Credit crunch 'to last into 2010'
HBOS chief Andy Hornby: 2010
About two-thirds of wholesale funding received by UK banks comes from overseas - primarily from the US. And the HBOS chief said that US money-market investors would not resume channelling of money to UK banks for mortgage-lending until US house prices started to recover - a process he said was set to last well into 2010.
Housprices as colateral for banks? Production is money in !
"My personal view, for what it's worth, is that it will take 18 months to play through the system," Mr Hornby told our business editor in the latest of his Leading Questions programmes. "It's going to take 18 months before US house prices have started to rise again - which is what's required for banks to have the confidence to start lending again.
No reason, why should someone invest in housing market US. $ 2 bn go to civil development of Georgia, the speculation is transferred to new areas, as well as china. The players don't go back to military-industrial investment, if no sub-prime scam goes with it.
UK economy 60 years low:
His comments add to a gloomy week of economic news, following chancellor Alistair Darling saying that the economic times faced globally "were arguably the worst they've been in 60 years".
(Andy Hornby, CEO of Halifax Bank of Scotland)
The credit crunch is likely to last well into 2010, the head of the UK's largest mortgage provider has warned.
HBOS chief Andy Hornby told the BBC it would take 18 months before US house prices started to rise again.
That was needed "to give the confidence back into the system for banks to start lending again," he said.
His comments suggested there was little that the UK Government could do to stimulate the markets