RBS about to implode?

JonnyBravo

RBS shares are now down over 60% on the day. (13p a throw)

I'm aware of course that the Govt is now the majority shareholder but it seems as if no-one else wants a bar of it no matter what the price.

Lloyds seems to be heading the same way. Over 30% down on the day.

RBS to be fully nationalised by end of week?

mizzbiz

JonnyBravo wrote: »

RBS shares are now down over 60% on the day. (13p a throw)

I'm aware of course that the Govt is now the majority shareholder but it seems as if no-one else wants a bar of it no matter what the price.

Lloyds seems to be heading the same way. Over 30% down on the day.

RBS to be fully nationalised by end of week?

God, soon we'll be calling each other Comrade, working for the ministry of shopping and hiding from our 42" Telescreens!

Conflict

JonnyBravo wrote: »

RBS to be fully nationalised by end of week?

Odds are that she was going to be nationalised at some point just not for a few more months, but with this vote of no confidence by the markets they will have to nationalise within the next few weeks most likely, assuming it starts to hit their commercial business.

They are all falling one by one :embarasse

Masomnia

As low as 10p today, but back up to 11.9p now...

Depends on what happens with savers, a scary news story at 10pm and I wouldn't be surprised if trading was suspended tomorow.

chucky

just shows that their cavalier attitude to buying up other banks at any cost wasn't one of their better strategies...

Thrugelmir

Why would you buy a shares in a Company that is unlikely to make a profit for at least 3 years, and pay no dividend at the same time. Far better opportunities in the short term.

RBS will contract as a business over the coming months while it sells off its foreign interests.

WTF?_2

mizzbiz wrote: »

God, soon we'll be calling each other Comrade, working for the ministry of shopping and hiding from our 42" Telescreens!

Many a true thing is said in jest.

Now that the s*** is hitting the fan, this government's instinct will be to bail out and nationalise everything in sight.

Many of the UK banks are insolvent and the entire country will end up taking on their liabilities. People and businesses have never been in more debt anyway - even before the recession started. The government plans to start printing money and will most likely start end up it away through nationalised banks for a peppercorn rate of interest. We'll probably see currency controls as well as price controls on essentials.

Conflict

Interesting FT Alphaville piece -

http://ftalphaville.ft.com/blog/2009/01/19/51341/rbs-et-mon-droit-hm-deficits/

In Summary

• RBS is the WORLDS largest Company (by Assets)
• Nationalising RBS would increase UK public debt 369 per cent.

Given that I think the best course is to let RBS fail, as its either RBS fails now or the UK as a whole fails within months if we take on that level of exposure.

Pobby

When they talk about tax payers billions bailing out the banks, where does the money come from? Surely they don`t have this money just sitting around?

WTF?_2

Pobby wrote: »

When they talk about tax payers billions bailing out the banks, where does the money come from? Surely they don`t have this money just sitting around?

In theory, they borrow it.

This is not likely to happen as no investor in their right mind would extend a long term loan to UK plc at the sort of interest rates that our government is offering, so they'll print it instead under the guise of 'quantitative easing' which is to 'fight deflation' and nothing whatsoever to do with the fact that the government are stony broke, no sirree.

penguine

How long before short-selling of bank shares is suspended again?