Royal Bank Of Scotland Share Discussion Threads

[leedskier] 15/10/2013 09:49

But the renewed enthusiasm for bricks and mortar has not yet saved estate agents.

---

October 15, 2013, 2:19am
ALMOST half a million British firms are now zombies, only able to stay afloat because interest rates are so low, insolvency practitioners Begbies Traynor estimated yesterday, with estate agents the worst affected.

One in seven firms can barely cover their interest payments and are at risk of going under if rates go up, amounting to an estimated 432,082 firms, the study found.

That is a rise of 16 per cent since 2010, and means 78,415 real estate and property services firms are at risk if interest rates rise.

The next biggest group of zombies is support services businesses, where 25,415 can barely pay the interest on their debts.

"These corporate zombies have clung onto life over the last six years due to a low interest rate environment and increased creditor forbearance, but this benign climate will not continue forever," said Julie Palmer, partner at Begbies Traynor.

"As unemployment falls fast, under Bank of England rules interest rates could rise as early as 2014. Even if they go up by only 0.5 per cent insolvencies could increase sharply."

- See more at:

[leedskier] 15/10/2013 09:47

Assuming house building costs track inflation the real rise is only 1.1% y/y.

[leedskier] 15/10/2013 09:46

October 15, 2013, 9:29am
by Harriet Green
UK house prices have risen by 3.8 per cent in the year to August, exceeding expectations of a 3.6 per cent increase and following August's rise of 3.3 per cent.

- See more at:

[leedskier] 15/10/2013 09:45

Inflation has stayed put at 2.7 per cent in the year to September, despite analysts forecasts of a softening to 2.6 per cent.

The largest contribution to the consumer price index measure came from air fares, which was offset by a downward contribution from petrol and diesel prices.

- See more at:

[leedskier] 15/10/2013 09:38

So assuming there are 6,185.85 million Ordinary shares in issue it appears one has to add a further 5,100 million Ordinary shares if the B shares are converted into Ordinary shares.

[speedy] 15/10/2013 09:37

gc - I've never read the prospectus for the 'B' shares - They pay IIRC, interest
at a fixed rate, and I'd expect that they would be held by the treasury rather
than UKFI. Their disposal would be driven by political matters, probably some
time after HMG had sold off all holdings of common shares.

I'd guess that the 'B' shares do not vote, so the implications for governance of
RBS is much reduced.

There is no connection between the price of 'B' shares and the common shares.

HTH

[leedskier] 15/10/2013 09:35

Market Investments

UKFI manages the Governments investments in The Royal Bank of Scotland and Lloyds Banking Group.

UK FINANCIAL INVESTMENTS LIMITED (UKFI) ANNUAL REPORT AND ACCOUNTS 2011/12 set out details of the holdings as at 31 March 2012.

As at 31 March 2012 the Government held a total of 90.6 billion shares in RBS, including 51.0 billion non-voting B shares and the enhanced dividend access share issued in connection with RBS' participation in the APS. This is equivalent to 66 percent of voting share capital and 82 percent of total share capital.

[leedskier] 15/10/2013 09:33

They are rather like warrants with an option to convert into ordinary shares if not redeemed.

[leedskier] 15/10/2013 09:32

gcom ... Note: Sharecount and market capitalisation shown include consideration of 51 billion B shares issued to the UK Government. 10 B shares convert into 1 ordinary share.

[dope007] 15/10/2013 09:29

Thanks Ramco.

[gcom2] 15/10/2013 09:28

speedy, am I right assume that the B shares cannot be traded on the open market and are held by UKFI? if so, how would they be disposed of after any recovery, I believe their break even is 53p (£530). thanks.

[leedskier] 15/10/2013 09:19

Enjoyed the post script in that link Speedy ...


P.S. it goes without saying that retail investors just can't wait to get back inside this perfectly efficient, unmanipulated, fair, honest and regulated market, in which the same standard are used for everyone: small trader and big. Why else would Eugene "Efficient Market Hypothesis" Fama win the Nobel Prize earlier today?

[speedy] 15/10/2013 09:17

"RBS, based in Edinburgh, unearthed materials that indicated that Mr. Usher participated in the electronic chat room with colleagues at other banks, this person said. RBS, following its policy of alerting regulators when it finds signs of potential misconduct by employees, handed over those chat records involving Mr. Usher to the FCA, this person said. It isn't clear what portion of the documents provided to the FCA related to Mr. Usher."

[ramco] 15/10/2013 09:11

Morning, Dow -2 S&P -0.75.....

Dope only light today if you call 1.25 bn-1.75bn light....;

Thanks Jazza....as you can see gcom much more than you thought....;

[jazza] 15/10/2013 09:06

Ha! I'm mostly filtered by those who wish to deny uncomfortable truths..leedskier - 15 Oct 2013 - 08:13 - 115814 of 115822

[jazza] 15/10/2013 09:03

If all B shares are thrown in, shares amount to 90-odd billion.Ramco - 15 Oct 2013 - 00:48 - 115808 of 115821

[leedskier] 15/10/2013 08:55

News that the highest paid CEO in the FTSE100 -- £16.9m last year -- is moving on leads the Guardian to reflect that there is now only one women heading a blue chip. If of course she was a man the article would have been banging the drum about her excessive pay.

[avatar333] 15/10/2013 08:49

I didn't participate, leedskier.

[leedskier] 15/10/2013 08:44

Good Morning AV. Did you apply for RMG shares and if so have you sold yet?


October 15, 2013, 2:20am
THOUSANDS of individual investors are expected to offload their Royal Mail shares today, as the company completes its listing on the London Stock Exchange.

Shares in the privatised postal service yesterday closed at 471.36p, up 42 per cent on Friday's flotation price. This means people who received the maximum £749.10 allocation are already sitting on a paper profit of around £320 each.

Individuals who bought their Royal Mail shares through leading brokers have been able to sell shares since Friday. But today's start of unconditional trading means people who chose to use the government's official website can now dispose of stock.

Last night a business department spokesman insisted that the government is happy with the website's capabilities, even though strong demand to sell shares has strained sites run by commercial rivals such as Hargreaves Lansdown.

Labour said the continued share price gains show the government substantially undervalued the firm.

- See more at:

[dope007] 15/10/2013 08:44

How much POMO today from Ben and his market distorting helicopter?

[gcom2] 15/10/2013 08:17

I shall take a look!

[leedskier] 15/10/2013 08:13

gcom head over to the global warming BB ... he gets a better argument going over there.

[gcom2] 15/10/2013 08:11

thanks ramco I await jazza's response