Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Lloyds Banking Group    LLOY   GB0008706128

LLOYDS BANKING GROUP (LLOY)
Mes dernières consult.
Most popular
  Report  
Real-time Quote. Real-time Cboe Europe - 07/18 05:30:00 pm
62.66 GBp   +0.34%
04:16pLloyds Remains Top U.K. Mortgage Lender as Challenger Banks Grow ..
DJ
11:38aLLOYDS BANKING : Risk of legal battle
AQ
07/17EXCLUSIVE - LLO : sources
RE
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Lloyds Banking : paid 'appropriate' price for HBOS, former finance chief tells court

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/25/2017 | 03:52pm CEST
File photograph shows a pedestrian passing the head office of the Lloyds Banking Group in London

LONDON (Reuters) - The former finance director of Lloyds Banking Group denied on Wednesday that the bank had been compelled to rescue British rival HBOS during the financial crisis nine years ago and said the price it paid for HBOS was "appropriate".

Tim Tookey, cross-examined in London's High Court by a lawyer representing 6,000 shareholders claiming around 550 million pounds in damages over the deal, said he knew HBOS had had funding difficulties and that its shares were gyrating.

But he denied that Lloyds could have avoided paying a premium, or even the market price, for the struggling bank after the collapse of Wall Street giant Lehman Brothers in September 2008 left markets in turmoil.

"We, as the board, felt it was an appropriate price to pay," he said.

A shareholder group alleges that Tookey, four other former Lloyds directors and the bank concealed crucial information about HBOS's "parlous" financial state and breached their duties by recommending the reverse takeover in 2008.

Lloyds, Britain's largest retail bank, and the individual defendants, who include former chief executive Eric Daniels, ex chairman Victor Blank, Helen Weir, the former head of retail and Truett Tate, one-time former head of wholesale banking, deny any wrongdoing.

The former directors, who left Lloyds between 2009 and 2012, have been described by the bank as highly distinguished and experienced.

Investors allege Lloyds' failure to divulge a 10 billion- pound HBOS loan and billions more in British and U.S. central bank emergency support meant investors did not know HBOS "had failed" and "was worthless".

They allege the HBOS takeover, that valued the bank at around 5.9 billion pounds, wiped billions off the enlarged bank's market value. Lloyds itself then had to be rescued with a 20.5 billion-pound government bailout in 2009.

The bank has called the HBOS deal a "unique opportunity" to boost market share and realise cost-savings while the government, desperate to shore up plunging shares and investor and depositor confidence after the Lehman collapse, swept aside competition hurdles in return for an urgent deal.

Tookey said he had not been aware that HBOS faced nationalisation if Lloyds had walked away from a deal.

"I did not hear the nationalisation word," Tookey said, adding that Daniels, the former chief executive, had led the discussions on the price to pay for HBOS.

Much of the shareholder case hinged on "myth" and "hindsight" about the depth of the financial and unfolding economic crisis, which could not have been foretold, a lawyer for the bank has told the court.

The trial, which began a week ago, continues.

(Editing by Greg Mahlich)

By Kirstin Ridley

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on LLOYDS BANKING GROUP
04:16pLloyds Remains Top U.K. Mortgage Lender as Challenger Banks Grow Rapidly
DJ
11:38aLLOYDS BANKING : Risk of legal battle
AQ
07/17EXCLUSIVE - LLOYDS BANK PLANS THREE : sources
RE
07/17LLOYDS BANKING : Business confidence in Scotland ‘increased in first six m..
AQ
07/16LLOYDS BANKING : Half of scots no longer believe they will buy their own home
AQ
07/16LLOYDS BANKING : Bank-Confidence edges to two-year high since Brexit vote but fa..
AQ
07/16LLOYDS BANKING : Confidence edges to two-year high since Brexit vote but fails t..
PU
07/13LLOYDS BANKING : Cash for tourists inspires campaign
AQ
07/13LLOYDS BANKING : Bank of Scotland-Half of scots no longer believe they will buy ..
AQ
07/13SILVER SITTERS : grandparents clock up the hours to help plug summer holiday chi..
PU
More news
News from SeekingAlpha
06/29Top 2 Banking Stocks Post FED Stress Test 
06/22Non-U.S. multinational banks perk up as eurozone economy revives 
06/212 Banking Stocks To Buy Today 
06/14European banks slip as ECB plans end to bond-buying, maintains interest rates 
06/08Deutsche Bank, other overseas banks fall as world leaders gather for G-7 
Financials (GBP)
Sales 2018 18 558 M
EBIT 2018 8 763 M
Net income 2018 4 313 M
Debt 2018 -
Yield 2018 5,52%
P/E ratio 2018 10,35
P/E ratio 2019 8,97
Capi. / Sales 2018 2,43x
Capi. / Sales 2019 2,42x
Capitalization 45 150 M
Chart LLOYDS BANKING GROUP
Duration : Period :
Lloyds Banking Group Technical Analysis Chart | LLOY | GB0008706128 | 4-Traders
Technical analysis trends LLOYDS BANKING GROUP
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 22
Average target price 0,77  GBP
Spread / Average Target 23%
EPS Revisions
Managers
NameTitle
António Mota De Sousa Horta-Osório Group Chief Executive Officer & Executive Director
Norman Roy Blackwell Chairman
Juan Calafat Colombás Chief Operating Officer & Executive Director
Mark George Culmer Chief Financial Officer & Executive Director
Anita Margaret Frew Senior Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
LLOYDS BANKING GROUP-8.24%59 129
JP MORGAN CHASE & COMPANY3.33%376 228
BANK OF AMERICA0.88%304 282
WELLS FARGO-6.77%275 610
INDUSTRIAL AND COMMERCIAL BANK OF CHINA-15.65%270 604
CHINA CONSTRUCTION BANK CORPORATION-17.06%231 459