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A.steve

Visa Ipo

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From the Guardian's coverage:

The company plans to offer 446.6m shares at between $37 and $42 a share. At the top end of that proposed range the company would raise $18.75bn for the banks - including JP Morgan Chase, Bank of America and Citigroup - which own it.

A strange time for such an IPO I would have thought -- unless they were truly desperate for capital :ph34r:

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From the Guardian's coverage:

A strange time for such an IPO I would have thought -- unless they were truly desperate for capital :ph34r:

Hmmmm lets see have they announced profits above expectations recently?

If they have then the shares will be worth about $10 max,

If they have not then expect the shares to drop on news of write downs.

Either way not worth owning stocks that rely on debts people can just go bankrupt for.

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From the Guardian's coverage:

A strange time for such an IPO I would have thought -- unless they were truly desperate for capital :ph34r:

Interesting. VISA is owned by the banks collectively, and presumably the pay-out will be in proportion.

When it floats and raises $16bn it ought to reduce the market caps of each of the banks proportionately. After all, the business is the same, the income ought to be the same, except that now profits from VISA will go to shareholders in VISA not to shareholders in the banks, thus the bank shares should reduce by the same amount!

I suspect that the vagaries of the stock market will make sure that doesn't happen, and everyone will be convinced they are getting something for free.

It seems to me a way for the major banks to acquire some additional capital without direct recourse to making embarrassing rights issues.

Instead of good news, it ought to be seen as a sign of the vulnerability of the banking system.

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Absolutely. Proles don't get access to alpha, especially from IBs.

What proles do make is a good bigger fool, patsy, mug etc... I expect this is partly to get some easy cash right now from the punters, and secondly to spread the love of VISA crapping itself within 12 months from mass defaults on unsecured lending.

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Absolutely. Proles don't get access to alpha, especially from IBs.

What proles do make is a good bigger fool, patsy, mug etc... I expect this is partly to get some easy cash right now from the punters, and secondly to spread the love of VISA crapping itself within 12 months from mass defaults on unsecured lending.

More on the VISA IPO.

It seems that VISA don't hold any of the risk of the unsecured lending. That sits with the card issuing bank, not the visa system

"Unlike industry Capital Ones (COF) and Discover Cards (DFS), Visa is a card processor, not a lender. That means it takes money from the banks that issue cards and doesn't extend credit. Smart move... It doesn't have to worry about cardholder debt. That concern lies with the banks that issue the cards. "

From

http://seekingalpha.com/article/66714-prof...-in-u-s-history

So they really are selling off the family silver to raise capital. Talk about desperate. This is a symbol of just how bad the banking mess really is becoming.

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http://www.bloomberg.com/apps/news?pid=206...rA&refer=us

Goldfish posted operating losses of $87 million in 2006 and $205 million last year. U.K. credit card companies faced surging defaults after bankruptcy law changes, a reduction to late fees and a housing boom and bust, Sakhrani said.

Visa Inc. and MasterCard Inc. operate networks without making loans to consumers. Visa completed a $17.9 billion initial public offering yesterday, a record for U.S. companies.

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  • 293 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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