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Dump Your Bank Shares Now

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This is an interesting article over on MW that MSW originally had in the FT. It basically is looking at the UK banks and how opaque they are re their levels of debt. I found the following snippet to be revealing:

The idea that the banks all have problem loans that are not officially recorded is not new. But, again, we shouldn't get so used to the fact that we forget that its scale is utterly abnormal.

A private-equity friend tells me of one of our megabanks coming to his team to try to sell £1bn-worth of second-grade consumer debt. The bank had valued it at 85% of face value. His team verbally valued it at 35%.

They were asked not to submit a bid: as far as the banks are concerned, if you don't acknowledge something, you can just keep kicking it down the road in the hope it somehow stops being a problem. It is always better to delay marking something down than to actually mark it down, particularly if doing so means you end up needing to raise more capital.

My point here is not just that our banks are probably still in a great deal of trouble (even before a Greek default). It is that they remain entirely opaque.

http://www.moneyweek.com/investments/stock-markets/uk/why-you-should-dump-your-bank-shares-now-12403

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This is an interesting article over on MW that MSW originally had in the FT. It basically is looking at the UK banks and how opaque they are re their levels of debt. I found the following snippet to be revealing:

http://www.moneyweek.com/investments/stock-markets/uk/why-you-should-dump-your-bank-shares-now-12403

I see zombies.

Bank zombies. homeowner zombies. Job zombies.

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This is an interesting article over on MW that MSW originally had in the FT. It basically is looking at the UK banks and how opaque they are re their levels of debt. I found the following snippet to be revealing:

http://www.moneyweek.com/investments/stock-markets/uk/why-you-should-dump-your-bank-shares-now-12403

Well my ZOPA account is doing a bit better lately how ever the bad debt is still more than my profit (I'm up by £650 but it should of been double that) so 35% on what the bank thought they were going to make sounds right. You only have to have one loan go bad to wipe out the profit of 10 good loans (probably)

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corrected that one for you

apparently at the end of the article she also advises to get out of world com and Energis as they may have run their course but Marconi and Bethlehem steel still look sound as a pound.

Edited by georgia o'keeffe

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A private-equity friend tells me of one of our megabanks coming to his team to try to sell £1bn-worth of second-grade consumer debt. The bank had valued it at 85% of face value. His team verbally valued it at 35%.

They were asked not to submit a bid: as far as the banks are concerned, if you don't acknowledge something, you can just keep kicking it down the road in the hope it somehow stops being a problem. It is always better to delay marking something down than to actually mark it down, particularly if doing so means you end up needing to raise more capital.

Not that they might have been haggling then?

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This is an interesting article over on MW that MSW originally had in the FT. It basically is looking at the UK banks and how opaque they are re their levels of debt. I found the following snippet to be revealing:

http://www.moneyweek.com/investments/stock-markets/uk/why-you-should-dump-your-bank-shares-now-12403

Very interesting article. Thanks.

This is worrying :

I've written before about the way that UK banks appear to be dumping good loans but rolling over bad loans in order to make good their capital ratios. They need to have fewer loans on their books but they can't get rid of the bad ones without writing them down – which they clearly don't want to do – so they dump the good ones instead.

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Very interesting article. Thanks.

This is worrying :

its akin to averaging down in investment parlance your cut your winners short for fear of losing the gain and run your losers off the cliff for fear of realising the loss, pure emotional power forcing magnification of the worst possible outcome. Of course it also perfectly encapsulates why economics is futile

Edited by georgia o'keeffe

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I've got a small amount of Santander shares that I've had since the abbey days. For the last 2 years they've been trying to flog me more shares without having to pay any fees. They are screaming out for money

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NOW!?

Really?!

Ooo goody, I love contra indicators.

LOL. fill ya boots with banks stocks!

(perhaps I'll wait for RB to go bearish on banks too, then I'll pile in) :lol::lol:

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  • 312 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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