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Rbs Loose At Least £8bn (19th Jan)

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RBS this morning announcement it will lose at least £8bn when it announces its results in February.

http://www.hemscott.com/news/static/rna/it...=72685882093332

For those of you not savvy in such things here is a short breakdown of what’s happened.

In normal trading the business lost £8bn (£8,000,000,000).

It is creating another £5bn (£5,000,000,000) worth of new shares, given the fall in the price these will almost certainly be bought by the government.

The £5bn of preference shares the government already has will be converted to ordinary shares, which relive the burden of the bank to make dividend payments, but does dilute further still shareholders.

In addition to trading looses it appears the assest it holds on the balance sheet are overvalued. And has written these down by £20bn (£20,000,000,000)

It may have to write them down another €19bn.

There is also credit market write downs of £8bn.

To explain this think of trading income as your salary. And your capital as your house.

So if RBS was a Person you might think he lost £8,000 off his salary and his house lost £20,000 and possible another £15,000.

So the capital loses have no immediate cash effect. As the assets are still physically there (like a house) but are just worth less. While the trading loss is a real cash loss.

I should point out that RBS IS still solvent, and most of it is actually operating perfectly fine. I still believe at this time the business will survive. And quite possibly at least some of it will still be owned by the shareholders.

If you have shares in RBS you could cut your looses. Or take the view that what you have is now worth so little you might as well take a gamble on recovery a few years down the line.

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In other news Barclays was up 20% after reporting that its profits would be well in excess of £5bn, £5,000,000,000.

This is clearly beginning to show the difference between a well run bank, and a bank that looks like it was run by Gordon Brown.

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In other news Barclays was up 20% after reporting that its profits would be well in excess of £5bn, £5,000,000,000.

This is clearly beginning to show the difference between a well run bank, and a bank that looks like it was run by Gordon Brown.

Barclays was down 20-25% on Friday though, so surely they are just where they started from on Thursday?

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Barclays was down 20-25% on Friday though, so surely they are just where they started from on Thursday?

All the banks are up and down more than a whores draws.

That said, some banks are worse than others.

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Inflation? there is HUGE asset deflation in these banks.

thing is, its mostly not things that are deflating, those are deflating at quite a low rate, its financial assets within financial assets leverage squared where the problems lie.

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The question, as raised elsewhere, is whether Barclays have actually revalued their assets. This was the cause of the boardroom arguments last week.

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In other news Barclays was up 20% after reporting that its profits would be well in excess of £5bn, £5,000,000,000.

This is clearly beginning to show the difference between a well run bank, and a bank that looks like it was run by Gordon Brown.

plus barclays have not been aggressively writing down valuations, yet..

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plus barclays have not been aggressively writing down valuations, yet..

Yes - 5.3 billion doesn't sound like a lot of profit, when RBS wrote off a loan for 2 billion plus to a single individual.

Until they become more transparent, they are going to be liable to this swings.

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RBS Chairman

Sir Tom McKillop* (age 65)

C, N, R

Appointed to the Board as Deputy-Chairman in September 2005, Sir Tom is a non-executive director of BP plc and president of the Science Council. He was formerly chief executive of AstraZeneca PLC, and was previously president of the European Federation of Pharmaceutical Industries and Associations and chairman of the British Pharma Group. He is a trustee of the Council for Industry and Higher Education.

Surely this pr!ck will now be duly 'un-knighted' or whatever you'd call it?

You, 'Sir'....are a DISGRACE.

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The question, as raised elsewhere, is whether Barclays have actually revalued their assets. This was the cause of the boardroom arguments last week.

Exactly

Barclays can not reveal asset values unless they would no longer be able to trade "independantly". Barclays will be nationalised at some stage.

It is even a possibility HSBC will be nationalised or at least require support.

The credit crunch has started to hit big time and it wont be long before it will affect the "real" economy (another big customer of ours gone over the weekend leaving us with a nasty bad debt and litegation, this company was seen as a good customer just a few short days ago. It is happening so fast.)

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government buys RBS and makes a loss

government sells gold and makes a loss.

government saves the banks then hasnt, but has spent a ton

I am seeing a pattern here.

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At what point will they suspend trading?

They are taking a tonking!!! 19p

Iam going to sign on!!

There would be no value in suspending them, it would be like stopping people moving house for 3months, it would have no effect once they start trading again.

EssexFTB, do you know what you will do?

I would not have recommended a purchase, but selling into a market as spooked as this might not be your best long term move.

If your prepared to take a long term view 7 years + you might think at this point you may as well hold. It will Either go bust soon, or in the long term make most if not all of your money back.

Either way you have learnt that if you punt £12k on the stock market without having researched your investment in detail you have to be prepared to lose it all.

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We are saved!

The collapse of the fiat empire is the best news anyone who isn't a top flight banker or in the governments upper reaches could wish for.

id agreee.

its hard to face the reality that the last 20 years have been a sham.

but its still bad news as the general public will have to face inflation of an almost unworkable nature.

the only way out was to increase further as the damage cant be limited any longer.

i think this week we have reached a turning point of financial banking ability and the publics perception of hpi from a good thing to a bad thing. will they let go of their insane gains ?

either they do or we all go down.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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