HBOS a good investment?

[the mole]

Im thinking of buying about 10k worth of these shares, whats the worst that can happen?

[TightEnd]

This might be a daft question, but I have a lot of £ in HBOS accounts and what would happen to it if HBOS went down?

Protected by the Bank of England's depositors scheme, up to a point

"UK banks are required to be members of, and to contribute to, a deposit protection scheme. This entitles depositors with a failed institution to receive 90% of their protected deposits, subject to a maximum payment to any depositor of £18,000 ."


As per NRK though, highly unlikely the bank of england would get it that far (Lehmans in the US isn't a retail bank)

[the mole]

This might be a daft question, but I have a lot of £ in HBOS accounts and what would happen to it if HBOS went down?

Protected by the Bank of England's depositors scheme, up to a point

"UK banks are required to be members of, and to contribute to, a deposit protection scheme. This entitles depositors with a failed institution to receive 90% of their protected deposits, subject to a maximum payment to any depositor of £18,000 ."

Would it be better to plough some of your savings into the shares then?



As per NRK though, highly unlikely the bank of england would get it that far (Lehmans in the US isn't a retail bank)

[Jon MW]

This might be a daft question, but I have a lot of £ in HBOS accounts and what would happen to it if HBOS went down?

Shorter Answer:  It won't

[WYSINWYG]

Im thinking of buying about 10k worth of these shares, whats the worst that can happen?

They go bust after losing too much money, the government takes them over, you get next to nothing.
Very unlikely though.
In my opinion , the shares will rebound after a merger or when the gloom wears off.

[AndrewT]

Shares are bouncing now - HBOS up 8% today.

However, Lloyds TSB are up 10%, which shows that people think they're going to get a bit of a bargain.

[sovietsong]

This might be a daft question, but I have a lot of £ in HBOS accounts and what would happen to it if HBOS went down?

Move to a proper bank HSBC FTW

[WellChief]

If this merger goes through would it happen in the next few days?  Im thinkin of moving some money out to different institutions but think it might be too late.

[AndrewT]

If this merger goes through would it happen in the next few days?  Im thinkin of moving some money out to different institutions but think it might be too late.

Unless you've got ££££££ in there your money will be ok (and even then it's a tiny risk)

You only have to worry if you work for HBOS, because there's a good chance you won't be needed any more.

[WellChief]

I have more than the amount thats guarenteed by the FSA which is what's worrying, I've opened a savings acc with a different bank so will shift some there ASAP.

[AndrewT]

I have more than the amount thats guarenteed by the FSA which is what's worrying, I've opened a savings acc with a different bank so will shift some there ASAP.

[X] Blatant 'I ain't poor' post IMO

[WellChief]

Lol well its natural to be worried when you wake up and their share price is 80 odd pence.

[the mole]

What is the amount that's guaranteed?

[lazaroonie]

I have more than the amount thats guarenteed by the FSA which is what's worrying, I've opened a savings acc with a different bank so will shift some there ASAP.

and by moving your money out like thousands of others, the prophecy that they are doomed becomes self fulfilling, as the liquidity goes up in smoke.

[WellChief]

£35K mole. 

I totally agree with you Laz, and if nobody panicked in situations like this there would be no problem, but would you take the risk?