HBOS

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 ...

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 ...

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 ...

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 ...