Close Brothers Share Discussion Threads

[timmy11] 28/10/2024 13:11

what will they attack next, sofa sales,

also will car sales drop because of this ruling,

[jonnybig] 28/10/2024 13:07

Surely cbg must have some idea what the worst case scenario will be. Doesn't look good when one of the directors sold a couple of weeks ago.

spud

[diku] 28/10/2024 13:05

PPI mark2...PPI run it's course so create another scandal...create money so it flows back into the economy...

[tomboyb] 28/10/2024 13:01

Lloyds may be liable for up to £2.5 billion wrote Jonathan Pierce, an analyst at Jefferies International: “It increases the risk of our worst-case scenario.”

That is the worst case scenario for Lloyds -

I can't see anywhere where it says Close had 50% of the loan book of Lloyds -

[jonnybig] 28/10/2024 12:50

I agree, Chris this share could very well be suspended until it's known with some degree of accuracy what the liability might be because this has become farcical.

spud

[tomboyb] 28/10/2024 12:47

"Close has loan book 50% of Lloyds, then it's 1.5bn for Close"

Where is this value from? -

[chriss911911] 28/10/2024 12:29

Analysts suggest, Lloyds might have 3bn exposure on FCA issue to 2020, and and therefore no future exposure post 2020, since Close has loan book 50% of Lloyds, then it's 1.5bn for Close to pay a bank just 3.4% of the size of Lloyds, so more than 3x what they have set aside so far, to say nothing about how they resolve tier 1, it's surely, bye bye business they cannot function as a bank. However, they cannot be sure that is enough, since they now suspend writing more business, so liability beyond 2020, as well, the maths are something else, hence the falls could easily persist, no idea what the bottom looks like when cash is thrown into bottomless pit, surely a suspension will follow soon.

[karv1] 28/10/2024 12:07

I personally think 250m is a fantasy even CBG do not believe that number and that's before the ruling.
Everyone has to do there own calculations on what numbers to include or not and come to your own conclusions.

[datait] 28/10/2024 12:02

Buy on fear 🚀 🚀 🚀

[tomboyb] 28/10/2024 12:01

So RBC thinks Close is potentially liable up to £250million -

[sbb1x] 28/10/2024 11:56

UK Banks dropping again today on car loan ruling. Lloyds bottom of the main index at -3% and Barclays -2%. Exposed Close brother smashed -12%. Citigroup: - industry-wide charge estimate of £9 billion may double.RBC: - "consensus has been too optimistic on this issue,"RBC base-case payouts:- Close Brothers: £250m (consensus £190m)- Lloyds: £2.5b (consensus £1.2b)- BOI: £630m (consensus £100m)- Barclays: £350m (consensus unknown)- Santander: £1.1b (consensus unknown)The scope of the issue could be broader than the 2007-2020 window already known about.For Lloyds, Morgan Stanley says the key risk is that it's determined that the bank was not supposed to pay fees at all to car dealers, and has to pay them back in full. This would double the potential liability to a range of £1.4b to £3b, the equivalent to 3% of tangible net asset value

[jonnybig] 28/10/2024 11:50

I think it's not about how much they charged, just that they're weren't being transparent with it. In this day and age where you can get cheaper deals on comparison sites, this could now be the nail in the coffin for the defunct broker. Wouldn't touch cbg with a barge pole, very high risk with much more pain to come imo.

spud

[karv1] 28/10/2024 11:39

CBG is a tiny slice of cake but it is a big percentage of there own business this is why the market effect is so much greater for CBG.

[123trev] 28/10/2024 11:34

Normally I would be looking at another entry point here shortly for the gamble because that’s what it is. However starting to think that investing in UK stocks is just a ridiculous undertaking now. The costs assuming all the risk then getting clobbered if your successful has now become untenable imo together with this compensation culture that can hit your investments hard and seemingly every company is fair game. The budget obviously will put the icing on the cake I’m sure and if you manage to negotiate all that you have that future blessing care home fees,ffs best just spend spend spend enjoying yourself.

[tomboyb] 28/10/2024 11:32

I've know Close Brothers in the past and historically bought the stock -

It is a multi-disciplinary company however I've not kept up to date certainly in terms of when and how they decided to go into car finance -

What % of the car finance market does Close own? -

[cirlbunting1] 28/10/2024 11:16

If the supreme court doesnt overturn this foolishness - I suspect help2buy, student loans or any other finance purchases will eventually get investigated. From what ive gathered.. roughly 30-35% of cases get overturned in the supreme courts (not great odds). Cant believe shareholders are suffering due to the financial illiteracy of customers (if you didnt like the finance terms at the time, then why the hell did you agree to them). Acting like they couldnt shop around. Absolute farce.

[stoopid] 28/10/2024 10:58

Thanks for this, but nothing new really, just reiterating stuff from the weekend.

[karv1] 28/10/2024 10:46

100p is a very extreme view this would value the company at around 120m if this was to happen, I would suspect the market would be expecting a very large share right issue diluting the company by 99% aka worthless.

[tomboyb] 28/10/2024 10:45

hxxps://www.motorfinanceonline.com/news/close-brothers-and-firstrand-to-appeal-uk-court-ruling-on-motor-finance-disclosure-duties/?cf-view

New article Just out -

Close Brothers and FirstRand to appeal UK court ruling on motor finance disclosure duties
Court of Appeal sets new fiduciary duty standard for broker disclosures; ruling could spark significant industry-wide liabilities

Alejandro Gonzalez
October 28, 2024

[blackhorse23] 28/10/2024 10:41

They can not pay any dividends at least another 2 years as mentioned at recent RNS. All money will go to claim companies. If NO DIVIDENDS share price WILL CONTINUE DROP , share price hold in past only for dividends