You've lost another £2,300,000,000!

sabretoothtigger

RBS has the advantage of holding so much potential bad debt that even the government doesnt want that on the books, governments can lose their AAA rating like anyone else

Lloyds for example is likely to lose their AA when they own hbos and it will cost them

chopperharris

sabretoothtigger wrote: »

RBS has the advantage of holding so much potential bad debt that even the government doesnt want that on the books, governments can lose their AAA rating like anyone else

Lloyds for example is likely to lose their AA when they own hbos and it will cost them

Where do you get your gdp and debt figures from in your sig , I cant find any at your level?If it was that level we would be in africa.

All banks have a percentage of bad debt , thats why they are in for some recapitalisation.Some are in for more than others compared as a percentage of profit and deposit , and rbs isnt one of the bad level ones....it was more overextended by its buying than overweighted by others debt.

Watch for a payback faster than northern rock.Its touted as a buy for a reason by the big boys that actually know their numbers , and they over estimated the bad debt to suit.

Simple thing about hbos , theres a buyer sitting there other than lloyds.Then there is no potential loser apart from the new owner.Let the new guy in instead of merging , shareholders win , govt wins , lloyds win , hbos wins...if it goes to the wall depositors still win , shareholders lose but hey thats the game of risk reward.

sabretoothtigger

debt figures relate to america and include private and public debt, its an old quote. I can faintly remember discussing it here, I think the uk percentage was not far behind

Some similar info, except this doesnt show private debt at all





http://www.google.co.uk/search?hl=en&safe=off&client=firefox-a&rls=org.mozilla%3Aen-GB%3Aofficial&hs=5cO&q=%22Debt+as+a+percentage+of+GDP+is+now+356%25%3B+during+the+Great+Depression%2C+it+was+260%25%22&btnG=Search&meta=

http://www.minyanville.com/articles/Bernanke-Paulson-Fed-Credit-crunch-recession/index/a/19357


I think theres a case for all the banks, but theres a number of angles on it. I think Peston mentioned some figures the market was acting off for hbos, they needed 350bn in renewed money market loans for the year june 08 onwards. Hence the plunge, etc

Another program I was watching talked about banks leverage and how badly balanced they were to very short term funding.
Instead of securing long term funding like bonds I guess would qualify, instead they used libor, etc far too much

Anyway the figures are correct afaik, people borrow more now then they did in the 30's but probably also true that the debt is more evenly spread/supported