HBOS PLC (68FF)

HBOS PLC (68FF)

Blog posts

Further on the FRC and its Report on the HBOS Audit

Roger’s blog makes a number of hard hitting points about the FRC. However, there are some promising actions which indicate change is happening at the FRC. The meeting with the FRC and ShareSoc and UKSA members on 21 November was most helpful in establishing a good working relationship with the FRC. There are promising signs that the FRC want to work closely with us and we have been asked to put representatives onto a number of their committees and working groups. More ...

Brexit, HBOS, Globo and the FRC

Is it not heartening that the Brexit divorce bill, and other terms, have been settled? The exact cost is unclear but it could be up to £40 billion – a lot of money you may say! However, the fact that the key negotiators, Mrs May, Barnier et al, all looked somewhat glum about the deal when announced perhaps tells us that it was a compromise in which both sides had to concede ground. Or perhaps they were just tired. The terms ...

Lloyds Litigation, Collective Redress, and CLIG AGM

I went to the High Court in London this morning to hear the grilling of witnesses in the case brought by shareholders over the acquisition of HBOS by Lloyds. But I was disappointed to find when I got there that the first session was to be held in private – presumably the judge wants to discuss some legal issues with counsel for both sides. So I went to the AGM of City of London Investment Group (CLIG) instead where I hold ...

HBOS and Lloyds Legal Case

This week sees the start of the legal case in the High Court by investors in the Lloyds TSB over the acquisition of HBOS – opening submissions are on Wednesday and it’s scheduled to run through to March next year. Anyone can attend these hearings of course but I think it will take a very patient person to sit through all of it. I have submitted written evidence on behalf of the litigants (represented by Harcus Sinclair) but it seems I ...

Banks and Bank Credit Card Accounting

It's going to be exciting week next week for RBS and Lloyds Bank shareholders with both AGMs on Thursday in Scotland - we expect to issue a report on events. Indeed it's going to be an exciting period ahead because the law suits by those investors in the RBS rights issue who have not yet settled, and an action over the takeover of HBOS by LloydsTSB, are both getting into court in the next few months. Having Fred Goodwin on the witness ...

More Bad News for Banks and their Investors

If there are any private investors still invested in major UK listed banks, last week (w/e 30/1/2016) was yet another for disillusionment. In the Financial Times, Lex hit the nail on the head when he said "The one-offs keep on coming. If one did not know better, one might suspect them of being two-, three-, or more-offs". He was referring to Royal Bank of Scotland (RBS), but other banks likewise posted bad news during the week. Let's take them in turn: RBS ...

The Audit of HBOS

One of the mysteries not adequately researched in the recently report into the demise of HBOS was the failure to examine the audits of the company that took place. The Financial Reporting Council (FRC) decided two years ago not to look into the audits of the bank by KPMG prior to its collapse and acquisition by Lloyds in 2008. But the Parliamentary Treasury Select Committee has now been looking into this further. Andrew Tyrie, the Committee Chairman, has already suggested the FRC ...

The HBOS Report – It’s Finally Here

The Prudential Regulatory Authority and the Bank of England today published the report of the inquiry into the failure of HBOS Plc. Those who were investors in the company at the time, or who suffered as a consequence of the bail-out of the company via a merger with LloydsTSB, will not need to be told what happened and why. This report does not add a lot to the story as the defects in the management of the HBOS are now well ...

Goodwin still on the hook for RBS debacle

The Herald newspaper have reported an astonishing attempt by the lawyers for Royal Bank of Scotland (RBS) to have Fred Goodwin excluded from the legal case over the rights issue in 2008. They wanted four former directors removed from the case so as to streamline proceedings. However the judge presiding over the case threw this attempt out. The directors signed off the prospectus and hence should surely be accountable for what the plaintiffs claim was a misleading document. But the lawyer for ...

Law suits – Quindell, Lloyds, RBS and SIPPs

Feel misled by the Quindell board and its advisors? Then there is a new legal action being formulated by Liverpool legal firm "Your Legal Friend". They already claim to have 250 investors interested in pursuing a claim on the basis that statements issued by the board and its advisors show that insufficient care had been taken in relation to the duty of care owed to investors.  At least that's a brief summary of the allegations - see their web site for ...

Legal Action on Lloyds-TSB and HBOS merger

Attention all former Lloyds-TSB shareholders. As former Lloyds-TSB shareholders are no doubt well aware, the merger of Lloyds-TSB with HBOS in January 2009 to form the Lloyds Banking Group was a disaster for shareholders in Lloyds-TSB. Lloyds-TSB was a financially strong bank who historically had paid a high dividend. HBOS was obviously in financial difficulties at the time and needed bailing out. Indeed information that subsequently became public suggest it was in reality about to go bust because of its large exposure ...
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