Lloyds Banking Share Discussion Threads

[geckotheglorious] 27/8/2020 09:22

But I doubt that banks have realised the magnitude of the current economic problems. Central banks clearly see the risks. Otherwise they wouldn’t have panicked back in August 2019.

WILL DEUTSCHE BANK CAUSE SYSTEMIC COLLAPSE?

Just take Deutsche Bank (DB) which is the worst of the lot. They have total assets of €1.3t and equity of €62b. The equity is 4.7% of their total assets. So loan losses of 5% would wipe out their capital. I would be surprised if the coming loan losses would be less than 25% and probably a lot more. And if we add the gross derivatives exposure of $50t, a 0.1% loss would be enough to bankrupt DB.
Now people will argue that gross exposure should be reduced to a much lower net figure. The problem in a crisis is that gross exposure remains gross when counterparties fail.

So in the next crisis, DB is very unlikely to survive. As one of the biggest banks in the world, DB will have positions with all major banks worldwide. So a fall of DB would most likely lead to systemic collapse with the whole system imploding.


"Eye opening..50 trillion in derivatives. And very true, exposure is gross if
counterparties netting off with go bust!!!!"

[diku] 27/8/2020 08:57

In hindsight...Lloy lagged behind in comparison to Barc technical bounce in % terms...minimum 42p...too many shares in issue and all you get is 1 - 2p churning...once or twice a year you get those technical up moves...rest of the time it is dead money...



Pinemartin926 Aug '20 - 16:03 - 11716 of 11720
0 0 0
That 38p spike a couple of months ago would have been the perfect time to sell

[maxk] 27/8/2020 08:27

Things not working so well with monetary policy?


No problem, simply move the goalposts...

[utrickytrees] 27/8/2020 08:25

BAN Sausages.

[minerve 2] 26/8/2020 22:45

I don't understand all this disappointment. The government has surely lived up to informed expectations. It wasn't chosen for its competence. It was chosen for its commitment to the noble cause of Brexit (also known as national impoverishment).

Martin Wolf, FT

[freddie ferret] 26/8/2020 21:57

House price related.

[freddie ferret] 26/8/2020 21:49

I am not sure anybody can tell the banks what to do in this matter. It is common for banks to "help" distressed borrowers.
The banks will not want to precipitate a house price crash.
Bear in mind furlow is still intended to end in October. (I have my doubts).

[maxk] 26/8/2020 19:16

We're about to find out who's been skinny dipping when the tide goes out..




Banks told to end mortgage holidays

Struggling homeowners will no longer be able to demand a break from payments after October 31 following watchdog's ruling

By
Lucy Burton
and
Russell Lynch,
ECONOMICS EDITOR
26 August 2020 • 6:42pm


Millions could face a brutal autumn after the City watchdog announced an end to mortgage holidays at the same time as the taxpayer-funded furlough scheme is axed....

[jl5006] 26/8/2020 19:11

Come on Tricky - the Swiss love cheese - emmental - like gouda and Edam also.
Cheese - not like Slilton. I was in paris and this Swiss said - we could try the cheese restaurant in Les Halles.
Comment in Italy was that they were the poorest of the European lovers.
They are absolutely boring - I worked with one for 7 years.
Should some nerd want to go and live there - let him be - it is no fun there.

[xxxxxy] 26/8/2020 19:04

Banks told to end mortgage holidays Struggling homeowners will no longer be able to demand a break from payments after October 31 following watchdog's rulingByLucy Burton and Russell Lynch, ECONOMICS EDITOR26 August 2020 • 6:42pm.. Daily Telegraph

[xxxxxy] 26/8/2020 17:46

The EUSSR is nothing without the Great UK.No DealWTO

[xxxxxy] 26/8/2020 17:46

China 'bullied' HSBC into blocking accounts of pro-democracy supporters, Pompeo claimsSecretary of State Mike Pompeo says the US is 'dismayed' by the bank's actions... Daily Telegraph.Hong Kong welcome

[geckotheglorious] 26/8/2020 16:49

End of furlough is October isnt it? Beginning or end?
Lost track to be honest.

[mikemichael2] 26/8/2020 16:47

September? Well, more job losses,end of furlough,big spike in corona.

[pal44] 26/8/2020 16:11

Should have sold at 72p ... bad investment here. Let us see what September brings ...

[pinemartin9] 26/8/2020 16:03

That 38p spike a couple of months ago would have been the perfect time to sell

[alphorn] 26/8/2020 15:00

Meanwhile for those few non Express readers on here who actually invest anything GBP is moving nicely in the right direction. May it continue despite the No Dealers.

[alphorn] 26/8/2020 14:34

k38 - as usual believing all things Express. Follow the Russians; just where do they passport shop?

Anyway, these are small numbers compared to the Hong Kongers and no doubt the Australians (etc) and their growing Far Eastern populations.