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Deckard

Rbs To Shed £33 Billion Of Non-u.k. Property Loans

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http://www.bloomberg.com/apps/news?pid=206...id=aQ.VM1mXAo8Y

Sept. 14 (Bloomberg) -- Royal Bank of Scotland Group Plc, the largest bank rescued by the U.K. government, plans to close its overseas commercial-property unit and dispose of the 33 billion pounds ($55 billion) of loans that it holds, a person familiar with the plan said.

The Edinburgh-based bank already stopped lending to commercial real-estate investors and developers outside Britain, said the person, who declined to be named because the plan hasn’t been made public. The company will seek to gradually redeem or sell all the unit’s existing loans, the person said. Some will need to be restructured first.

...

The bulk of RBS’s overseas lending was to western European investors, who borrowed 22.1 billion pounds. The bank’s North American loan book totaled 6.8 billion pounds and 3.9 billion pounds was lent to investors in other regions.

:o and if that wasn't enough

Lloyds, following its merger with HBOS Plc, has about 29 billion pounds of non-U.K. property loans, including 11.6 billion pounds in Ireland, according to a Sep. 7 report by research firm Creditsights Inc.

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The bulk of RBS’s overseas lending was to western European investors, who borrowed 22.1 billion pounds. The bank’s North American loan book totaled 6.8 billion pounds and 3.9 billion pounds was lent to investors in other regions.

Lloyds, following its merger with HBOS Plc, has about 29 billion pounds of non-U.K. property loans, including 11.6 billion pounds in Ireland, according to a Sep. 7 report by research firm Creditsights Inc.

22.1 + 6.8 + 3.9 Billion RBS

+ 29 Billion Lloyds

And all lent overseas ... :o

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Situation worse than before.

http://www.bloomberg.com/apps/news?pid=206...id=aYdgQkXu9eBg

Stiglitz Says Banking Problems Are Now Bigger Than Pre-Lehman

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By Mark Deen and David Tweed

Sept. 13 (Bloomberg) -- Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.

“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,†Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.â€

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a person familiar with the plan said

Sounds like another Govt. insider dumping news of sensitive 'plans' to the media before the formal announcement.

Someone should jump up and down on Gordon's govt. for this sort of stuff. They've turned the markets into just another govt. dept. :angry:

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Also are these loans performing or not, the article didn't appear clear when I skim read it.

if their loans are AAA, then they are "worth" 28% of face value.

AA well a stunning 4%

looks like a visit to the barbers.

course, QE could come to their rescue....swap 4p loans for nice crisp 100p. course the taxpayer is going to really capitalise on this bargain.

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Situation worse than before.

http://www.bloomberg.com/apps/news?pid=206...id=aYdgQkXu9eBg

Stiglitz Says Banking Problems Are Now Bigger Than Pre-Lehman

Share | Email | Print | A A A

By Mark Deen and David Tweed

Sept. 13 (Bloomberg) -- Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.

“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,†Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.â€

Bankks really need cutting back in size. In what they do and their rates of pay. Why are we as tax payers subsidising these gamblers. If the government suppoted Ladbookes and allowed them to pay vast salaries there woudl be a massive outcry. :lol:

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Sounds like another Govt. insider dumping news of sensitive 'plans' to the media before the formal announcement.

Someone should jump up and down on Gordon's govt. for this sort of stuff. They've turned the markets into just another govt. dept. :angry:

In all fairness RK, leaking news to the press ahead of an announcement has been common practice for a very long time.

Even the banksters themselves do it regularly.

I remember back in October 2001 when ML leaked to the press that they were going to reduce global headcount by 10,000 (a huge cut even for a firm of their size).

The measures weren't implemented for another three months, but in the meantime a lot of people left by their own will - which is exactly what ML management had been try to achieve.

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In all fairness RK, leaking news to the press ahead of an announcement has been common practice for a very long time.

Even the banksters themselves do it regularly.

I remember back in October 2001 when ML leaked to the press that they were going to reduce global headcount by 10,000 (a huge cut even for a firm of their size).

The measures weren't implemented for another three months, but in the meantime a lot of people left by their own will - which is exactly what ML management had been try to achieve.

Did the share price go up by any chance after the announcement?

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In all fairness RK, leaking news to the press ahead of an announcement has been common practice for a very long time.

Even the banksters themselves do it regularly.

I remember back in October 2001 when ML leaked to the press that they were going to reduce global headcount by 10,000 (a huge cut even for a firm of their size).

The measures weren't implemented for another three months, but in the meantime a lot of people left by their own will - which is exactly what ML management had been try to achieve.

It does appear to have become endemic with the banksters/govt. though - We had all that fuss over the leaks to Peston.

It smacks of Gordon pre-announcing the gold sales.

Perhaps it signifies we're near a bottom in commercial property. :P

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So we sell ourselves the toxic sh1t that we already own, or rather we go from 70% ownership to 100%.

Excellent value.

It is the right thing to do in order to help hard working families in these difficult times, that started in America.

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