HSBC

[LMH]

Has anyone heard any rumours about this bank? Is it safe to put your savings in it?

Lisa

 

[ShadySadie]

Much the same as other high street banks Lisa, HBOS are the ones looking for funding in the news today.

For current account banking HSBC/ Midland(formerly)are the last of the big banks I would go to as I've heard of more complaints about them than any other. Not exactly 'user friendly' when the going gets tough. Also the HSBC Maestro card is not the best tool in the debit card tool box.

 

[Stephen_374341239]

hi LMH

Its only Rumour in the Banking world. But thay are ment to be in trouble with bad lending policy in the USA.

I would stay well away at this time.

 

[ThePlotter]

Lisa as an ex employee of HSBC and a shareholder I keep an eye on them but to the best of my knowledge they have no problems that the other banks donthave.All of which is down to what is called sub prime lending,basically all,yes all the big banks got suckered in by America(what a suprise) to in effect buy a lot of their mortgage lending ,however this coincided with a major downturn in the health of the american housing market (a bit like here) the result was vast numbers being unable to pay their mortgage as a result lots of repossesions that is always the case sell at below the amount owed.Result big loses to the banks.All financial institutions have to have sufficient funds to cover their liabilities,all the banks are well covered but as with the others they always err on the side of caurion and ensure that they are over covered,hence RBS and now HBOS issuing a rights issue to increase their cover which will mean that they are covered not only as rquird but also to cover any future effects of the sub prime lending.

I hope that helps,dont panic because Northern Rock had no problems until panic set in and they lost their cover due to fools causing a run on what was a sound bank,but none would survive that sort of activity.The rights isues would however reduce problems even in the event of a run.

 

[LMH]

Hi Plotts

Thanks for the advice and explanation.

------

Another thing you might be able to clarify is this (I got this from a third party so can't say if it's true or not).

An investor had

 

[Angus1]

as their money was guaranteed up to

 

[LMH]

Hi Angus

Thanks, I thought so.

Anyway, what are you doing on here? I thought you were in hospital being attended to by illiterate staffordshire bull terrier owners? LOL!

Lisa

 

[ThePlotter]

Lisa that is the sort of deal for a business in liquidation,Northern Rock are not as the Government/we bailed them out after idiots made a run on the bank which was not in trouble but they caused it themselves and deserved a loss if the Old Lady of Threadneedle Street had not sorted it.

 

[peter_374235415]

Panic, Panic, Panic. Todays media cause this. Northern Rock may have survived if its customers hadn't panicked. Now we have people panic buying fuel causing problems and shortages. Rumours about HSBC may or could cause the same thing to happen again. Too many investers, fat cats profiting from others worry and misery.

 

[RogerL]

Peter - you're right about media causing the panic that then results in a crisis - remember the joke about siberian salt mine workers going on strike which led to a real shortage as everyone panicked and stocked up.

Don't blame investors - most of this money is pension funds earning money to pay pensions to working class folk.

 

[Guest]

Banks are a save place to put your savings. Whether you get a decent return on your investment is another matter and one you should watch carefully.

Both RBS and HBOS are tapping their shareholders for cash, not because they are in trouble, but because they wish to strengthen their cash balances. One could ask why they got into such a position, but we all know the answer to that one. On the upside shareholders get to purchase more shares at a very attractive discount and given a reasonable degree of growth the profit is very healthy. So, sometimes the end justifies the means.

I am all for principle, but if there is an advantage to myself without hurting anyone, theni will take advantage.

 

[smiley]

Hi We are in the process of having a mortgage from HSBC, had to go into their branch, have to admit theres no to ask a question separate branches and in both it was the same.

We used to be with midlands years ago dropped them after they couldn't transfer from one branch to another when buying our house.

HBOS owns Halifax that must be why their no good. We've had an ISA for three years always one month befroe the end of year they drop the interest rate. Getting out of there, there's better on the market....