Jump to content
House Price Crash Forum
Sign in to follow this  
tippingpoint

Market Manipulation To Create The Bad Bank

Recommended Posts

Is there perception management in the air, to drive down the share price to allow RBS to be bought for a mere £1 bn, then to create the UK's "Bad Bank".

The idea of a bad bank, a separate entity which takes ownership of non-performing assets and then manages them in order to maximise their value, is simple. The Swedes set up two bad banks to handle the crummier assets of Nordbanken and Gota Bank, two nationalised institutions. They were effective (indeed, some borrowers complained they were too ruthless). Their efforts to restructure and sell distressed loans helped Sweden to keep the eventual cost of its bail-out below 2% of GDP.

My guess is that RBS will be nationalised (or close to it) then buy the toxic crap off everyone else.

Share this post


Link to post
Share on other sites
We don't need to create a bad bank. We have loads already.

They should create a good bank instead.

One of the funniest posts i have seen in the two years i have been here.

Yet sadly true

Share this post


Link to post
Share on other sites

There is a difference between selling and short selling.

As companies have to notify the FSA if they're short (over a certain amount?) on these stocks, i'm sure someone would be raising hell if it was the evil nasty candy stealing short selling hedgies that had caused this, rather than ickle little things like the banks being technically bankrupt.

Share this post


Link to post
Share on other sites

Re: creation of a bad bank....

Prime Minister,

I can see how merging the rest of the banking system into just one bank is on paper a good idea, however unfortunetly you see although you are reducing the number of problem banks, unfortunetly the size of the actual problem bank balance sheet assets will just go up, I know they didn't teach you this at school but its a complex mathematical transaction involving taking two balance sheets and putting them together, called by certain financial wizzards 'addition'.

In the absense of any credible way to get out of this, you should go on the telly and sound confident... reasure the people their money is safe in the country between Iceland and lreland. and that RBS has rock solid assets and that every thing will be ok...

yours

Junior treasury adviser

Jonpo

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.