Royal Bank Of Scotland Share Discussion Threads

[chinese investor] 27/10/2017 13:08

bar,
So it's gone to arbitration - things should move quickly now !

[barmiddleton] 27/10/2017 13:00

Me too, seems like the AG has been told to take a back seat which I can only applaud. Whether they will comply is of course another matter!

[chinese investor] 27/10/2017 12:43

I've just received an email from Signature with the 3 letters attached.

[smurfy2001] 27/10/2017 12:18

More info so with RBS it might be say 6bn of that 12bn figure that was mentioned for example:

Deutsche Bank said it would pay $7.2 billion to the U.S. Department of Justice, related to its issuance and underwriting of residential mortgage-backed securities (RMBS) and other activities during 2005 to 2007.

The agreement is less than the $14 billion the United States asked Deutsche Bank to pay in September to settle the claims.

That negotiating figure caused Deutsche Bank's stock to plummet and raised questions about the bank's stability and the risks it poses to the financial system.

Under the settlement, Deutsche Bank will pay a civil monetary penalty of $3.1 billion and provide $4.1 billion in consumer relief in the United States.

Source:

It seems the DoJ try a high figure (as per Deutsche Bank) which l presume RBS will then negotiate down and finally settle or if they can't do what Barclays are doing and take it to court.

[scemer] 27/10/2017 12:09

I think you will find deutch agreed 50% of the doj offer of which 50% there about was cash 3.1bil dollars

[cfc1] 27/10/2017 11:35

gcom2....its not all cash....I dont understand the mechanics of such transactions....but Deutsche didnt may their fine all in cash either....a non exec at RBS explained it at a recent event and I didnt understand what she was talking about.

Leeds might be able to explain it??

[gcom2] 27/10/2017 11:20

so where does the other 6bn come from to pay the americans... next 3 years profits?

[leedskier] 27/10/2017 11:20

It looks like the market analysts have examined it and pronounced it fit for active duty.

[smurfy2001] 27/10/2017 10:32

Staggering share price performance welcome to the party.

[cfc1] 27/10/2017 09:52

Leeds - exactly ....we need DoJ fine and giv't selloff and divi returned....then bang and lift off..$12B ia NOT all cash btw - if that is the fine extent...and they are fighting it hard....so once done we move up

[leedskier] 27/10/2017 09:33

Pillon, I steer well clear of offering investment advice. Experience teaches that things can go pear shaped in London markets and then views expressed can be thrown back in one's face.

There is no doubt however that RBS (trading at 28p in old money) is trading at the low end of its range since (say) 2009.

Quite why that is the case probably has more to do with the way the market selects shares than any intrinsic reason.

[smurfy2001] 27/10/2017 09:30

Well this is doing well lol

[paa65] 27/10/2017 09:25

Todays gap up being closed before it moves north again. Expecting over 290 again today

[smurfy2001] 27/10/2017 09:11

The real negative is the outstanding DoJ fine and l wonder why RBS didn't take any provisions this quarter are they expecting the fine to be covered?

[pillion] 27/10/2017 09:06

leedskier; good comment
Do you consider RBS a decent investment at todays price ?

[leedskier] 27/10/2017 09:00

The money for that is ring fenced, I think, and like a one off rise in inflation, will be quickly forgotten.

The real issue, it seems to me, is looking beyond the DOJ fine, given that interest rates in the UK are set to rise, and the banks greater focus on core banking activities, it is moving closer to LLOY's model and moving further from BARC's model.

Investment banking is risky and largely unprofitable in Europe because bond prices are static so fixed income profits are very low.

Add to which a downturn in the markets, should it ever come, will not impact retail banking to the same extent.

The question are (1) will RBS be able to resume any form of dividend payments next year; (2) when will the Treasury begin to sell down its shareholding.

[smurfy2001] 27/10/2017 08:44

However, the bank said it could not be sure of a full-year profit, since it was hoping to settle a dispute with the US Department of Justice.
The cost of that settlement is likely to push RBS into a loss.

On Thursday, the bank settled a separate US criminal investigation that accused its traders of lying to clients over investments between 2008 and 2013.

The Department of Justice (DoJ) said RBS would pay $44m (£33.4m) under the non-prosecution agreement.
RBS said it had self-reported that issue to the US authorities and was pleased the matter was now resolved.

[leedskier] 27/10/2017 08:38

smrf that is London cash equity markets.They sell when they should buy and then complain that they cannot make any money.

[smurfy2001] 27/10/2017 08:32

Not even up a penny yet preconsolidation lol

[leedskier] 27/10/2017 08:24

RBS swings into profit as bank draws line under financial crisis
Financial Times - 26 minutes ago
Royal Bank of Scotland swung into a £392m net profit in the third quarter, beating analyst forecasts as the state-backed bank attempts to draw a line under legacy issues stemming from the financial crisis.

[leedskier] 27/10/2017 08:16

And it is moving up from there.

[leedskier] 27/10/2017 08:08

Royal Bank of Scotland Group (The) (RBS)
287.40
+6.40 (+2.28%

[n73] 27/10/2017 08:04

And off we are with 6 points up.