another rbs rights issue? - would you risk it??

pumpndump

sabretoothtigger wrote: »

Whats their american bank, I thought only rbs and barclays were quoted or eligable to take part in usa funding deal

Their American bank is called HSBC

opinions4u

napoleon wrote: »

They're having a laugh. What happened to the last £12 billion they raised in a rights issue a few months ago? and now they want even more. Hoho, they really are pulling our legs

Scared customers probably withdrew it and paid it in to Northern Rock / National Savings / Irish banks / shove it under the mattress.

All these 'guarantees' do is destabilise the banks further.

sabretoothtigger

Thats not far wrong, barclays probably did it best & quickly with their funding and again they are apparently doing the same now though some are wondering if they can pull it off.
They are the only bank to be allowed till next year to satisfy government demands I read, would be good to see someone show how its done properly

[FONT=Verdana,Geneva,Arial,Helvetica,sans-serif]Allstate Still In Talks To Buy RBS Insurance -Source
[FONT=verdana,arial,helvetica,sans-serif]By Victoria Howley and Marietta Cauchi
[FONT=verdana,arial,helvetica,sans-serif]Of DOW JONES NEWSWIRES[/FONT]
[FONT=verdana,arial,helvetica,sans-serif]LONDON (Dow Jones)--

U.S. insurer Allstate Corp. (ALL) is still in talks to acquire RBS insurance, a person familiar with the matter said Thursday.[/FONT]
[FONT=verdana,arial,helvetica,sans-serif]Allstate was one of eight companies invited to bid for the insurance businesses, which includes Churchill and Direct Line, when Royal Bank of Scotland Group PLC (RBS.LN) put them on the block earlier in the year.[/FONT]
[FONT=verdana,arial,helvetica,sans-serif]Private equity firms were told that they could not compete in the auction in the initial stages. But the person, and one other familiar with the situation, said that CVC Capital Partners is currently in talks with RBS about taking a 51% controlling stake in the business.[/FONT]
[FONT=verdana,arial,helvetica,sans-serif]According to a press report, CVC is one of three bidders negotiating to buy a 51% stake.[/FONT]
[FONT=verdana,arial,helvetica,sans-serif]RBS said Monday it will raise GBP20 billion in new capital, looking to get GBP15 billion of it from investors and with the rest being subscribed to by the U.K. Treasury.[/FONT]
[FONT=verdana,arial,helvetica,sans-serif]The bank's incoming Chief Executive Stephen Hester said on a conference call Monday that the capital raising program meant the bank can now look at its disposal and risk reduction programs.[/FONT]
[FONT=verdana,arial,helvetica,sans-serif]"We don't want to sell at the wrong price but if we get the right price we are committed to a sale," he said. "We are in advanced discussions on that," he added.[/FONT]
[/FONT][/FONT]

Insurance is one of rbs great investment successes, creating the market leader directline. In future they promise not to risk so much on companies like this though they have made alot of money in the past, so 5bn from selling assets ?

RBS revenues-
Investment banking & trading  - 3.6bn
UK Retail highstreet (Natwest)- 2.4bn
UK Business banking           - 1.9bn
US Retail highstreet (Citizen)- 1.3bn
RBS Insurance                 - 0.7bn

Possible 2bn downgrade to loan 'assets' ie. 10% increase of the fundraising figure above
http://www.breakingviews.com/2008/10/16/Writedowns.aspx

anna42hmr

thanks for that sabretoothtigger some interesting reading there,

anna42hmr

looks like they have had a slight increase today at 68.8p. for any one else who like me is tracking what happens to see if the new rights issue will be worth it,

mrposhman

where have you seen the rights issue published at 65.5p?

I can't find any statements on their corporate website. I bought 4000 shares on Monday and wondering if I get the offer.

I would doubt it would be as high as 65.5p though, rights issues typically include at least a 10% discount.

sabretoothtigger

Its a discount to last weeks price afaik, the hbos one is actually way above where it is now

anna42hmr

mrposhman wrote: »

where have you seen the rights issue published at 65.5p?

I can't find any statements on their corporate website. I bought 4000 shares on Monday and wondering if I get the offer.

I would doubt it would be as high as 65.5p though, rights issues typically include at least a 10% discount.

it was a company announcement made when they confirmed fred was leaving announced online

sabretoothtigger

[SIZE=+1]Private banks can afford to be fussy[/SIZE]
Coutts, which is part of the Royal Bank of Scotland (LSE: RBS.L - news) group, says it has been able to continue lending in tough times as "our mortgage and lending book has been and remains competitive and 'open for business'."
"Historically, we have [also] adopted a prudent approach to lending, but our relationship business model allows us to accommodate client requirements even in difficult times," says Karen Bevis, product specialist at Coutts.
"We do review our policy from time to time taking into account economic and market conditions, but on the whole it has been business as usual for us."

http://uk.biz.yahoo.com/17102008/399/private-banks-afford-fussy.html

anna42hmr

mrposhman wrote: »

where have you seen the rights issue published at 65.5p?

I can't find any statements on their corporate website. I bought 4000 shares on Monday and wondering if I get the offer.

I would doubt it would be as high as 65.5p though, rights issues typically include at least a 10% discount.

go to www.rbs.com and then click investor relations, its on there, its based on 8.5% discount on the closing price of 10th october