"There has been a series of rumours in the market today. A number of ill-founded and malicious rumours about the UK banking system in the markets. These rumours have not a shred of substance whatsoever. They are lies." -- HBOS

"There has been a series of completely unfounded rumours about UK financial institutions in the London market over the last few days, sometimes accompanied by short-selling." -- UK Financial Services Authority

Yesterday saw HBOS shares go into free fall, a 17% drop in a single day.

 http://news.bbc.co.uk/1/hi/uk/7306122.stm

HBOS blamed speculators for spreading rumours, but was this a smokescreen to cover massive black holes? Does the bank protesteth too much?

 http://news.bbc.co.uk/1/hi/business/7305039.stm

I have an account with Halifax. They have been zapping it with unlawful charges, which I refuse to pay. They have twice agreed to pay this money back, but because I refuse to sign a declaration that I will have no further claim against the bank, I have yet to receive a single penny of what is owed.

 http://www.indymedia.org.uk/en/2007/02/363556.html

Now the bank is chasing me with cowboy debt collectors. When I offer to counter sue, they back off.

Speaking with a friend, he has experienced exactly the same problem with Halifax. Multiply that up over all their account holders, and a massive multi-million pound black hole opens up.

The property market is expected to crash in 2010. Halifax is a major mortgage lender. Revalue all their assets, a multi-billion pound black hole opens up in their accounts.

All it will take is one picture of a queue outside a Halifax branch, and HBOS will go the same way as Northern Rock.

I was at a meeting a couple of years ago at which Treasury people were present. It was an open secret that the banks were facing meltdown. It was not openly discussed for fear of triggering the very crisis they feared.

The problem is debt and bad lending. Debt that is not sustainable.

All the banks are chasing bad debts which they know are unrecoverable. Debts that should be written off.

This morning the major banks went cap in hand to the Treasury demanding credit to bail them out.

 http://news.bbc.co.uk/1/hi/business/7306058.stm