So all you need to know about HBOS is that in the UK they have the biggest mortgage loan book. Most are interest only which means theyre what the usa calls sub prime. We have falling house prices so they are going bust fast. No social subsidy from the tax payer should be used to rescue them!!!!

john, poole, uk

It is past time that the minimum for 100 percent coverage of deposits was increased. A limit of 35000 encourages those with deposits above that amount to move to one of those banks seen as "too big to fail" thus exacerbating any deposit run.

Ian Stuart, Frederick, USA

There is a clear lesson to learn about the market's dependence on one company. Companies should be able to fail and not destabalise a whole industry. AIG should have been prevented from taking such a position. They have been rescued to "protect taxpayers". Where was the protection before today?

Jon, London, England

It would be as well if some of the commentators got things right. A 12-year-old 'expert' on one of the TV channels (I won't shame it here) said that the 'HaitchBOS' problem would be out of the way when 'all this euphoria' passes. I think that he meant something different from euphoria!

Geoffrey Woollard, Cambridge, England

The idea of "moral hazard" has been long forgotten as central banks bail out these useless, pin-stripe cretins. Protect depositors' money by all means but let the rest of it go to the dogs.

Chris, Chipping Norton,

I think the biggest risk now is a bank run similar to what happened at Northern Rock back in March. Expectations are a self fulling prophecy, so its imperative the people in high places guarantee savers deposits, and alleviate any imminent panic.

Bezzy, London, United Kingdom

"Alistair Darling, is ready to issue a depositor guarantee"

Of course he is, and not to protect the public, but because the collapse of central banking, would be the end of government as we know it in this country.

ws, Manchester,

Why not ban short-selling and other like-minded financial tools for the next 12 months or so (and preferably forever). It will certainly reduce the volatility of the markets and encourage trade in real assets.

david Slatter, Cambridge, uk

"guarantees the first £35,000 of an individual’s savings" The Financial Services Compensation Scheme is funded by levies on scheme members (Financial services companies) .

That probably means it is roughly as reliable as the rest of the Financial Services industry

Haggard Pete, Sunderland, England

With the shares falling in Halifax what advise would some give about taking mortgage out with them?

Narinder, belvedere, UK

The real trouble is going to hit when people start queing around the block trying to draw money out of Halifax bank accounts and HBOS' £258 billion pounds of Savings starts being seriously depleated. Does anyone know what will happen if the aforementioned doomsday scenario plays out?

BEN, Ascot, uk

If Darling is ready to issue and unequivocal statement of depositor guarantee, he should stop dithering and do it. How ready do you have to be?
Once again this government is stalled by indecision and that's a worry.

Paul, Richmond, England

Financial advisers said that depositors should not worry because it was unthinkable that the Government would allow ordinary savers to be left out of pocket even in the highly unlikely event of HBOS failing.

With this government I've learned to think the unthinkable.

Greg, London, UK

Those saying HBOS is a victim of shortsellers should read the annual report of this institution. They have a global portfolio of real estate development projects. Most will be surprised at the extent of these commitments.

Ian, Madison, USA

HBOS has been the unfair target of speculators pushing the share price as low as possible. Now I wonder who may be doing that? The only losers in all of this will be shareholders. The FSA should have been involved in this pantomime a long time before now.

judy, Liverpool, England

A great example of the market delivering. Robert don't give the powers that be somebody else to blame. GREED was to blame, we are talking about corporate terrorists here.

Dave Bridge, Southport, UK

Where is the FSA when you need them most?

They should be prohibiting shorting of banking stocks to prevent this sort of thing happening.

David, London, UK

The Governor of the Bank of England once said they had to allow house price inflation to boost the economy. Gordon Brown said similar things. Socialism, spending taxation, speculation in house prices and paper assets does not create prosperity. Only industrial investment creates prosperity long term

Chris Coles, Medstead, Alton, United Kingdom

Banks are greedy shareholder driven institutions archaich in there practice of money and incompetent not not to see if you lend money to those who cant pay you end with nothing. RIP RBS owners of Halifax RBS MINT and others. If the Halifax falls then any bank can. As I say Capitalism is an illusion.

Chris, England,

It doesnt matter what HBOS and Halifax has or does not have - it is what the public percieve it has- which right now is not a lot. People have to learn that big business can go tits up as well as small businesses - its as simple as that

Mark Russell, Poitiers, France

Shorters are destroying HBOS, i think the FSA should what their paid to do and maybe everyone will be safe. Plus Darling should issue a statement giving some kind of security to banks.

Sunny, Coventry,

Has anyone thought that the spectulators who supposedly bet on a company falling are politically motivated?. Maybe Al Queda are behind it and it is part of their war on the west or on all capitalist non-believers.

Robert, San Sebastian, Spain

The Banking Industry hangs on a kife edge of confidence between bank & customer.

When the Bank loses the confidence of its customers, the Bank is dead.

Former adviser to BCCI

It is the core reason that Banks should never be subject to Government rescue. Other institutions-Yes Banks-No

Richard, Bucharest,

very fishy business!!, 8.45 am shares in h.bos plummeting to 50 percent down and low and behold 45 minutes later we hear that h.bos are in ADVANCED (much more than 45 minutes ) talks with lloyds with regards to a merger and h.bos shares are rapidly rising , could this have been known for a while?

nigel, bexley, uk

If you have a pension or an endowment of any description it has just been flushed down the toilet , they have been reckless , in the extreme , with your investments . Don't show them any loyalty with your cash because as night follows day they will will flush that away as well.Get out of banking !

Nick Dixon, Sutton Coldfield, England

When institutions are run by incompetents bonus hungry individuals who care only for themselves thats what is happenning.

NICHOLAS , LARNACA, CYPRUS

The HBOS situation just shows the power of hedge funds which are now regarded as vultures. Except that they are worse than vultures, which do nothing to hasten the end of their victims.
They are what Edward Heath referred to as ‘the unacceptable face of capitalism' and should be dealt with as such.

Mike, Valencia, Spain

If one good thing comes out of this, I hope it will be
the the last we see of that irritating Howard bloke, and those
all-singing, all-dancing TV ads for the Halifax.

Mark.H, London, England

AIG has effectively been nationalised, along with most of America's housing stock, making the US the biggest socialist state in the world. The debt now rests with the taxpayers of America. Well done the bankers! The economic fundamentals - cash deficit , high energy costs - remain.

C Smith, Norwich, UK

The Government should now seize ownership of Halifax and protect the 22m savers, or else we are going to have another Northern Rock crisis on a mammoth scale which could destroy our economy.

How long before the bank run starts on Halifax?

Dan, London , UK

The BBC last night suggested that HBOS was not safe and would be nationalised if it went under. Darling will like that! This morning they are saying they have been told that Lloyds will buy it. Blame the BBC for share price movements. Robert Preston must be asked to name his source for the leak.

Michael, UK,