State to save HBOS and RBS

IT_nerd

They'll have to fire the singing guy in their adverts. About time.

sabretoothtigger

So anyone who has bank shares will be given the option to buy extra new ones that pay them 10% interest every year no matter what? Wouldnt that make holding them for 10 years a no brainer

neverdespairgirl

sabretoothtigger wrote: »

So anyone who has bank shares will be given the option to buy extra new ones that pay them 10% interest every year no matter what? Wouldnt that make holding them for 10 years a no brainer

No, the govt's shares will do that, not anyone else's.

GDB2222

sabretoothtigger wrote: »

So anyone who has bank shares will be given the option to buy extra new ones that pay them 10% interest every year no matter what? Wouldnt that make holding them for 10 years a no brainer

First sentence: Correct. Second sentence: No. Think about whether there will be any dividends.

sabretoothtigger

I knew it sounded too good to be true, well I dont know if the public will buy ordinary shares right now even if it makes much better sense then previous rights issues or of course buying at 10 pounds a share, people dont think like that.

The yield on many bank shares was actually above 10% in theory, Im not sure how that will stand in future

Basically it sounds like the government gets an amazing deal at the expense of share holders who should be grateful for not losing everything

WTF?_2

sabretoothtigger wrote: »

Basically it sounds like the government gets an amazing deal at the expense of share holders who should be grateful for not losing everything

As it should be. I didn't see the shareholders standing up and complaining when the dodgy deals were being struck which would eventually bring the business to the point of collapse.

sabretoothtigger

I always thought the self cert was really off but its hard to foresee the cascade effect the whole thing would have and I had no idea about the Fed operating FNM towards sub prime even though people gave warnings 9 years ago that this idea might collapse badly.

Even a building society had sub prime debt apparently, these things just arent public info afaik even to shareholders.

I can foresee now though that having a good relationship with your local bs manager would be an idea for any future home owners. The government saw off NR home owners and they'll do the same with the others now they have the influence to do so

Walletwatch

IT_nerd wrote: »

They'll have to fire the singing guy in their adverts. About time.

Has already been done. See link below

http://forums.moneysavingexpert.com/showthread.html?t=1091667&highlight=Howard+Brown

chucky

GDB2222 wrote: »

Is it really that stupid? If the alternative is to suck all the good companies into the grinder with the bad ones ..... ?

Lehman's debt assets were auctioned off for less than 10% of face value, leaving $350 billion of payments due from the debt swap insurers - to be paid in 2 weeks. Who knows who has that liability, although obviously a good chunk was at AIG? What about their reinsurers?

i think that you'll find that the Lehmans debt assets were auctioned to provide a Recovery Value for the CDS trades that are on the market.

Lehmans debt assets were not auctioned off.

$350 billion of payments can be in either cash or other bonds - it will not all be cash settlements. these settlements are specific to each trade and will probably be found out over the next few weeks showing who is most exposed.