Royal Bank Of Scotland Share Discussion Threads

[leedskier] 20/10/2013 11:37

Hi cfc1, well all things being equal, which they rarely are, the markets should rise into the earnings reporting season. If there is a fly in the ointment it is the cash grab by the US Government from Jp Morgan ... see my earlier post. That was in respect of mis-sold mortgages. Libor is still in the melting pot ;

[cfc1] 20/10/2013 11:20

Leeds - no surprises from the Chancellor. So I expect the Ulster bank to take all the toxic and bad assets...so could hit that£4 but you never know with markets.
How do you see the next 2 weeks (crystal ball etc) for the SP?

[leedskier] 20/10/2013 10:48

In the GDP table, Britain ranks third after Germany and France in the EU, let alone Globally. If Britain leaves the EU., its GDP is unlikely to improve.

[djgeru] 20/10/2013 10:19

What kind of drugs is Osborne into? ... :


"Britain is no longer great, is defeatist and unambitious and needs to be more like China, the Chancellor has said.


In an astonishing trashing of his country's attitudes, George Osborne added that Britain had lost its "can do" approach and had been relegated to the status of a "second-rate power".

[djgeru] 20/10/2013 08:32

Painful steps to deliver the RBS we need

The problems facing Mr Osborne as he decides what to do are twofold


Is it better to do the right thing too late, or to leave a past mistake uncorrected so as not to risk losing hard-won stability?


This is the question George Osborne has to wrestle with for the next couple of weeks as he weighs up whether to order a break-up of Royal Bank of Scotland, or a less radical restructuring.


Most observers admit with hindsight that the rushed bail-out and partial nationalisation of RBS was probably not the best way to have rescued the bank. At a cost of £45.5bn it was not the cheapest move, either.


The Chancellor has been clear he does not blame those in charge at the time, given the blizzard of storms that were hitting the UK banking system in the autumn of 2008.


However, not blaming is not the same as not regretting and regret has been gnawing away at some members of Britain's financial establishment.

Former Bank of England Governor Lord King of Lothbury was one of the most vocal critics of the RBS situation and spent much of his final months in office lobbying for a reappraisal of the bank's position.

With the support of the Parliamentary Commission on Banking Standards, Lord King's wishes were translated into a direct call for action that proved irresistible for Mr Osborne, who ordered a review into the possibility of splitting RBS into a "good bank" and a "bad bank".

The problems facing Mr Osborne as he decides what to do are twofold. First, having ordered a review, he knows he must do something more than merely tweak the bank's structure, thus risking several months of upset at what is still one of the country's largest and most important banks.

Secondly, having decided that something radical is needed, he must persuade the bank's minority investors to back his plans. If his decision is to create a new state-backed bad bank and transfer assets, the Government would actually be barred from voting its shares under UK corporate governance rules.

This means that any separation will have to be done in such a way as to offer enough of an incentive to existing investors in RBS that they feel any changes, however disruptive in the short term, will ultimately enhance the value of the bank.

Though this may seem a difficult balancing act, it is far from impossible. As analysts at RBS's own broker, UBS, pointed out in a recent note, stripped of all its toxic assets, the bank would likely be rated at a higher valuation than it is today.

To achieve this the authorities must be bold and this means delivering a solution that deals once and for all with any lingering issues they and the market have with the bank. Simply taking the bank's £54bn of non-core assets and placing them into a separate holding company is not the sort of change that is likely to achieve this aim.

Rather, RBS must take some painful steps. For instance, the bank's Irish arm, Ulster Bank, should probably be placed in its entirety into the bad bank, along with its US banking operations.

If these radical actions are taken then RBS may finally be on the road to becoming the "good bank" the country needs.

[djgeru] 19/10/2013 11:03

Jazza ... They,re even worse I,d say

[jazza] 19/10/2013 09:13

Translation:Osborne wants RBS to pump the UK housing market in order to win the 2015 election.Politicians eh? As bad as the bankers..DJgeru - 19 Oct 2013 - 08:48 - 116001 of 116002

[djgeru] 19/10/2013 08:52

Up we go ... although will remain VERY volatile from now on ...

[djgeru] 19/10/2013 08:48

RBS 'bad bank' due in weeks, says George Osborne

Chancellor discloses imminent break-up of bailed-out Royal Bank of Scotland


The Royal Bank of Scotland is to be broken up by the Government into a "good bank" and a "bad bank" with the go-ahead to be given within the next few weeks, the Chancellor has disclosed.


George Osborne said the future of RBS was his "priority for the next two or three weeks" and there was no chance the bank could be left in its current form.


"That's the top of my in-tray," Mr Osborne told The Telegraph, as he also disclosed that while a sale of the state's 81pc holding in RBS would now not happen until after the next general election, the Government was preparing to sell Lloyds Banking Group shares to the public.


"We are now looking actively at a retail offer for the next tranche of Lloyds shares," he said. "With RBS we are not, at the moment, close to the stage of being able to sell RBS shares."


He added: "RBS was a much more complex bank. To be fair to management past and present it was a bank that was in a lot more trouble. The clean-up job has been more difficult but we have got to make these decisions now about the future for RBS."
The Government is understood to be weighing up three potential models for dealing with the "toxic assets" of RBS. The first would to set up a bad bank inside RBS that would be run by an independent team. Alternatively, the advisers have suggested copying the model used by Swiss bank UBS which also created a separate bad bank, but with the support of the country's central bank. A third option would be to establish an entirely separate taxpayer-backed bad bank into which RBS's toxic assets could be placed, along the lines of the method used by the Swedish government in the 1990s.

Advisers from Rothschild have been preparing a report on what to do with RBS, while US asset manager BlackRock, which was hired at the same time to analyse RBS's portfolio, has identified between £50bn and £60bn of assets that would be placed into any bad bank.

This figure is in line with the £54bn of assets currently attributed to RBS's "non-core" division, which has been responsible for reducing the bank's exposure to problem loans and other bad assets.

Mr Osborne said: "We are looking at the case for a bad bank and if not a bad bank what is the alternative strategy that really gets on top of the problems in that bank and goes on being what I want it to be which is a bank supporting the British economy."

Ross McEwan, who took over from Stephen Hester as chief executive of RBS at the start of the month, sent a note to staff on Friday in a bid to reassure them about the future of the bank.

"The future of this company will not be about whether we operate in particular areas or where our problem assets sit. The future of this company is about how good a job we do for our customers, including those who are having difficulty repaying their loans. And it will be about how well we live up to all our responsibilities, particularly those we have to the UK," wrote Mr McEwan.

The break-up of RBS was among the recommendations of the final report of the Parliamentary Commission on Banking Standards chaired by Conservative MP Andrew Tyrie. The report stated: "The current state of RBS creates problems for banking competition and for the British economy. Further restructuring may well be needed. The Government may need to be bold."

Under pressure from the Mr Osborne, RBS has already embarked on a series of restructuring programmes aimed at turning the lender into a more UK-focused bank.

[smurfy2001] 18/10/2013 23:44

This is a STRONG BUY. I re-iterate this is a STRONG BUY.

This will easily be 500p+ by 2015.

Why?

Assetts could be dumped into a bad bank.

This will free the shackles and allow RBS to be privatized by 2015 election.

I am adding RBS and LLOY on weakness. LLOY will sell shares to the public Royal Mail style, l expect the shares to do extremely well.

[leedskier] 18/10/2013 21:34

For you Dope ;

An investor paid $6.7 million for a trade that will pay off if the Chicago Board Options Exchange Volatility Index more than doubles by February.

[speedy] 18/10/2013 17:03

It's 50:50 on whether to celebrate or cry ...



I ought to do something to mark their historic achievement of +$100Bn in one
month ... and the forthcoming attempt by the FED to convince that the "Taper"
is gonna happen ... YMMV.

[djgeru] 18/10/2013 15:25

Stuck in the 370s or should I say consolidating around the 370p area? It seems like Barclays Libor issues are dragging RBS back for the moment ...

[dope007] 18/10/2013 13:48

Maybe time to start going long on the VIX again as reality is nowhere near fantasy stock and bond prices. The fly in the ointment is FED wrecklesness, and pathetic politicians. However even they will soon run out of space and time with the mess they are creating

[leedskier] 18/10/2013 12:38

ht, quite ... thanks.

[leedskier] 18/10/2013 12:08

add:

FTSE100 actually up 0.4% now.

[highland terrier] 18/10/2013 12:07

Barclays, Citigroup, RBS FX Messages Said to Be Examined

[leedskier] 18/10/2013 12:06

Well I just read a 'wire' which suggests it is worries over 'LIBOR' in the USA.

But whether that is spin or substance I cannot help.

[leedskier] 18/10/2013 12:04

cfc1, well yesterday the market trashed miners today the market is luving them up. To ensure that the FTSE100 does not rise more than a low fraction of 1% banks have to fall.

There may be some rumour/sentiment bearing directly on RBS ... but I have not read it yet.

I will have a look and report back ;

[cfc1] 18/10/2013 12:00

why on earth are RBS down 8.3????

[dope007] 18/10/2013 11:47

The IMF in league with central banks have created a debt explosion. this was all done by design to enslave countries via debt.

Debt slavery is the number 1 aim and outcome of wars

[sharejock] 18/10/2013 11:42

Please help!As you guys are incredibly intelligent and well informed perhaps you could help me?I've been asked the question, "What good has been done or come about as a result of the IMF?"Any and all thoughts gratefully received.