The FSA however, can't afford that luxury. They have clear evidence of fraud and they will have to expose it - which will be another damning blow for Lloyds popularity.

HBOS Reading is, of course, just one of the HBOS scams. There are others and I wonder if Lloyds can recover when they all come out?


Post Comment

Only logged in users are allowed to post comments. Register/ Log in