Lloyds faces a £200 million hit after property company collapse
Lloyds bank today stands on the verge of a potential £200 million hit after the collapse of Thornfield Ventures. This is an operation which was backed by Lloyds bank's HBOS division to the tune of around £500 million. The main parent company and three subsidiaries are now in administration with a potentially enormous loss on the cards for Lloyds bank.
Even though there has been some recovery in the UK economy and the UK property sector, we will see a number of smaller property companies struggling to survive in the weeks and months ahead. Cash flow is king at the moment and with a slow stream of sales in the sector it looks as though many other companies will also be feeling the pinch. The main banking groups in the UK have always had a large exposure to the UK property sector and while Lloyds has hit the headlines today it could be any one of the major UK institutions tomorrow.
This is all the more frustrating for the likes of Lloyds bank which is trying to draw a line under past problems and rebase itself for the future. However, it looks as though this may not be the only property company collapse which will hit the headlines in the short term.
Share this..
Related stories
London jobs market "strong", says Halifax
The London jobs market went from strength to strength in July, with an increase in the number of job placements and strong demand for staff, according to the latest London Labour Market Report from Halifax Financial Services. The report's unique employment barometer registered a level of 64 in July, up from 61.3 in June, which is the highest level since November 2000.These figures point to an upt...
Read MoreNationwide building society halts mortgage tracker rate cuts
In contradiction to hopes from the UK government it has been revealed that the Nationwide building society will not be passing on further rate cut savings to the company's mortgage tracker customers. This is a serious blow to both the UK property sector and the government who had pinned their hopes on further assistance from the banking sector. The problem the government now has is that further re...
Read MoreBritish Energy agrees to do it the French way
News that EDF has agreed a £12.4 billion deal with the board of British Energy has received a mixed reaction in the City today after the deal was first rejected some weeks ago. The deal is worth 774p a share and while it is expected to be approved by shareholders nothing is certain about this long running saga.
The move will offer some relief in government circles as it brings i...
Financial Watchdog Hits The Short Sellers
While there are many people who dislike those market dealers who sell shares they do not own with the intension of buying them back when they fall, they have always been part of the market. Even though many see them as a form of market abuse they are actually a natural part of find a level for any share price. However, the FSA has stepped into the row and announced plans to force ‘shorter...
Read MoreIntroductory rates on savings accounts to be investigated
09/09/2013 So-called ‘teaser’ rates on cash savings accounts are to be investigated by the Financial Conduct Authority (FCA). The headline rates are put on savings accounts to attract consumers, but usually only last for a specific period of time, usually a year. After this initial period the rates fall, sometimes significantly, leaving savers earning a poultry amount of interest on thei...
Read More