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Government Loses £10.9bn In Rbs And Lloyds - Paperloss Only

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http://business.timesonline.co.uk/tol/busi...icle6698135.ece

UK Financial Instruments (UKFI), the body that manages the Government’s shares in some of Britain’s biggest banks, today admitted that it is sitting on paper losses of £10.9 billion.

The body, which is in charge of the Government’s 70 per cent stake in Royal Bank of Scotland and its 43 per cent holding in Lloyds Banking Group, also refused to give an indication of when it expected to dispose of the shares in the lenders.

The UKFI said today that every household in the country has more than £3,000 invested in Lloyds and RBS shares. It said: "Our own task of returning these investments to the private sector is challenging.

“The amounts involved are very large, and a successful disposal of our holdings will require professionalism and patience.â€

The Government sank £20 billion in taxpayers' money into RBS but the stake is now worth just £15.3 billion. Lloyds, which owns HBOS, received £14.5 billion in state-funding but the holding is now valued at £8.3 billion.

The losses in the banks is less than the £18.1 billion shortfall revealed in February.

UKFI’s report makes clear that it could be years before RBS and Scotland are back in private ownership, although the ultimate decision on any disposal will be the taken by the Treasury.

It adds that the most likely exit for the Government will be through an initial public offering of the stakes.

“While there are many possible approaches open to us, including strategic sales, our central assumption in thinking about our disposal programme is that we are likely to be selling shares to investors in the public equity markets,†said the Government body this morning.

The Government’s stakes in RBS and Lloyds will increase when the Treasury’s insurance scheme – the Asset Protection Scheme – kicks in. At that stage, taxpayers will probably own more than 80 per cent of RBS and more than 60 per cent of Lloyds.

As I'm on the hook for £3k when this excellent investment opportunity brings in a profit do I get my share or is that I'm just on the hook for the risk and not the profit.

Excellent investment from the govt here.

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Read the comforting words of one Hamish McFlugle

Mortgage approvals are currently running around one third of what they were at peak. Bank margins are now around 3 times what they were at peak.

The only people who haven't lost out, it seems, are the bankers......

From the article....

Analysts say that when the huge provisions are put to one side, Lloyds is now highly profitable and has a dominant market share in the UK.

It's his third post out of seven, & that is just on the first page!

http://forums.moneysavingexpert.com/showth....html?t=1810681

Where would the world be without him? :blink:

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http://business.timesonline.co.uk/tol/busi...icle6698135.ece

As I'm on the hook for £3k when this excellent investment opportunity brings in a profit do I get my share or is that I'm just on the hook for the risk and not the profit.

Excellent investment from the govt here.

You obviously don't understand the complexities of investment.

When an investment tanks it is a "paper" loss and, yes. you are on the hook for this but not to worry as this is only a "paper" loss which you will have to make good with increased taxation.

If there is a "paper" gain Hester will take a huge non-paper profit. You will not even make a paper profit but you will be in the happy position of being offered shares to buy for real money for more than they are worth now. If you are fool enough to do this the government make a real profit and will pay their friends and supporters out of those real profits.

Simple really

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Some bright spark (according to Sky) suggested that the £3,000 to which we're each entitled be distributed as shares which caused some alarm and the response that the govt wants an orderly diposal of the shares at the proper time - I reckon I could just about manage to dispose of those shares in an orderly fashion - you know, without screaming or running riot!

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Some bright spark (according to Sky) suggested that the £3,000 to which we're each entitled be distributed as shares which caused some alarm and the response that the govt wants an orderly diposal of the shares at the proper time - I reckon I could just about manage to dispose of those shares in an orderly fashion - you know, without screaming or running riot!

The shares wont be distributed any more than the BT or BG shares (which were previously owned by the taxpayer) were distributed.

If they become worth anything they will be sold to the people who already own them.

In fact it will be the second time TSB has been sold to the public even though the public already owned it. Its like the gift that keeps on giving for financial sector who make huge profits from these sales..

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The shares wont be distributed any more than the BT or BG shares (which were previously owned by the taxpayer) were distributed.

If they become worth anything they will be sold to the people who already own them.

In fact it will be the second time TSB has been sold to the public even though the public already owned it. Its like the gift that keeps on giving for financial sector who make huge profits from these sales..

It's a great system for those with their snouts in the trough.

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