There is an excellent post by Robert Peston today on his blog at the BBC website. <here>

In his article he looks at the events that led to HBOS having to go to the market to raise more cash to help refill their coffers. Once again we must ask ourselves how these apparently very bright and intelligent people allowed themselves to be so misled as to think they were making good investments when, in fact, they were buying bad debts. They then compounded their mistakes with increased payments to shareholders at a time when their funds were shrinking. It does all make you wonder if the management of these banks really did understand what was going on at the time. What is more worrying perhaps is that maybe they still don’t know.

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Filed under: Banking

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