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The Masked Tulip

Big Bank Stakes Change Hands As Rumours Abound

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The market is alive with chatter this morning after disappointing results from HBOS and warnings from the Bank of England’s deputy governor Rachel Lomax and FSA chief exec Hector Sants that the credit crunch has changed the banking sector unalterably.

There are wild and completely unsubstantiated rumours flying round the market of a bank in trouble and speculation that the Bank of England may inject emergency funds into the market. Traders are very sceptical of this talk.

More interestingly, perhaps, big stakes in Royal Bank of Scotland and Lloyds TSB have changed hands this morning, with the Qatari government rumoured to be the buyer. Someone had picked up 50m RBS shares at £4 each and 30m Lloyds TSB shares at £4.67.

The Sunday Telegraph revealed on the weekend that the Qatar Investment Authority was contemplating taking a stake in RBS as part of its plan to invest $15bn (£7.6bn) in under-valued European and US banking stocks.

The bid speculation around Bradford & Bingley and Alliance & Leicester is also refusing to do die down, with Standard Chartered (the Asia-focused bank) being mooted as a possible bidder in another bizarre tale that it going round London's dealing rooms this morning.

HBOS is the biggest faller in the FTSE 100, down 9pc to 643p amid concern about an increase in corporate provisions and its larger than expected credit market exposure.

Bulls will note that the benchmark index is still above 6000 but it is currently down 49.6 at 6037.8. So it looks like the brief bull run of Monday and Tuesday has been stopped by a bit of a reality check. What all these rumours really show is that there is still a lot of uncertanity and fear surrounding the financial sector.

http://blogs.telegraph.co.uk/business/mark...moursabound.htm

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More interestingly, perhaps, big stakes in Royal Bank of Scotland and Lloyds TSB have changed hands this morning, with the Qatari government rumoured to be the buyer.

So, they get a Petro-Dollar bailout for no reason? :lol::lol:

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In today's market, with billions more yet to be 'written down' and brought 'on the balance sheet' - how can any bank's shares be said to be undervalued.

All of them are over valued.

Whilst I'm sure there's more horrors to emerge, drops of 40-50% in blue chip names means there's going to be value out there...

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Whilst I'm sure there's more horrors to emerge, drops of 40-50% in blue chip names means there's going to be value out there...

Like the value in Enron............

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So, they get a Petro-Dollar bailout for no reason? :lol::lol:

"changed hands" implies that someone not being RBS sold. Not dilutionary and not a bailout as far as I can tell.

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  • 296 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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