The 2008 HBOS Rights Issue
In April 2008, HBOS was on life support when, in a last throw of the dice, the Board decided to launch a rights issue to raise some £4 billion in capital. This was a spectacularly ‘bad’ decision, not because the issue was a complete flop with just over an 8% take-up, but because the prospectus that the Board approved was to put it mildly a ‘work of [half] fiction’, particularly as regards the level of provisions for credit defaults.
The Centre for Risk, Banking and Financial Services at the Nottingham University Business School has obtained funding from the Economic and Social Research Council (ESRC) to run a series of seminars on People Risk.
The next seminar in the series is on 8th October 2014 at Glasgow Caledonian University , on the topic of “the challenges for research and practice in ‘people risk’ management within the domains of aviation and the health sector”.
What is Groupthink?
Groupthink is one of the most widely-used but least-understood terms in Business . We all know that Groupthink refers to the tendency of a group to coalesce around a common position, for example a Board of directors on a corporate strategy or senior management on a cost-cutting program. It is what groups do after all, otherwise they will break up in conflict.