Serious concerns about my old alma mater Bank voiced from Citi analysts.  They have a significant funding gap apparently, although by my calculations they are very well capitalised.  Their issue appears to be liquidity.  The vultures are lurking.  In a related note, apparently 25% of WAMU shares are sold short at the moment.  HBOS falls on wholesale funding concerns Shares in the UK’s largest mortgage lender fell up to 40 per cent earlier in the session and settled 50½p lower at 182p, cutting its market capitalisation to £9.58bn ($17.1bn). The collapse of Lehman has made banks more reluctant to lend … Continue reading HBOS … could they be next?

Barclays are coming under considerable scrutiny as a result of two unrelated sets of circumstances.  Nerves are frayed amongst bankers, even the big ones! FT.com / Companies / Financial services – Anxious market catches Barclays short of £1.6bn The trigger for the crisis of confidence was the unexpected resignation two weeks ago of Edward Cahill, the Barclays investment banker responsible for creating vehicles such as Cairn High Grade Funding.  Although a relatively junior banker, Mr Cahill’s departure sparked rumours about possible losses at the bank. Nevertheless, confidence took such a knock that, after a technical glitch disrupted the money markets … Continue reading Barclays – bad time to take holidays!