what would happen to FTSE100 if banks nationalized

twokcc

Thinking it may be time to invest in a FTSE 100 tracker fund(although do doubt that as soon as I do it will oimb another 50%). Just wondering assuming that none of the other shares moved but that the 4 main banks were nationalized(or suspended) how would this affect ftse 100. Is there valued ignored for calculation of FTSE 100 figure, just trying to decide if may be better to invest first thing tomorrow morning(assuming bank shares not suspended) or if they are supended would the arithmetic of working the index out result in an automatic rise based on the value of the remining 96 companies. Anyone any idea?
P.S Not a large sum so I won't be wanting to blame anyone investment will be based on my judjement of any advice given

itsnever2lateisit?

IIRC the 'bail out' plan does not involve the complete nationalisation of the banks, only a minority state by the state, so assuming that the share value doesnt plummet much further then they would still be FTSE100 quoted as per British Leyland in the early 70's

sabretoothtigger

What percentage was leyland

itsnever2lateisit?

Started at 49% but by the time Ted Heath had finished it was 98% ad no longer listed

meester

itsnever2lateisit? wrote: »

Started at 49% but by the time Ted Heath had finished it was 98% ad no longer listed

Ted Heath was not in government or of the governing party for any of the period in question.

Money_Grabber13579

Not sure if this really answers your question, but if the 4 banks were nationalised, they would be removed from the FTSE as they wouldn't be plc's. 4 more companies would then rise up and join the blue-chips in the index from say the FTSE 250.

1694

Essentially-communism