Anarchy in the UK: First RBS, now HBOS Panhandling?
The Bank of England said last week it would lend about $100 to $200 billion in government bonds
and accept mortgage-backed securities as collateral to help unlock wholesale-funding markets.
On the heels of Royal Bank of Scotland saying it would seek another $24 billion from shareholders last Tuesday...
HBOS, the U.K.'s biggest mortgage lender, may ask shareholders for as much as $8 billion at its annual meeting Tuesday...
to balance write-downs and strengthen its balance sheet as the economy slows.
The Sunday Times newspaper reported that the HBOS board is considering raising between $4 to 8 billion,
while the Sunday Telegraph put the prospective size of the rights issue at up to $8 billion.
HBOS is also likely to take further write-downs of about $6 billion on its exposure to U.S. mortgages.
Analysts at Lehman Brothers said in a note to clients Monday that HBOS
would need to raise some $6.5 billion before any write-downs in order to increase its Tier 1 capital ratio.
Analysts at Goldman Sachs said in the "negative scenario": Barclays, the third-biggest U.K. lender,
would have to seek $9.9 billion should it have to write down a further $10 billion...
and HBOS would have to raise $8 billion if it marked down $11 billion on credit related assets.
and accept mortgage-backed securities as collateral to help unlock wholesale-funding markets.
On the heels of Royal Bank of Scotland saying it would seek another $24 billion from shareholders last Tuesday...
HBOS, the U.K.'s biggest mortgage lender, may ask shareholders for as much as $8 billion at its annual meeting Tuesday...
to balance write-downs and strengthen its balance sheet as the economy slows.
The Sunday Times newspaper reported that the HBOS board is considering raising between $4 to 8 billion,
while the Sunday Telegraph put the prospective size of the rights issue at up to $8 billion.
HBOS is also likely to take further write-downs of about $6 billion on its exposure to U.S. mortgages.
Analysts at Lehman Brothers said in a note to clients Monday that HBOS
would need to raise some $6.5 billion before any write-downs in order to increase its Tier 1 capital ratio.
Analysts at Goldman Sachs said in the "negative scenario": Barclays, the third-biggest U.K. lender,
would have to seek $9.9 billion should it have to write down a further $10 billion...
and HBOS would have to raise $8 billion if it marked down $11 billion on credit related assets.
Comments