Quote:
Originally Posted by crockett
The problem is all these companies are "too big to fail".. The banks, Freddie and Fannie.. GM, Ford.. ect..ect..
This is why we need govt regulation to break these big companies up, so if they get in trouble they don't bring down the entire economy along with them.
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yep
Im wondering if a lot of the big failing banks/companies will in the end be nationalised
http://latestnews.virginmedia.com/ne...ationalisation
Halifax Bank of Scotland could have to be nationalised if shareholders reject a takeover by Lloyds TSB, the bank's chairman said.
HBOS chairman Dennis Stevenson said the bank could need to raise at least £12 billion in capital if investors threw out the deal and a potential £11.5 billion injection of taxpayers' cash.
If HBOS decided to go it alone, there was "no certainty" over sources of funding, he added.
The bank could be forced to raise dearer funds from the Treasury, potentially resulting in "the loss of independent or private sector status for HBOS", Mr Stevenson said.
Mr Stevenson was writing in a circular to shareholders ahead of a meeting in Birmingham to approve the deal on December 12.
If the deal gets the go-ahead, it will create a banking giant with around 145,000 staff and 3,000 branches across the UK.
Last week the bank rebutted calls from the former heads of Bank of Scotland and Royal Bank of Scotland, Sir Peter Burt and Sir George Mathewson, to abandon the deal - which they claimed was no longer necessary - and install them as chief executive and chairman.
Competition rules have been waived to allow the takeover - which values HBOS at around £5.4 billion at current share prices - to go ahead.
Separately, the chairman and deputy chairman of nationalised mortgage bank Bradford & Bingley have stepped down, the lender said. Chairman Rod Kent, his deputy Nick Cosh and non-executive directors Ian Cheshire and Steve Webster left the company with immediate effect, B&B said.
Chief executive Richard Pym will take the dual role of executive chairman, the bank said in statement.