Thursday, Jun 03, 2010
Who will buy? lol
Telegraph: UK must sell bailed-out banks to save AAA rating
Politicians should be less fixated on selling the stakes for more than the price they were bought at, according to the report, which says a quick sale could help steady the UK's finances.
JP Morgan Cazenove analysts estimate the cost of funding the state's holdings in Lloyds and RBS at £3.2bn a year, and recommend the Government stave off a ratings downgrade by selling the stakes quickly.
Posted by mark @ 11:31 AM (1091 views) Add Comment
4 Comments
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1. mark wadsworth said...
The shares that we taxpayers own in RBS and Lloyds are the least of our worries (£40 billion we spent on them, perhaps? if it's gone it's gone)
It's the £300 or £400 billion taxpayer funded/backed/underwritten loan guarantee schemes etc which ought to be withdrawn/repaid etc. There was an agreed schedule for this, but the chances are the Lib-Cons will keep extending the deadline for repayment. Sure, that might see the value of our shares fall to £zero, so what? Continuing to prop up banks with a £400 billion loan in order to preserve the value of a £40 billion investment looks like "throwing good money after bad" to me.
2. paul said...
JP Morgan has just been stung badly by the FSA. They have an axe to grind - the axe is their understanding of the UK's parlous finances. The grind is this article. That does not however mean that it lacks credibility.
3. d'oh said...
Erm, if they are in such a parlous state that they are a threat to a large developed country's AAA rating, then who would buy them?
Or does JP and its brethren see an opportunity to make a killing?
4. Thisgent said...
Seeing as I work at RBS, the most likely outcome for RBS is they will split up the bank into it's Retail and City portions. I see Deutsche Bank as a likely buyer for at least some parts of the nationalised UK banks like RBS, as they haven't yet bought any crunched assets.