Extent of real HBOS debt beginning to emerge – For Argyll covered this months ago

The UK financial world reeled under shock waves yesterday (13th February)  as accountants pronounced that the situation demonstrated by the HBOS  books was considerably more serious than they had previously thought. HBOS revised its loss forecast for the year upwards from around £8billion to almost £11billion. Lloyds TSB shares took a 32.5% dive after the news.

For Argyll has twice warned about HBOS’s significant exposure to Alternative A mortgages (Alt As) in the USA – mortgages which have proved more toxic than the better known Sub-Prime variety.

It is unlikely that today’s announcement is the end of this story. The eventual outcome is increasignly likely to mean the new Lloyds Banking Group joining Northern Rock as a whoilly nationalised bank. Chancellor Alistair Darling has refused to rule out this option.