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Lloyds Sees Profits Plunge

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http://www.independent.co.uk/news/business/news/lloyds-sees-profits-plunge-2331587.html

Taxpayer-backed Lloyds Banking Group swung to a loss in the first half of the year after it took a £3.2 billion hit to tackle the payment protection insurance scandal.

Lloyds, which is 41% state-owned, reported a £3.3 billion pre-tax loss in the six months to June, compared to a £1.3 billion profit last year.

Stripping out the provision set aside for customers mis-sold PPI, the bank saw underlying profits plunge 31% to £1.1 billion as it struggled with the "subdued" economic climate.

Can't wait for the RBS figures.

Rather shockingly there is subdued demand for loans....

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What bonuses are the group forced to pay for their financial brains this year.

As for government bonds, where borrowing is out of control, I think, as a government, I would default on selected bonds, those claiming for repayment while paying bonuses....they clearly dont need the money.

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What bonuses are the group forced to pay for their financial brains this year.

As for government bonds, where borrowing is out of control, I think, as a government, I would default on selected bonds, those claiming for repayment while paying bonuses....they clearly dont need the money.

I had to laugh when I heard them on the radio justifying big bonuses as necessary for retaining good staff. Well, you dont have any good staff, that's why you went bust.

Insiders at banks like HBOS and RBS have committed control frauds over the last ten years or so. The bonus is the vehicle by which the proceeds of fraud are conveyed from the bank to the individual. This is why big bonuses make us so angry, we all know what is going on.

And still no resolution from anyone in power to prosecute the wrong doing.

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Its amazing how incompetent the baby boomer leaders are in charge. Lloyds is a business that has generated profit, year after year for centuries. Its an easy business. Once you establish yourself as credible its easy to sell insurance.

Because no one is going to trust Wayne's insurance ltd, to actually pay out. While a company around since before they were born, they trust to do insurance. Including long term insurance policies. Also the sheer capital required to play the game on their level, makes such barriers to entry.

Like most businesses that are successful, its really boring and constant. The business can pay a bunch of professionals a good income and generally grows as the economy grows. Its only if you bring the get rich quick mentality into it, and start just gambling, like insuring financial derivatives.

Or selling dodgy insurance products like this PPI to customers. Would a company building a reputation over decades,e ven centuries sell questionable products.. no. On the bright side its good to see them try to correct that mis-selling.

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Lloyds closed for dealing. Fat finger? Lots of them?

oh oh...

210kp53.jpg

Nah no fat finger. These stocks are extremely volatile along with RBS and to a lesser extent barclays. It's not uncommon for them to down 5% one day and up 4% the next. Although lately it's more like down 4% up 2%.

They have fallen nicely this week. Hammered actually.

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Fancy making a loss when they are being given our money on a plate

Cut-price mortgages don't make up for the painful attack on savings by rock-bottom rates and soaring inflation, households say.

A poll of a cross section of the British public shows fewer than one in ten reckon they're benefiting from record low interest rates.

On the flip side, some 67 per cent told investment specialists Brewin Dolphin that a toxic low rates-plus-inflation mixture is eating away at the value of their savings and investments.

Mike Lenhoff, chief strategist at Brewin Dolphin says: 'Inflation is an evil whichever way you look at it and wherever you look.

'It is squeezing real incomes and savers are not being rewarded by negative interest rates.'

Many people don't have a cheap mortgage

It would be easy to think all homeowners are enjoying a rosy rates scenario with average mortgage rates sitting at their lowest levels since 1998.

Yet only those with tracker or standard variable rate deals have seen their rates automatically cut.

Others stuck on fixed rate deals have been nowhere near as lucky.

Borrowers who signed up to HSBC's fee-free five-year fix in the summer of 2007 - an attractive deal at the time - would have taken a rate of 6.49 per cent. Anyone who signed up for a two-year fix with Halifax in March 2008, for example, was stuck paying 5.99 per cent as some variable rates dropped towards 0 per cent in 2009.

Meanwhile, to take advantage and switch to the crop of new mortgages at low rates, borrowers need big deposits or sizeable equity in their home. The benchmark is a 25 per cent or larger deposit, which delivers best two-year fixed rate mortgages at around 2.5 per cent, or top five-year fixes at a superb 3.5 per cent.

Furthermore, not all borrowers on variable rates are seeing a big benefit from the low base rate.

Those with trackers have seen rates come down automatically, some who had lifetime deals taken out before the financial crisis hit are paying less than 1 per cent, meanwhile those who are on standard variable rates guaranteed not to go a certain level above base rate, such as Nationwide's 2 per cent limit, are paying 2.5 per cent.

But the average standard variable rate is 4.8 per cent, according to Moneyfacts.co.uk, and many big lenders have SVRs above 4 per cent. RBS/NatWest's SVR is 4 per cent, Santander's SVR is 4.2 per cent, YBS' SVR is 4.99 per cent.

Low rates and higher inflation - a toxic mix

The dramatic drop in borrowing costs over the last two years has been driven by a historic low Bank of England base rate, which has now sat at 0.5 per cent for 29 consecutive months.

But savings rates have crashed just as heavily since the Bank's momentous decision in March 2009. Until late July this year, the average easy access rate paid below 1 per cent until.

Anyone battling to save or invest has seen these low rates mixed dangerously with soaring inflation since the January 2010, when inflation started to take off.

Prices across the country have risen 5 per cent in the last year alone on the retail prices index (RPI). It means that outside of cash Isas, which pay interest tax-free, basic rate taxpayers need to find a savings account at 6.25 per cent or greater to prevent the real value of their cash being eaten away. Higher rate taxpayers need to find 8.33 per cent. No such account currently exists.

Read more: http://www.thisismoney.co.uk/money/saving/article-2020216/Low-mortgage-rates-dont-compensate-inflation-attack-savings.html

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Fancy making a loss when they are being given our money on a plate

A bit like Saddam Hussein and chemical weapons? If they ever liquidate the old HBOS and RBS I can imagine an inspection team spending years looking for mythical value.

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Nah no fat finger. These stocks are extremely volatile along with RBS and to a lesser extent barclays. It's not uncommon for them to down 5% one day and up 4% the next. Although lately it's more like down 4% up 2%.

They have fallen nicely this week. Hammered actually.

Saying that, they are down nearly 7% now!

My boss loves his bank shares. He bought barclays at 70p ish on a tip from his business banking rep there. He told me told buy them too, which i didn't. Then went up and he started thinking he was a genius so loaded up on Lloyds and RBS too. Can't remember what prices RBS was around 40p. He was almost shouting at me to buy RBS shares as they were so "cheap". I didn't buy any thank god. But I think his stupid buys of RBS and Lloyds have more than wipes out his profit from Barclays. Funnily he hasn't mentioned them for the last year.

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How fecking much have the taxpayers lost on Gordos bank purchases and not to forget his gold punt, whilst the bankers go on robbing us with self awarded bonus the economy crashes, because of them honest people are really struggling now with no end in sight.Any government with any semblance of testicles should step in and BAN all bonus payments at banks from today with max increases in wages linked to rpi for good performances only not performances like we have just seen on Sky with the pigs swilling champers and picking at vol-au-vents stuffed with cavier at one of their reward gigs laughing all the way to the Bank so to speak. :angry:

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snip

snip On the bright side its good to see them try to correct that mis-selling.

only when forced to.

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Comedy Dave says "We must get behind our banks"

Just jail them all you stupid Bullingdon f*cker.

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lloyds. the nations most fµcked bank, thats not actually a bank. its now a tax funded institution, capable of only generating profits for its high flyers while the country pays for the damage they have done with heavy cuts in services, already paid for by an overbearing tax rate.

add any uk bank to that list.

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is this still fallout from HBOS or is the LloydsTSB generated grief too?

Down 8% on the day now, any one out there with the minerals to have a punt on this one bouncing?

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is this still fallout from HBOS or is the LloydsTSB generated grief too?

i remember at the time lloyds being held up as a good bank vs hbos bad bank. Always wondered what lever was pulled to get them to take on hbos instead of saying "get stuffed" like barclays and hsbc did.

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  • 335 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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