You've lost another £2,300,000,000!

amcluesent

State left with £2.3bn loss as RBS fundraising snubbed

The Government was nursing a £2.3bn loss yesterday after Royal Bank of Scotland shareholders snubbed the lender's £15bn fundraising, leaving the state with 57.9pc of the bank and 22.9bn shares that are already worth less than the taxpayer paid.

The investments will be managed by UK Financial Investments, the new holding company run by John Kingman, one of Gordon Brown's most trusted civil servants.



A Clown, pictured earlier today

earlgrey_3

What do you suppose the Bullingdon Club would have done instead? Hard to choose isn't it?





(George on the right before he and Rothchild fell out.)

Masomnia

Yawn. *To make ten characters.*

gazza975526570

Will there be such stories when the shareprice rises about the purchase price?

Somehow i think not

Masomnia

gazza975526570 wrote: »

Will there be such stories when the shareprice rises about the purchase price?

Somehow i think not

Nope, just like the article doesn't mention that the tax payer could indeed make a profit from the preference shares.

gazza975526570

Im fairly sure they will end up making a profit in the longer term

TehJumpingJawa

gazza975526570 wrote: »

Im fairly sure they will end up making a profit in the longer term

If the market believed the same, surely it wouldn't have required a government bail out?

Masomnia

Closed at 66.9p today. I look forward to seeing how much publicity it gets!

gozomark

gazza975526570 wrote: »

Im fairly sure they will end up making a profit in the longer term

who are "they" - don't you mean "we" ?

sabretoothtigger

TehJumpingJawa wrote: »

If the market believed the same, surely it wouldn't have required a government bail out?

Not all money on the market is prepared to commit money for 10 or 20 years.

The government wont lose because they will get the company proceeds even if it does goes broke where as a normal shareholder stands to lose everything
Also a majority shareholder who wont sell no matter what, this has to provide long term support to the price which should put the odds on a bet in your favour at present prices imo

On the bright side these shares are tipped at 1 pound some places. They are priced below their Net asset value, so the value of bad loans is presumably well accounted for though no one can know just how bad debts will be, many seem to assume all mortgages will return 10% only.
Also the entire market is priced below a long term average worse then 2003, to quote another poster 'the apocalypse is factored into the price' :laugh:

RBS american holdings rose 20% yesterday and are up a quarter since monday, havent a clue why tbh
Of course its easier to rise 20% when you've lost 90%


http://uk.finance.yahoo.com/q/bc?s=RBS&t=3m&l=on&z=m&q=l&c=%5EDJI

http://investorshub.advfn.com/boards/board.aspx?board_id=12158

chopperharris

Some time I feel like a proctologist , then I remember that I am only looking at politicians and wannabees instead.

I have said it on various forums and newspapers.The rbs shares wont be a loss to the govt , or the tax payer , and those that say it is are playing a silly game of politics that weakens the share price to self fulfill thier prophecy.....however they are strangley quiet when they are wrong.

These govt held "ord 25p" shares will be sold back in small amounts , over a medium to long term.They dont dilute in the traditional sense until they are on the market en masse or divis are restored.Rbs will be the first port of call to buy them back , rather than direct to the stock market , and not to open market in large enough amounts to affect them i.e in an overnight fashion.Nationalisation would have cost less short term , but destroyed the share price.I suspect that there was a garuntee to not pay face value on buy back at rbs and a time scale , if that wasnt part of the deal then I would be extremely surprised.

They will be a quid each by spring end or sooner.Rbs is an attractive buy , more now than when it hit its lowest.Those that bought above £2 will have to wait a long time to see that again , 5-10 years to see a fiver or more again....or nothing should it have been nationalised in the true sense of the word.

Its not unusual for a country to hold a stake in a bank or two , especially when it gets it cheap , and divis when restored make it a shrewd investment

Although I hate to say it but thank god we dont have a car manufacturer anymore , or several for that matter , to bail out.