AcedOut

local estate agent - check your facts and less assumptions please. I've never sold a property through an agent, only bought. And unless I'm mistaken, it's tough to choose an estate agent when you're buying (particularly since most vendors opt for a sole agent). I'd love to have dealt directly with the vendor(s), but your commission seeking filthy pockets prevent this somewhat. Again, your response merely strengthens my attitude towards your 'profession' (grammar aside). Do you not have anything better to be doing right now? Ahhh, no... probably not huh!? lol

SteveT - You must be a lucky man being able to buy a house with cash. Most people need some form of lending, so it would be tough without the banks around. I'll happily allow the estate agents to fall in the pit though - it's not like we need people to tell us what a room looks like and taking a fee for doing so...

fine wine and art = no CGT!

Jeremy - you are right, but if you trade at different strikes, it's possible to stay hedged within the given range of strikes and receive a premium to boot. My option theory is rusty at best, but looks like the FSA has done as I thought now anyway, banning short selling of select banking stocks.

Reread my earlier post, which states, "I'm not saying that short selling has caused all the problems, but it sure hasn't helped matters."

If you write a put option, you're net long the underlying (long delta). Yes, you can sell short to hedge (reduce your delta), but you can also write calls. In understand what you're saying, but the number of short positions must be limited somehow. Regulation of over-inflated prices? Surely an over-inflated stock would cause an investor to sell hence driving down the price? I'm not sure I follow that reasoning.

Regulators just cannot keep up with the bankers. A loophole will be found and exploited and regulation takes years to put in place. As regulation is established, a new more complex product / structure is invented. Regulation and control around banking is extremely complex. The Basel II regulation is only scratching the surface.

I can assure you that no one is laughing! This isn't going to be good for the consumer long term though, but better than to let a retail bank fold or get nationalised (again).

I'm sure the hedge funds bought back at a decent level to cash in on their shorted positions. And then probably went long before making a 45% gain on HBOS! I strongly believe that shorting rules should have been tightened up by now though - they are used purely as speculative bets. This has nothing to do with hedging positions - that's what put options are for. In the future, regulation around stock lending will be tightened up I'm sure. I'm not saying that short selling has caused all the problems, but it sure hasn't helped matters. It'll be interesting to see if Goldman bankers try to take the bank back into a partnership. This wouldn't surprise me, since I think a merger is the last thing they'd go for...

It's interesting that when Lloyds-TSB wanted to take over Abbey last year that they were rejected by the competition & monopolies commission. But in the current climate, the government are practically begging LLOY to buy HBOS! This is fine in the short term, but when the high-street only has two retail banks, that's not going to be good for the consumer. It will translate to uncompetitive rates in just about every banking product - mortgages included. I can't see how any of this is going to be good in the medium-term. Long term, perhaps the increased regulation will strength and secure capital markets, but that's a good decade away now I'd say.

So, just Goldman and Morgan Stanley left as the only IB-only banks. Interesting article here about what their next move may be: http://news.hereisthecity.com/news/business_news/8248.cntns

LloydsTSB & HBOS

Was it backed my AIG!?

lard - but it also states that it requires extensive refurbishment. Even so, looks like a bargain.

I got an offer accepted of ?460 on a 5 bed semi in ED, but I pulled out. It's still on the market at considerably higher than that.

My poker playing days have taught me to fold more!

I suspect it's from Julia or Duncan, who look after her office. Standard reply.

I completely disagree with the comments about Goldman. They are just exceptionally good at what they do and truly have the best talent working there. I can say that fairly good authority. They have been hit also (profits down 70%), but had the hindsight to take a big bet against credit spreads before the big collapse. They are typically highly regarded by their competitors. However, in this climate, anything can happen, so no IB is safe at the moment. What we may see now though is the remaining IB-only banks merging with retail banks, such that they can offer lending facilities and more diversification. As for insurance companies - disaster will strike if the monoline's go under or get downgraded. These are the insurance companies that back many of the financial contracts.

I've quite a few friends at Lehman and know a lot that moved over there this year (recently). One of my friends now has to move back to Moscow due to her working VISA. Many others will also have to leave the country. It's a pretty sorry situation in the city at the moment...

macker - No mention of JP Morgan, Citigroup, Barclays? They all have large IB operations too. As for size - it depends on how you measure it. Capitalisation, employees, revenue, profit???

If anyone wants to back this up, the reference number of the email is 01083327. The email (again) is JOWELLT@parliament.uk

They do now: Dear Mr xxxxxxx, Thank you for your email. I have written to Rt. Hon. Ruth Kelly MP, the Secretary of State at the Dept. for Transport, and I will get back to you when I receive a response. In the meantime, if there is anything further I can do to be of assistance, please do get in touch. With best wishes, Yours sincerely, Rt. Hon. Tessa Jowell MP

Administrator - there are nice people working at Lehmans. Please lock the door! ;)

A club maybe - there is a large basement in the plans..

I suspect that most ice cream vans aren't obeying the law! Perhaps I'm wrong, but point well raised otherwise..