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tuggybear

Rbs Is That Skint It Has To Sell 1bn Shares In Tesco

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Royal Bank of Scotland is close to selling its stake in Tesco Personal Finance to the supermarket giant.

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RBS hopes to raise about £1bn from the deal, which is on track for completion in the next few days.

The Edinburgh-headquartered bank has been trying to boost its capital to rebuild its balance sheet. It has raised £12bn through a record rights issue and put various assets up for sale. A sale of train leasing business, Angel Trains, got away successfully.

But RBS has struggled to find buyers for assets such as its insurance business, which includes the Direct Line and Churchill. RBS wanted to raise between £6bn and £7bn from selling its insurance arm. Most analysts think it cannot attract a price of more than £5bn, leading to increasing speculation that Sir Fred Goodwin, RBS's chief executive, will decide to keep the business.

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Every little helps.

Every bit of sh*te poor quality food food helps the whole country turn in to a nation of fat f**ks.

Congratulations to all our leading food retailers your success has coincided with the greatest increase in obesity the world has ever seen.

You should all be proud of yourselves.

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Royal Bank of Scotland is close to selling its stake in Tesco Personal Finance to the supermarket giant.

More on banking

RBS hopes to raise about £1bn from the deal, which is on track for completion in the next few days.

The Edinburgh-headquartered bank has been trying to boost its capital to rebuild its balance sheet. It has raised £12bn through a record rights issue and put various assets up for sale. A sale of train leasing business, Angel Trains, got away successfully.

But RBS has struggled to find buyers for assets such as its insurance business, which includes the Direct Line and Churchill. RBS wanted to raise between £6bn and £7bn from selling its insurance arm. Most analysts think it cannot attract a price of more than £5bn, leading to increasing speculation that Sir Fred Goodwin, RBS's chief executive, will decide to keep the business.

Interesting development. Further supports my view that the existing banks are useless and finished. What do they have going for them?

i) Lots of branches - but most in areas where people don't shop anymore.

ii) A reputation for offering really poor value and ripping people off.

iii) An overhang of huge potential losses from a collapsing housing bubble.

Why can't Tesco just take over banking completely? They have better locations in terms of footfall. They are open evenings. They have a reputation for good value, and most importantly, aren't totally skint.

If this trend continues then we could see all the existing banks with values worth less than their retained short-term assets. In which case their share prices will evaporate, and it will be cheaper to start new banks rather than refinance the old ones through the difficulties.

Tesco, Sainsbury, M&S, Ikea, Shell, BP, all could provide a more plausible banking service than HBOS.

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I would have thought that Tesco is due to suffer in this crunch - hasn't a great deal of their growth been expansion into electrical goods, homewares, etc.

I guess people will cut back on the 'nicer' foods also.

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I would have thought that Tesco is due to suffer in this crunch - hasn't a great deal of their growth been expansion into electrical goods, homewares, etc.

I guess people will cut back on the 'nicer' foods also.

All businesses will suffer, I just think it more profitable to start afresh with a new bank rather than try to prop up useless old banks like HBOS.

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Guest DissipatedYouthIsValuable
Every bit of sh*te poor quality food food helps the whole country turn in to a nation of fat f**ks.

Congratulations to all our leading food retailers your success has coincided with the greatest increase in obesity the world has ever seen.

You should all be proud of yourselves.

Should we lobby against cream cake and crisp aisles because you have no self-control, Tubby?

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Royal Bank of Scotland is close to selling its stake in Tesco Personal Finance to the supermarket giant.

More on banking

RBS hopes to raise about £1bn from the deal, which is on track for completion in the next few days.

The Edinburgh-headquartered bank has been trying to boost its capital to rebuild its balance sheet. It has raised £12bn through a record rights issue and put various assets up for sale. A sale of train leasing business, Angel Trains, got away successfully.

But RBS has struggled to find buyers for assets such as its insurance business, which includes the Direct Line and Churchill. RBS wanted to raise between £6bn and £7bn from selling its insurance arm. Most analysts think it cannot attract a price of more than £5bn, leading to increasing speculation that Sir Fred Goodwin, RBS's chief executive, will decide to keep the business.

Do you think that Tesco had the right to buy it out? With RBS so deep in the mire, Tesco must have found themselves in a nice situation when it come to agreeing a price.

also they wouldn't want to be associated with RBS.

How long before the Queen stops liking the use of "Royal" in the title? Can we expect the name to change formally to RBS plc?

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  • 399 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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