Lloyds Banking Share Discussion Threads

[mr.elbee] 11/11/2020 13:58

If pref shares divis are paid first and ordinary were next...with preference out of the way,so to speak,why would the share price collapse?.

You are clever and wise to consider the worst, but I think what you have suggested would fall into the market manipulation area...not for a tiddlypush company...but Lloyds is too large and obvious.

and AHO wants a PROPER legacy.

[alphorn] 11/11/2020 13:55

lef - that was over 60% of his holding. Couldn't he have waited even though the sale was set up back in August. Others - "Biotech execs hunting for COVID-19 vaccines and treatments have raked in more than $1 billion by selling company stock this year".
There are 'probably' plenty of sales to investigate plus of course the millions spent by the governments on all sorts of virus related stuff.
Probably a topic that we would agree on.

[ekuuleus] 11/11/2020 13:54

I'm guessing, but perhaps someone more knowledgeable can correct me; If the preference cumulative share divi's are suspended, do such divi's have to be cleared before an ordinary divi can be paid?

What would that do to the ordinary share price?

If the ordinary share price then collapsed, and there was a takeover attempt, does the pref divi have to be paid for the takeover?

[mr.elbee] 11/11/2020 13:53

falklandi...........everything will be as before because GS say so and will NOT associate themselves with Biden any more.

It will be the usual stock rotation..financials were next before covid.

Your very sensible and legit questions used to be answerable, but not any more..NOTHING reasonable and logical happens any more because this is now a commie country run by a commie in the Bof E and a failed Brown /Blair FSA clone at RBS..all stitched up like a kipper. When the US market picks up our market will too.. remember we have a mad idiot child in charge here...so anything is possible especially if he starts throwing his toys out of the pram ,as is likely

I pity every College economics teacher now...nothing makes sense any more ......it is all hunch and body language..
But that is how things are so we had all better get used to it.

As for a liberal studies/social science education?

be a plumber. much safer and happier and better paid.

[ekuuleus] 11/11/2020 13:51

and what does cumulative mean long term?

No divi for 10 years because someone says so? How about a hundred years? At what point could it go to court if there is even a case?

[newbank] 11/11/2020 13:42

Uty,

Even if nothing transpires it tells the Chancellor and the BoE Gov that some of their decisions are not seen as entirely fair or above Board.

Great that you have an MP that is proactive.

[lefrene] 11/11/2020 13:41

I'm so happy for the CEO of Pfizer, he's just sold $5.6 millions worth of stock on the price spike of their 'cure' announcement. (see Fox business news)

[alphorn] 11/11/2020 13:39

UI - agreed. Goes without saying that Prefs are what they say on the tin re payment of dividends. I still hold some LLPE's btw.

[utyinv] 11/11/2020 13:37

Portside1,

Post 13532 : That reply is standard from the boe I had one weeks ago
It means they run the banks and not the directors at the point of when gov say so

I brought this anomaly to my MP (close to the Chancellor) and this is his reply:

Thank you for your email and I hope you are keeping well.

I was not aware of this loophole or that this was taking place. I will relay it to the Chancellor and ask him to investigate, and will then get back to you when I have a response.

Warm regards

[alphorn] 11/11/2020 13:35

M2 - you might be interested to read about the different approaches that I have put up on my thread. I had dinner last night with a scientist to try and learn a bit more. Max, perhaps without realising it, has part of a question.
I certainly would not call myself an expert btw!

[utyinv] 11/11/2020 13:32

Alph,

Post 13531: Worth adding that many Prefs are cumulative whilst ords are not.

Absolutely right. For those not familiar, non-cumulative pref shares do not roll over to the following year if the bank decides not to pay a divi in that year, ie, it’s lost and cumulative Pref Shares mean that if a bank decides not to pay a divi in that year, that expected divi will roll over to be added to the following year.

However, Lloyds and NatWest have been paying both types of preference shares a divi whilst ordinary shareholders have had their divi held back to pay for possible bad debts.

[alphorn] 11/11/2020 13:31

M2 - not sure of your question.

If you are asking whether that is too quick my answer would be that all(*) medicines must go through the proper channels and review process for efficacy and safety. No short cuts.

* Could be an exception for extremely rare diseases where, in reality, all patients are on the late stage trial. There would be very few patients.

[mr.elbee] 11/11/2020 13:22

great about the vaccine......... one way to get rid of the clinically insane

[minerve 2] 11/11/2020 13:19

Alphorn

Would you agree that 11 months from day 1 for a drug has had to circumnavigate regular channels in order to get where we are?

You are the expert in this field here though, no?

[portside1] 11/11/2020 13:18

You forget these boe employees are not that bright just take the chief Bailey a very uneducated dimwit , he as failed in every were he as been , but in the circle of clowns , family You can not believe a word they say fact

[falklandi] 11/11/2020 13:13

NY Boy,
34.1p (gap) need to be filled before we head
To 40p....DYOR

[minerve 2] 11/11/2020 13:09

Buy a tobacco share, no problems paying dividends there.

[grahamite2] 11/11/2020 13:04

The banks have been a political plaything for quite a while now.

[portside1] 11/11/2020 13:02

That reply is standard from the boe I had one weeks ago It means they run the banks and not the directors at the point of when gov say so

[utyinv] 11/11/2020 13:02

Like many on here who have complained,

I received an e-Mail from the BoE confirming that Pref Shares are exempt from the restriction. Hence this has now been pushed to my local Con MP ( prominent figure) who wasn’t aware of the loophole and has spoken to the Chancellor.

Part of e-Mail response from BoE:

Thank you for your e-mail. I can confirm that the statement and letters that were issued on 31 March 2020 to the large UK banks related to dividends and buybacks on ordinary shares and did not include any other form of capital. The statement and letters can be found here:

hxxps://www.bankofengland.co.uk/prudential-regulation/publication/2020/pra-statement-on-deposit-takers-approach-to-dividend-payments-share-buybacks-and-cash-bonuses

[utyinv] 11/11/2020 13:01

The anomaly regarding pref shares vs ordinary shares has been brought to the Chancellor to investigate with the BoE Gov.

This has been brought to the attention of the Chancellor as it has been pointed out that pref shares are predominantly held by institutions whilst Pensioners and other professionals who invest to supplement income usually invest in ordinary shares.

So the current status of Banks being prevented in paying dividends is penalising PI more than institutions.

Anyway, loophole is being investigated which might bring pressure on the BoE Gov to rectify and remove the draconian embargo