Jeremy Warner's Outlook: More wild rumours among the banks
Thursday, 10 July 2008
It was another round of wild rumours in the banking sector yesterday, even though share prices were in the round in healthier mood. Both Andy Hornby, chief executive of HBOS, and John Varley, chief executive of Barclays, were said to be collecting their P45s.
Both rumours were vigorously denied, as indeed they would have to be given that HBOS and Barclays are in the middle of highly challenging capital raising exercises. It wouldn't do to lose a chief executive half way through.
It is testament to how fragile conditions have become that such speculation is readily believed. Things are now so wild that anything seems possible. For the time being, both Mr Hornby and Mr Varley live to fight another day. All the same, it seems unlikely that Steve Crawshaw, the luckless former chief executive of Bradford & Bingley, will be the last casualty of this bizarrely unorthodox banking crisis.
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The last casualty of this bizarrely unorthodox banking crisis.
Whats bizarrely unorthodox about it? They are stuffed to the gills with Collateral [the likes of B@B never understood what they had on board their balance sheet] which is facing a further 30% markdown at a time when the cost of carry is spiking. Its a double whammy and no sweet rhetoric can alleviate it.
Aly-Khan Satchu
www.rich.co.ke
Posted by Aly-Khan Satchu | 10.07.08, 11:12 GMT
Banks and "Oil Companies" have all the money; Banks have encouraged over spending by consumer and "oil Companies"
(with the blessing of Gov.) have backed consumer into a corner.
This can only lead to disaster for everyone. Consumers are walking away (bankrupt) from over priced, over mortgaged, inferior quality homes. The (inevitable) hard lesson is being learned by all concerned.
Posted by trevor | 10.07.08, 11:10 GMT