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jimmylad

Rbs Shares

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After todays plummet of 70% I find it a bit suspicious that their shares weren't suspended.

A cheap takeover for the government ??

Sorry if been asked before. Can't keep up today.

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Guest sillybear2
And on this note, does the RBS share price impact on their capital ratios at all??

FSA suspended capital ratio requirements today.

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After todays plummet of 70% I find it a bit suspicious that their shares weren't suspended.

A cheap takeover for the government ??

Sorry if been asked before. Can't keep up today.

I think there are two types of suspension. one is where a share falls 10%, then i think all bid/offers are cancelled and then a new auction process begins and the stock opens 10mins later. however thats with auction exchanges which I think the LSE (ftse) is not - its SETS or SEAQ or something...

the other kind is when the company itself requests suspension (CEO killed etc) and i doubt announcing terrible results (that were expected) is a reason to suspend shares...

still an interesting topic.

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ta sillybear

that is really quite astounding

http://www.telegraph.co.uk/finance/newsbys...quirements.html

It just really proves why none of this is gonna work! Darling on radio this morning says he wants banks to lend prudently, but then on the other hand is trying to get banks to lend more!!

What I still dont understand is whether the market price of the shares has anything to do with this??

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What I still dont understand is whether the market price of the shares has anything to do with this??

it doesn't really, not now. Share price is behaving exactly the same as any other company with a highly uncertain future and potential wipeout of equity holders. In these cases the market gives up on valuing the business, and bases investment decisions only on the binary judgement of whether or not bankruptcy (or in RBS' case full nationalisation) will occur. Today RBS holders have voted with their feet, selling out at any price and basically saying "over to you, govt/taxpayer".

11p or whatever it closed on is just the price of a punt on nationalisation not occurring - there'll always be some kind of price for that trade, but as the share price continues to drop, the market is shortening the odds on nationalisation. Unbelievable that RBS is now just another "penny dreadful" as FT Alphaville would call it!

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So if i got this right you are saying that its not the falling share price that affects the capital ratios, its just the upcoming losses??

I have to say that this all seems a bit bizarre. If the banks can make an 8billion profit, shouldnt they be able to sustain a few years of losses without collapsing??!

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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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