Banks Part-Nationalised - What does this mean?

stphnstevey

Heard that Lloyds TSB, HBOS, Barclays etc are all going to be part nationalised - but just worried what that actually means for us as savers - can anyone translate?

MarkyMarkD

They aren't really being part-nationalised. It's just terminology.

They are going to issue shares - probably preference shares, which are normally not voting and don't bear the residual risk, and hence earn a fixed rate of return not a variable dividend - to the Government. Their ordinary shares will still be 100% listed on the stock exchange, just as they are now.

stphnstevey

Should we be worried about their stabilty?

These names are the cornerstones of the public banking system and form part of the top five high street banks - it's just worrying to hear they need 'propping up'

purch

Should we be worried about their stabilty?

A few people were, apparantly, a couple of weeks ago.

I think some "bloke" called Peston was writing about it on his blogs....and Gordon Brown made a big announcement about something or other......I think.

Other than that not a lot happened !!!

MarkyMarkD

They don't really need propping up. A lot of people believe that they are being forced to increase their capital to "ultra-bomb-proof" levels just so that customers can be reassured - with veracity - that nothing can happen which would make their banks go out of business.

RayWolfe

I think from this and other posts that the OP doesn't get out much.

stphnstevey

RayWolfe wrote: »

I think from this and other posts that the OP doesn't get out much.

Looks like I woke up a troll :rotfl:

Milarky

stphnstevey wrote: »

Looks like I woke up a troll :rotfl:

No, Ray's a different species...