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Anorak | Now we know the truth about HBOS: it was nothing to do with casino banking

Now we know the truth about HBOS: it was nothing to do with casino banking

by | 5th, April 2013

hbos fail

WE’VE had the report out today about how and why Halifax Bank Of Scotland fell over. You can read it in all its glory here . And the important takeaway point to be made about it is that it was nothing at all to do with speculation, investment banking, weird derivatives, high speed trading or any of the other things that people fulminate against. It was, very simply, a bank going bust in the way that banks have always gone bust. Lending too much money to people who didn’t pay it all back.

And I’m afraid that that really is it. Entirely naff all to do with casino banking.

And that means that all of the things that people want to do to rein in casino banking aren’t going to stop such a thing from happening again. You know the sort of stuff I mean. This Robin Hood Tax for example: HBOS wouldn’t have been paying much of this because they simply didn’t have an investment bank of any size. They just weren’t taking part in the public markets: it wasn’t

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Posted: 5th, April 2013 | In: Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink