| It's nearly a week since the Bank of England dropped | | | | is now the largest mortgage lender in the UK with a |
| their base rate from 5% to 4.5% and we are still | | | | 20% share of market. |
| waiting for more competitive interest rates from the | | | | With all this drama being played out with the Royal |
| banks for mortgages, remortgages personal and | | | | Bank of Scotland, Lloyds TSB and HBOS and the |
| business loans. It seems that the top four banks | | | | intervention of the Government and the Taxpayer's |
| namely, RBS, Lloyds TSB, HBOS and Barclay's Bank | | | | to bail-out the banks; I wonder how long it will be |
| were quick to pass on the drop in interest rates to | | | | before the rest of the banks come in search of |
| their tracker rate mortgages, discounted mortgages | | | | part-nationalisation of their businesses. We are reliably |
| and Standard Variable Rate mortgages (SVR). Today | | | | informed by Alistair Darling and the Prime Minister that |
| we hear that we the Taxpayers are now | | | | we are not privatising the banks, but are investing in |
| part-owners in the RBS and the Lloyds TSB and | | | | them. (Hello, what's the difference - we still own |
| HBOS. | | | | shares in them and they are chunky shares at that!) |
| This morning the drama was played out further when | | | | A key part of the Government and Taxpayer's |
| the Royal Bank of Scotland went cap in hand to the | | | | Rescue Plan requires the banks that accept our |
| Government for a £20 billion rescue bail-out; | | | | bail-out help to provide us with competitive |
| this came with a further surprise when the Royal | | | | mortgages at last years levels (2007) - Oh boy, do |
| Bank of Scotland (RBS) announced the departure of | | | | we the homeowners, first-time-buyers, mortgage |
| two of their chief executives namely, Fred Goodwin | | | | consultants and taxpayers like that! But with falling |
| and Tom Killop. | | | | house prices, I'm not so sure that the mortgage |
| In a similar drama HBOS announced that Andy | | | | industry will think this is a good idea. Not everybody |
| Hornby and the Chairman Lord Stevenson were to | | | | will benefit from last years interest rates. If their |
| stand down. Lloyds TSB and HBOS then asked the | | | | homes value has dropped and they are now in |
| Government to provide them with a £17 billion | | | | negative equity they may not be able to remortgage |
| rescue bail-out. I would love to have been a fly in | | | | to a new lender for a better interest rate. In some |
| both the RBS and the Lloyds TSB/HBOS boardrooms | | | | case may have to endure the standard variable rate |
| when they both seemed to have unceremoniously | | | | - the worst interest rate a lender has! |
| removed their captains and co-pilots, granted with | | | | Will the British Government, the American |
| decent payout as that is what you do in banking! | | | | government and other governments from around the |
| Was this an acceptance that they the banks have | | | | world that have pumped billions of pounds into their |
| provided bad management or was it a more sinister | | | | respective economies have actually solved this crisis |
| reason? | | | | of a lack of confidence in our global banking system? |
| Well, we the taxpayers and the British Government | | | | This is the multi-billion pound question and nobody |
| have now acquired a 60% share of the Royal Bank | | | | really knows for sure whether this will work. It should |
| of Scotland and a 43.5% share of Lloyds TSB and | | | | work in order to keep the banks functioning, improve |
| HBOS. (So, these banks had better be nice to us!) | | | | their confidence, maintain our standards of living and |
| Meanwhile, Barclay's Bank has said that they are | | | | help stabilise the global economies. It is unlikely that |
| currently raising £10 billion from their own | | | | we will avoid a recession now, to much has happened |
| sources, so there will be no private ownership here. | | | | and the finance system needs a time of |
| (That's a pity; I really fancied owning part of Barclay's | | | | readjustment and for correction. |
| Bank and their credit cards debts) | | | | And just because we the taxpayers helped bail-out |
| Meanwhile, Lloyds TSB has renegotiated the terms of | | | | the banks, does not mean that they will be anymore |
| its takeover of HBOS. It is Lloyds TSB intention to | | | | sympathetic towards us when we tell them our hard |
| reduce the amount of their share offer by a further | | | | luck story. You thoughts and comments are always |
| 25% for each HBOS share in view of the current | | | | welcome. Just Click on the green coloured comment |
| market situation. HBOS was originally formed by the | | | | bar below and leave your thoughts and views. |
| merger of the Halifax and the Bank of Scotland and | | | | |