Royal Bank Of Scotland Share Discussion Threads

[jungle jim] 16/1/2018 08:13

The only problem with dipping in to this thread on an ad-hoc basis is the inability to keep up:

"The ECB says it will convene within 48 hours to decide on Stokes' availability to represent England."

I nearly asked who Stokes was and what the European Central Bank had to decide, I thought I had missed yet another Brexit issue. Then the penny dropped.

[gcom2] 16/1/2018 08:05

back down again

[polar fox] 15/1/2018 21:20

From the FT:

Carillion has been sunk by its debt, but it’s not clear that its lenders’ quarterly results will suffer the same fate, CreditSights analysts said in a note today.

The company had £835m of committed bank facilities and £140m in short-term facilities on Sept 30, according to its most recent accounts. Sky News reported today that banks could be exposed to up to £2bn of losses from the collapse.

But some of the losses may have already shown up in banks’ accounts, so “their residual losses might not be as substantial as feared,” wrote analysts Simon Adamson and Puja Karia.

They found that five banks reported a significant increase in impairment charges in the third quarter of 2017. While none of the banks referenced the contractor by name, the charges rose in business groups and geographical regions that match up with Carillion.

Here are the major charges listed:

– Santander UK: The bank’s impairment charges rose to £38m from £9m the previous quarter (and zero in 3Q 2016). Notably, it described “a single [global corporate banking] loan that went into non-performance.R21;

– RBS: Total commercial-banking impairments rose to £151m from £33m the previous quarter (and £20m in 3Q 2016). The construction sector was responsible for a £152m impairment, which “we think is wholly, or mostly, in respect of Carillion,” the analysts wrote.

– Lloyds: Impairments rose to £270m from £141m the previous quarter (and £204m in 3Q 2016). The analysts say it “may have made an impairment of maybe around £100m against Carillion.

– HSBC: The bank cited — but did not describe — specific charges in its 3Q results, and its impairments in Europe more than trebled from the previous quarter and year to £130m. (The analysts said HSBC’s European business is mostly UK-focussed.)

– Svenska Handelsbanken: Its UK operations’ impairment charges rose to SEK 148m from SEK 23m the quarter before. “Assuming this was mostly in relation to Carillion, this could imply a charge of roughly SEK 125m, although this would be equivalent to only around £11m,” the analysts wrote.

Barclays, one of the leaders of the Carillion’s banking syndicate, did not appear to reference the contractor in its 3Q report, according to the note.

unquote

[leedskier] 15/1/2018 15:55

polar fox, I read it when the story broke. All very sad and a contributory cause of the dire test results/ he was the Vice Captain.

Affray is quite a heavy charge. Normally one would expect assault occasioning actual bodily harm for a casual punch up following a heavy night drinking.

edit

I see that when initially arrested it was on suspicion of assault occasioning actual bodily harm.

[maxk] 15/1/2018 15:48

“These results show that Jeremy Corbyn’s leadership has given the party a clear sense of direction.”


LOL !

[polar fox] 15/1/2018 15:45

I imagine, Leeds, that some of the readers of this thread are more interested in this than the current shenanigans of the crypto communists:

The ECB says it will convene within 48 hours to decide on Stokes' availability to represent England.

Affray is a triable either-way charge, which means the case can ultimately be heard in either the magistrates' court or the crown court.

It carries a maximum penalty when tried summarily - in the magistrates' court - of a fine or up to six months in prison, and when tried on indictment - in the crown court - of up to three years in prison.

unquote

[leedskier] 15/1/2018 14:58

Jeremy Corbyn’s left-wing allies seized control of Labour’s party machine today in a clean sweep of elections to the National Executive.

The results opened the door for the Left to deselect centrist MPs and carry out a purge of party officials who have stood in their leader’s way.





God help us if this lot ever get elected.

[leedskier] 15/1/2018 14:11

Near death experiences are quite a common feature of UK PLC. Every now and again when the life support systems are withdrawn, one or two drop off the perch. Some think it is good for a capitalist economy because the weak are weeded out.

Back in the day Britain had the strongest aircraft manufacturing industry in the world. Now it is reduced to buying stuff made in Amerika or under some tripartite EU members' scheme, where a number of member states each make their own bits and then they agree where the bits are all to be assembled and glued together.

The collapse of that once thriving industry was a direct result of HM Treasury.

Any UK CEOs tendering and negotiating with HM Treasury for contracts, need therapeutical help.

[smurfy2001] 15/1/2018 12:04

No wonder banks were asking the government for a bailout. I agreed with Vince Cable for once. Saying that RBS and Lloyds have written down some of the loans (according to the CLLN thread) not sure how much though.

[polar fox] 15/1/2018 11:15

It's being reported that total bank exposure has increased from £900m to around £2bn!
RBS is one of the big five lenders, according to recent news articles, of course.

[polar fox] 15/1/2018 09:50

Here's a typical example of the impact:

Oxfordshire County Council has left nothing to chance in the event of Carillion's collapse.

Carillion provides school dinners to around 18,000 students in Oxfordshire.

The council says that if Carillion staff don't turn up today "we will provide school lunches to schools needing support, and the fire service are on standby to deliver them".

Alexandra Bailey, the council’s director for property, assets and investment, said the contracts with Carillion are being taken back in-house.

unquote

[ianood] 15/1/2018 08:43

cfc1 - sorry, I don't accept that. Its the nature of the business and competition amongst contractors for contracts which are inevitably very big numbers and very thin margins. They control their own tenders and cashflow. Nevertheless a sad day and I'm sorry for all employees.

[cfc1] 15/1/2018 08:09

gov't ARE to blame partly for Carillion. Gov't screws contractors and forces themto take pathetic ROI projects...then we all wonder why these companies go bust!!!!

[leedskier] 15/1/2018 08:07

More on that rant, if the Govt cannot fund modest state pensions, the NHS & Care Services, and defence capability with full employment and Gilt yields at half the rate of inflation (i.e. free money) it means that taxation is too low.

[leedskier] 15/1/2018 07:54

Brexit is the least of Britain's concerns. It is the policy of austerity at all costs which is killing the economy. I have ranted on about this for a while now.

[polar fox] 15/1/2018 07:53

CLLN suspended. All lost for shareholders, no doubt.

[maxk] 15/1/2018 07:47

Has anyone blamed brexit yet?

[leedskier] 15/1/2018 07:42

The collapse could trigger a contagion that could threaten hundreds of its suppliers.

“If it goes under it will be a disaster,” Tony Williams, analyst at Building Value, warned yesterday. “They’ll take a great swathe of companies with them. Hundreds of businesses would be at risk.”

Mr Williams said suppliers could topple as Carillion subcontracts most of its work to trades providing services like glazing, interiors and demolition works. He urged the government to broker a solution: “It’s a real shocker. Carillion supplies the public sector with everything from school dinners, to roads, to HS2. It will cost Britain more if it’s allowed to go bust.”

[polar fox] 15/1/2018 07:42

How much will the big lenders lose? HSBC, Santander, RBS, Lloyds and Barclays.

[leedskier] 15/1/2018 07:39

David Buik‏
@truemagic68

There were talks of a £3 billion merger between Balfour Beatty & Carillion in July 2014. I wonder why it did not take place?

[leedskier] 15/1/2018 07:29

Construction group Carillion gone into compulsory liquidation and expects PricewaterhouseCoopers to be appointed as special managers, to act on behalf of the Official Receiver.

Carillion said it had talks with its key financial and other stakeholders, including the Government, at the weekend regarding options to reduce debt and strengthen the group's balance sheet.

Carillion also asked those stakeholders for limited short term financial support, to enable it to continue to trade while longer term engagement continued.

But it said that despite considerable efforts, those discussions had not been successful, and the board had concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect.

It said an application was made to the High Court for a compulsory liquidation of Carillion before opening of business today and an order has been granted to appoint the Official Receiver as the liquidator of Carillion.

The group said it anticipated that the Official Receiver would make an application to the High Court for PricewaterhouseCoopers LLP to be appointed as special managers, to act on behalf of the Official Receiver.

Chairman Philip Green said: 'This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.

'Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the Board is very grateful for the huge efforts made by Keith Cochrane, our executive team and many others who have worked tirelessly over this period.

'In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision.

'We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers.'