Lloyds Bank finds massive loan risk on HBOS balance sheet
Lloyds Bank has this weekend revealed over £80 billion of high-risk loans on the HBOS balance sheet which it was not fully aware of. This comes at a time when Lloyds bank was forced to take a £10 billion hit for HBOS loan write-offs and a significant increase on its own more conservative balance sheet write-offs. So what next?
Overall Lloyds Bank has now located around £165 billion of loans which are outside the company's natural appetite for risk. The group has been in talks with the UK Treasury about making use of the toxic asset insurance facility but there appears to be some confusion as to what exactly is going on. Despite the fact that Royal Bank of Scotland has managed to secure insurance for over £350 billion of toxic assets there appears to be a delay in rubberstamping the deal for Lloyds Bank.
There is no way that Lloyds Bank can take such a massive hit without having to raise capital at some point in the near future with the UK government poised to increase its stake, even though the board of directors at Lloyds Bank would rather take a different route. The days of the conservative Lloyds Bank Group have long gone after the acquisition of HBOS.
Share this..
Related stories
73% of houses sold below asking price
26/02/2015 Nearly three quarters of houses on sale in January this year were sold for less than their asking price, according to figures from the National Association of Estate Agents January Housing Market Report. 73% of homes were sold for less than their asking price last month, which is 17% more than January 2013, when 56% of homes were sold for less. This means homebuyers are now in a...
Read MoreWhy is the UK pension sector in such a mess?
The revelation that total liabilities for UK pension schemes of the defined benefit variety have now topped £1 trillion and seen the actual deficit increase to nearly £200 billion is causing serious concern within government corridors. Many people are now wondering how the UK pension system is in such a mess and how over the last 10 years, no real assistance has been offered.
Inde...
Will the UK banking sector ever recover?
The ongoing demise of the UK banking sector, with Royal Bank of Scotland, Lloyds bank, Northern Rock and Bradford & Bingley all in some way heavily dependent on the UK government, has cast a very dark cloud over the UK economy. As we mentioned in some of our other articles there is concern within the investment industry and indeed the Standard & Poor's credit rating agency is very downbeat on the...
Read MoreEquity gains in house prices are cashed in by homeowners
Lucky homeowners, who have gained from the increase of property prices over the past 12 months, are aiming to cash in over £9,000 of equity gains by remortgaging their property. According to the Mortgage Search Tracker from Mortgage Advice Bureau the typical homeowner looking to remortgage their property in the first quarter of 2015 had a home worth £248,191. This in an increase of 7.9%, a r...
Read MoreCebr forecasts buoyant property market
The Centre for Economics and Business Research (Cebr) has today issued a statement suggesting that the average property price will increase by around £9,000 in 2010. This would be a 5% increase on last year and see the average home in UK costing around £178,500. The Cebr is also forecasting 3.4% growth in property prices in 2011 and 9% growth in 2012. This is a very interesting and a very pos...
Read More