Ex-Abbey chief tables Rock plan as HSBC suffers

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

HSBC today became the latest target of speculation after analysts at Lehman Brothers said it could have to boost its reserves against subprime loans in the US by as much as $2.4 billion (£1.15 billion). Its US business HSBC Finance is due to report third-quarter numbers on Wednesday.

HSBC shares, which fell 1.4% on Friday, were down another ½p at 840p today. Royal Bank of Scotland and Barclays which shed 3% and 2.4% respectively on Friday, stabilised today, with RBS up 12p at 414¾p and Barclays 13½p better at 488p.

Barclays was forced to deny rumours about its potential writedowns and the future of its chief executive John Varley and President Bob Diamond after its shares were briefly suspended in hectic trading on Friday.

Barclays has sought to reassure investors by saying its trading update in a fortnight's time is likely to include far more detailed financial information than usual.

It would not confirm that it is working with auditor PricewaterhouseCoopers to give a fully-updated balance sheet for Barclays Capital, which is where any subprime-related writedowns are likely to appear. However, a source close to the bank said it was "aware of what the markets are interested in and we have always been at the transparent end of the spectrum".

Northern Rock needs to be dealt with quickly before its liabilities become any greater, sources close to Arnold's investment group Olivant said today. It said it had the backing of "a dozen blue-chip" UK institutional investors and wealthy families.

Arnold wants to parachute in a team of seven professionals led by himself to stabilise the former building society which he does not believe can survive the three months or more it would take for a full-scale takeover to go through.

Olivant would subscribe for new shares in Northern Rock up to a 20% stake. It told the Stock Exchange it does not plan to bid for the whole company.

Northern Rock shares today rose 2.1p to 147.1p