Thursday, June 3, 2010

Who will buy? lol

UK must sell bailed-out banks to save AAA rating

Politicians should be less fixated on selling the stakes for more than the price they were bought at, according to the report, which says a quick sale could help steady the UK's finances. JP Morgan Cazenove analysts estimate the cost of funding the state's holdings in Lloyds and RBS at £3.2bn a year, and recommend the Government stave off a ratings downgrade by selling the stakes quickly.

Posted by mark @ 11:31 AM (1518 views)
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4 thoughts on “Who will buy? lol

  • mark wadsworth says:

    The shares that we taxpayers own in RBS and Lloyds are the least of our worries (£40 billion we spent on them, perhaps? if it’s gone it’s gone)

    It’s the £300 or £400 billion taxpayer funded/backed/underwritten loan guarantee schemes etc which ought to be withdrawn/repaid etc. There was an agreed schedule for this, but the chances are the Lib-Cons will keep extending the deadline for repayment. Sure, that might see the value of our shares fall to £zero, so what? Continuing to prop up banks with a £400 billion loan in order to preserve the value of a £40 billion investment looks like “throwing good money after bad” to me.

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  • JP Morgan has just been stung badly by the FSA. They have an axe to grind – the axe is their understanding of the UK’s parlous finances. The grind is this article. That does not however mean that it lacks credibility.

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  • Erm, if they are in such a parlous state that they are a threat to a large developed country’s AAA rating, then who would buy them?

    Or does JP and its brethren see an opportunity to make a killing?

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  • Seeing as I work at RBS, the most likely outcome for RBS is they will split up the bank into it’s Retail and City portions. I see Deutsche Bank as a likely buyer for at least some parts of the nationalised UK banks like RBS, as they haven’t yet bought any crunched assets.

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