Almost every bank and mortgage related company in the US and Europe is trying to round up new money so it's no surprise that Britain's HBOS failed in its attempt to raise billions to replenish its coffers. Objectively, who would want to throw these gamblers any more cash considering how poorly they've managed money in recent years? As the credit crisis continue in the US, we will be seeing more cautious investing in this dodgy business. To give them anything will only encourage more of the same risky behavior, including bonuses for selling more trash. This industry still thinks that its 2004 or 2005 when money was no object.
An attempt by British bank HBOS to raise 5.0 billion euros from shareholders to bolster finances hit by the credit crisis flopped on Monday, and underwriting banks were set to pick up the tab.
The country's biggest mortgage lender, seeking to boost its capital after heavy credit squeeze writedowns, said investors had agreed to buy just 8.29 percent of its 4.0-billion-pound or 7.9-billion-dollar rights issue.
A bank spokesman blamed the poor take-up on a "fierce financial storm" that has battered the financial sector amid fallout from the collapsed US subprime housing market and the related credit crunch.
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