Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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Job losses are to be expected with mergers. The whole point of them is so you can make cost savings, and one of the largest (if not the largest) will be cutting down on the amount of staff needed.
I wouldnt be feeling secure in my job if it was me!
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Eck
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Registered: 17th Apr 06
Location: Lundin Links, Fife
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quote:
Originally posted by Cosmo
Job losses are to be expected with mergers. The whole point of them is so you can make cost savings, and one of the largest (if not the largest) will be cutting down on the amount of staff needed.
I wouldnt be feeling secure in my job if it was me!
When Halifax and BoS merged, all that changed was the systems? Why when a company is expanding would they downscale the staff base? Folk on here seem to think that HBOS are struggling for funds, when we have the largest amount of deposits in the UK, are the largest Mortgage lenders, and apart from the shares, the only thing that's happened is two credit rating companies have downgraded us from AA- to A+ and AA+ to AA  That is still on par with Barclays and RBOS.
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Robbo
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Registered: 6th Aug 02
Location: London
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That and the £3bn thats been wiped off your value since Monday 
And you are struggling for funds... you have significant "IOUs" due next Summer that you can't afford to pay atm
As for redundancies etc., its simple economies of scale
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Eck
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Registered: 17th Apr 06
Location: Lundin Links, Fife
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quote:
Originally posted by Robbo
That and the £3bn thats been wiped off your value since Monday
And you are struggling for funds... you have significant "IOUs" due next Summer that you can't afford to pay atm
As for redundancies etc., its simple economies of scale
£3bn has been wiped off, but 4bn was raised incase such a thing were to happen Where is this struggling for funds coming from? I've been watching sky news, and reading the website but can't seem to find it?
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ed
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Registered: 10th Sep 03
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So what happens after all the banks merge into one, and the next recession happens?
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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quote:
Originally posted by Eck
Why when a company is expanding would they downscale the staff base?
As thats the whole reason for mergers, so you can make use of economies of scale and cut down on the costs to both companies. As a very broad example, a merger would allow them to cut down on management costs, minion employee costs, building costs, etc. etc. as they wont need double the management, double the work force and double the amount of building space to cater for all their needs.
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Robbo
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Registered: 6th Aug 02
Location: London
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1.
HBOS, which was created by the merger of the Halifax and Bank of Scotland in 2001, has come under pressure in recent days amid concerns about its exposure to the US sub-prime market.
Questions have been raised about whether it will be able to refinance its debt of more than £100m in coming months.
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Eck
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Registered: 17th Apr 06
Location: Lundin Links, Fife
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quote:
Originally posted by Robbo
1.
HBOS, which was created by the merger of the Halifax and Bank of Scotland in 2001, has come under pressure in recent days amid concerns about its exposure to the US sub-prime market.
Questions have been raised about whether it will be able to refinance its debt of more than £100m in coming months.
Where did you read that Robbo, I've not seen that mate?
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Robbo
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Registered: 6th Aug 02
Location: London
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2.
Industry experts have calculated that HBOS had to buy back £150bn of short term bonds - glorified IOUs - by June next year.
They would then need to re-sell them to raise fresh cash.
Where would HBOS get the cash? Who might buy its bits of paper again? All this uncertainty seems to have contributed to the HBOS share price collapsing.
And if a crisis of confidence grips the financial markets, it is all but impossible to shake off.
As the administrators to the now defunct US investment bank Lehman Brothers pointed out, if you are a bank and no-one will trade with you, you are dead.
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Robbo
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Registered: 6th Aug 02
Location: London
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All of BBC Eckles matey
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Robbo
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Registered: 6th Aug 02
Location: London
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quote:
Originally posted by Eck
quote:
Originally posted by Robbo
That and the £3bn thats been wiped off your value since Monday
And you are struggling for funds... you have significant "IOUs" due next Summer that you can't afford to pay atm
As for redundancies etc., its simple economies of scale
£3bn has been wiped off, but 4bn was raised incase such a thing were to happen Where is this struggling for funds coming from? I've been watching sky news, and reading the website but can't seem to find it?
Its the expectation of a run on the bank as the shares beocme worthless too IMO
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Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
User status: Offline
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quote:
Originally posted by Cosmo
quote:
Originally posted by Eck
Why when a company is expanding would they downscale the staff base?
As thats the whole reason for mergers, so you can make use of economies of scale and cut down on the costs to both companies. As a very broad example, a merger would allow them to cut down on management costs, minion employee costs, building costs, etc. etc. as they wont need double the management, double the work force and double the amount of building space to cater for all their needs.
Fair point. But again to bring back the last "merge" of Bos and Halifax, nothing at all changed with the buildings etc, all it was is a different system!
I'll continue this later, gotta go back to work 
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Eck
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Registered: 17th Apr 06
Location: Lundin Links, Fife
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quote:
Originally posted by Robbo
All of BBC Eckles matey
Thanks mate, I'll have a read of that later, and determine if it's worth getting up for work Tomorrow
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Robbo
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Registered: 6th Aug 02
Location: London
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quote:
Originally posted by Eck
quote:
Originally posted by Cosmo
quote:
Originally posted by Eck
Why when a company is expanding would they downscale the staff base?
As thats the whole reason for mergers, so you can make use of economies of scale and cut down on the costs to both companies. As a very broad example, a merger would allow them to cut down on management costs, minion employee costs, building costs, etc. etc. as they wont need double the management, double the work force and double the amount of building space to cater for all their needs.
Fair point. But again to bring back the last "merge" of Bos and Halifax, nothing at all changed with the buildings etc, all it was is a different system!
I'll continue this later, gotta go back to work
That was nigh on a legitimate merger though, as close as youll find anyhoo... branches in diff places etc, whereas with lloyds/halifax youll find one fo each in pretty much every major town and city in the country, thye wont need both, nor will they need 2 head offices etc etc
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Robbo
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Registered: 6th Aug 02
Location: London
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quote:
Originally posted by Eck
quote:
Originally posted by Robbo
All of BBC Eckles matey
Thanks mate, I'll have a read of that later, and determine if it's worth getting up for work Tomorrow
http://news.bbc.co.uk/1/hi/business/7621151.stm
http://news.bbc.co.uk/1/hi/business/7620744.stm
PS It will be
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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quote:
Originally posted by Robbo
That was nigh on a legitimate merger though, as close as youll find anyhoo... branches in diff places etc, whereas with lloyds/halifax youll find one fo each in pretty much every major town and city in the country, thye wont need both, nor will they need 2 head offices etc etc
Exactomundo my maradona hating, white shoe wearing, southern friend.
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Robbo
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Registered: 6th Aug 02
Location: London
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still not worn those shoes once! Must do soon and take pics!
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Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
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A deal is agreed! 
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James
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Registered: 1st Jun 02
Location: Surrey
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I hear they are going to use a combination of some letters from both company names and be called...........
Sly Old Toss
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Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
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James, you haven't been involved in banter as much since --dave-- was banned, and YodaF disappeared...Bring back the banter
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James
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Registered: 1st Jun 02
Location: Surrey
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funny you should say that, I found this lurking in my u2u sent items the other day:
Hush little badger, please don't cry.
Mama's gunna buy you some GTF pie.
And if that pie dont cheer you up.
Mama's gunna make you STFU.
And if you act like you don't care.
Mama's gunna send you some pics of Claire.
Good times.
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