The shotgun wedding at the behest of the FSA for the rescue of Halifax Bank of Scotland (HBOS) by Lloyds TSB less than 2 weeks ago for £12 billion at a price of £2.32 per share is coming under pressure as speculation grows that Lloyds shareholders are not happy with the price being paid for a near bankrupt mortgage bank. The current HBOS market price of £1.34 is near half of the original Lloyds TSB bid price. .

The news has not gone down well with HBOS customers who appear to have been inundating the HBOS online service which has been showing signs of cracking under the strain, an unknown number of customers which includes yours truly are being met by the following page when attempting to log-in:

HBOS Log in Problems

Clearly Customers are fearful of the uncertainty of what could transpire should HBOS follow the same path of Bradford and Bingley, which was nationalised on Sunday and broken up on Monday, are further confused as to how secure their savings are as the government has belatedly sought to extend the 100% savings guarantee from £35k to the first £50k, more on this in a later article.

For more on the state of the UK banking system and the credit crisis subscribe to our free newsletter.

By Nadeem Walayat
http://www.marketoracle.co.uk

Nadeem Walayat has over 20 years experience of trading, analysing and forecasting the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 150 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

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

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2022 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.