Royal Bank Of Scotland Share Discussion Threads

[maxk] 13/7/2017 10:09

Another view..

[leedskier] 13/7/2017 09:05

Morse's* warning -- reported in this morning's Telegraph -- that the Government could come apart like a chocolate orange over brexit, was a dog whistle to the electorate rather than sitting members.

The UK needs a leader with the fortitude of Churchill and a deputy leader with the intellectual firepower of Attlee.

Theresa and her deputy fail on both counts.

It is becoming increasingly clear that a 'hard brexit' where the UK simply walks away. Bills unpaid, all agreements cancelled, all EU citizens resident in the UK treated as aliens without any rights, is becoming probable!

Why?

Because EU membership, has over 40 years, become part of the DNA of UK.

It permeates into every fibre of the economy and the rules we apply. Unpicking all of that is just too complex a task not only for the politicians, but for the civil servants..

Since Theresa, or whomever replaces her, will NEVER get a hard brexit through Parliament, she or her replacement may just spin it out, holding talks about talks, until the exit date of March 2019. The consequences of the UK simply being timed out, do not bear thinking about.

At some point soon the politicians will have to square-up to the enormity of the task ahead and explain to the electorate the difference between what they voted for and what is possible and practical.

As Theresa has lost all credibility that difficult task in real politik has to fall on broader shoulders.

The only question now, is whose shoulders!

-----
*Sir Amyas Charles Edward Morse, KCB, is a British auditor who is the current Comptroller and Auditor General of the National Audit Office, an independent Parliamentary body.

Morse led the Coopers and Lybrand practice in Scotland before moving to London to manage the London City Office, subsequently becoming executive partner of Coopers and Lybrand UK. He was a global managing partner at Price Waterhouse Coopers before he was named Comptroller and Auditor General, succeeding Tim Burr.

[buywell3] 13/7/2017 08:14

LONDON -- Royal Bank of Scotland Group PLC on Wednesday agreed to pay $5.5 billion to the Federal Housing Finance Agency to settle a probe into its sale of toxic mortgage-backed securities in the run up to the financial crisis.


More pain could still be ahead. RBS had set aside $8.3 billion to cover a range of allegations linked to its role in packaging and selling on subprime mortgages in the lead up to the financial crisis. The bank still faces probes from several U.S. agencies including criminal and civil investigations by the U.S. Department of Justice. RBS warned Wednesday that "further substantial provisions and costs may be recognized...depending upon the final outcomes." Analysts at Jefferies estimate RBS will set aside a further $2.5 billion by the end of the year to cover future Justice Department settlements. So far, the bank hasn't had meaningful discussions with the Justice Department over any settlement, said RBS Chief Financial Officer Ewen Stevenson.

That could slow the grinding process of returning RBS to private hands. U.K. Treasury officials have said they would not sell the government's 71% stake until they have clarity on the size of the fines RBS may face.

[stockmuncherpr0] 12/7/2017 21:56

Hey Smurfy2001, how are your mates mondaytuesday and TradeJunkie2 ?

:@)

[smurfy2001] 12/7/2017 19:13

It is not clear how much of the remaining £3bn of provisions is in preparation for any settlement with the DoJ, which McEwan has said he wants to resolve by the end of this year. “As the year progresses it gets increasingly challenging [to solve this by the end of the year],” Ewen Stevenson, finance director of RBS, told analysts.

McEwan said the settlement with the FHFA was a “good step forward” but did not solve all the barriers facing the bank’s ability to start paying dividends for the first time in a decade.

The bank also needs to make a profit – McEwan has already warned that the bank is course to report 10 years of consecutive annual losses since its £45bn bailout – and pass its annual stress test from the Bank of England. It also needs the Treasury to reach a deal with Brussels over alternatives to the sale of 300 branches – which were to be known as Williams & Glyn – to meet conditions imposed by the European commission at the time of its bailout.

“Today’s settlement removes a significant obstacle that was previously blocking the resumption of dividends,” said analysts at Bernstein. “The W&G settlement with the European commission remains the other remaining significant obstacle and, once resolved, will set RBS up for resumption of the dividend from next year.”

Days before Christmas, the DoJ extracted $12.5bn in settlements from Deutsche Bank and Credit Suisse over RMBS but it is taking legal action against Barclays, which has refused to settle.

[smurfy2001] 12/7/2017 16:58

I'm sure divi will happen in 2018 but lets get this big DoJ fine out of the way.

[cfc1] 12/7/2017 16:50

well trump hasn't replaced the 42 people he fired in the DoJ!! RBS think they know who they will be but not official.

We should get W&G news v soon - apparently EU is signing off on it....the investor bloke I spoke to was a little too open or perhaps just giving out news that McEwan talked about today. Then we have apparently good numbers out on aug 4....

BUT we sill need the DoJ fine and we still need a divi AND gov't sell off

[chinese investor] 12/7/2017 16:25

I'm having a quiet giggle to myself today !

[smurfy2001] 12/7/2017 16:07

Well unless they settle with the DoJ this year i'm seeing not my 333p average. But l do see good things happening in 2018. 400p should be easy with 1bn profit per quarter. Ever an optimist.

[avatar333] 12/7/2017 16:03

Good old gcom2.

;

[gcom2] 12/7/2017 15:58

they spiked this up after todays news to 265p letting punters buy , lot of crooks

[gcom2] 12/7/2017 15:57

i'm out until the DOJ is done and dusted cfc

[cfc1] 12/7/2017 15:53

smrfy/gcm2....sell your shares and go buy Tesco... this is expected news and RBS getting there. If people selling here then ^&%$££^&&* otherwise trading the share price on the news and getting people like you to sell....

[avatar333] 12/7/2017 15:48

beep beep whirr

;

[smurfy2001] 12/7/2017 15:45

Legs starting to wobble. Back down to 230p?

[sux_2bu] 12/7/2017 15:32

Problem with these fines are it won't punish the bank, it punishes the savers and s/holders.

Once the dust settles i'll be interested in a swing trade.

[tfergi] 12/7/2017 15:26

DOJ fine is still going to be the one that makes the real difference.Time will tell. If it matches this one then it will be great news.

[smurfy2001] 12/7/2017 14:45

Yet another grim day for RBS shareholders. Hopefully the Department of Justice go easy and the total of the large fines are below provisioned.

[smurfy2001] 12/7/2017 14:39

Royal Bank of Scotland has agreed a £3.65bn ($4.75bn) settlement for its role in the sale of risky mortgage products in the US before the financial crisis.
The settlement is with the US Federal Housing Finance Agency, which oversees the secondary mortgage market.

A separate deal with the Department of Justice is expected later this year.
The boss of RBS said the fine was a "stark" reminder of what happened to the bank before the financial crisis.

RBS has set aside a total of £6.7bn ($8.6bn) as a provision for both fines.
The bank's chief executive Ross McEwan, said: "Today's announcement is an important step forward in resolving one of the most significant legacy matters facing RBS.
"This settlement is a stark reminder of what happened to this bank before the financial crisis, and the heavy price paid for its pursuit of global ambitions."

Analysis: Simon Jack, BBC Business Editor

Although the settlement is enormous - it is not unexpected and RBS had already set aside £6.7 billion to settle their final bill. This is not quite it.
A separate settlement with the Department of Justice is expected later this year which could match or exceed today's settlement.

RBS today topped up the kitty for penalty payments by another £151m which will hit this year's earnings.

Despite its core business producing reasonable profits, fines for historical conduct has meant RBS has lost money every year since a £45bn government bailout in 2008.
RBS chief executive Ross McEwan has said he is hopeful that by the end of this year, the legacy issues that have dogged this bank will be behind it and the government will be able to start selling chunks of the bank back to the private sector.

The shares are currently worth around half the price the government paid for them but Philip Hammond has indicated that the government may be prepared to start selling shares at a loss.

The government still owns 72% of RBS.

The fine is over RBS's role in the mis-selling of sub-prime mortgage products in the run up to the financial crisis.

Several other banks, including Deutsche Bank, have already settled with US regulators.

[smurfy2001] 12/7/2017 14:35

Ongoing Legacy Inquiries and Litigation

RBS is one of 17 financial institutions to have settled RMBS claims filed by
FHFA. Following this settlement, RBS's unresolved RMBS litigation matters
involve the issuance of less than US $1 billion of RMBS issued primarily from
2005 to 2007, assuming court approval of an agreed and provided for
settlement. This unresolved amount does not include the FHFA case involving
RMBS issued by Nomura, which RBS estimates its net exposure as approximately
US $383 million (£295 million) and intends to pursue indemnification for.
This net exposure was also included within RMBS related provisions as at Q1
2017.

As previously disclosed, RBS continues to cooperate with RMBS related
investigations and proceedings (both formal and informal) by federal and state
governmental law enforcement and other agencies including the US Department of
Justice ("DOJ") and various other members of the RMBS Working Group of the US
Financial Fraud Enforcement Task Force. The duration and outcome of these
investigations, including in particular the DOJ's civil and criminal
investigations, and other RMBS litigation matters remain uncertain, including
in respect of whether settlements for all or any of such matters may be
reached.

RBS is not making any other adjustments to existing provisions relating to
RMBS matters as a result of today's settlement but continues to advise that
further substantial provisions and costs may be recognised and, depending
upon the final outcomes, other adverse consequences may occur. Please see
RBS's 2016 Annual Report and Accounts for further information on these
outstanding investigations and litigation matters.

Investor call

Ewen Stevenson (Chief Financial Officer) will host a conference call for
investors and analysts at 14.30 BST. A replay of the call will be made
available shortly afterwards. Only items relating to the above announcement
will be discussed on the call; there will be no references and discussion
relating to other matters and the Q2 2017 results.

[smurfy2001] 12/7/2017 14:34

Financial Impact of the FHFA settlement

Under the settlement, RBS will pay FHFA US$5.5 billion (£4.2 billion), of
which US$754 million (£581 million) will be reimbursed to RBS under
indemnification agreements with third parties.

The cost to RBS (net of the indemnity mentioned above) of US$4.75 billion
(£3.65 billion) is largely covered by existing provisions. An incremental
charge of US$196 million (£151 million) will be recorded in the RBS Q2 2017
results which will be published on 4 August 2017.

As at end Q1 2017, RBS held a provision of US$8.3 billion (£6.6 billion)
against RMBS, of which $4.55 billion (£3.6 billion) related to FHFA and the
remainder principally relates to a number of the matters described below.