Is the Time to Invest in Banks approaching?

sabretoothtigger

Widely expected afaik, lloyds will be downgraded and thats been obvious since they decided to dive into the pool of toxic waste that is hbos.

They used to be AA so theres a fair argument that they'd need more money to pay the margins on present debt but since they are so heavily government subsidised now its not such a big factor I guess

Hbos has something like 200bn of debt to renew from the year june 08 onwards

They both seem to be holding similar share prices now


Barclays and rbs have us holdings, obama is debating buying bad debt but apparently there is big reasons why its not feasible. Debt swaps to date have been only the best stuff

Miss_R_4

moodys have downgraded barclays bank.......next week is going to be pretty interesting

Trollfever

Page last updated at 22:20 GMT, Monday, 2 February 2009

Obama predicts more bank failures


Barack Obama said the nation's banks were in a very vulnerable position

US President Barack Obama has warned that more US banks are likely to fail, as the full extent of their losses in the economic crisis becomes clear

http://news.bbc.co.uk/2/hi/business/7865165.stm

Update 14/2/09:

Illinois bank becomes 12th failure of the year

[quote

By John Letzing
Last update: 7:23 p.m. EST Feb. 13, 2009

SAN FRANCISCO (MarketWatch) -- Pittsfield, Ill.-based Corn Belt Bank and Trust Company was closed by regulators Friday, marking the 12th bank failure of 2009, the Federal Deposit Insurance Corporation said in a statement. The FDIC earlier Friday had announced the failure of Nebraska-based Sherman County Bank and Florida-based Riverside Bank of the Gulf Coast. Corn Belt Bank marks the 37th bank failure since the start of the credit crisis. Carlinville, Ill.-based Carlinville National Bank will assume Corn Belt Bank's deposits, the FDIC said

[/quote]</H1>
http://www.marketwatch.com/news/story/illinois-bank-becomes-12th-failure/story.aspx?guid=%7B508827F9%2D8CE2%2D4058%2D86E3%2D6958992A4D71%7D&siteid=rss

Trollfever

Government may have to take full control of Lloyds

Ministers have been warned they will be forced to take full control of Lloyds Banking Group after its shares fell by a third amid huge losses.



By James Kirkup Political Correspondent
Last Updated: 6:16PM GMT 13 Feb 2009

Lloyds TSB Group


Britain's biggest high street bank shocked the City by announcing almost £11 billion of losses last year, more than twice what banking analysts had expected.
The Government already holds a 43 per cent stake in Lloyds after injecting £17 billion into the bank last year.
The bank's shares closed down 32.5 per cent last night. The fall leaves taxpayers with a paper loss of nearly £10 billion on the government's investment.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4614655/Government-may-have-to-take-full-control-of-Lloyds.html

mike_the_bike_2

melbury wrote: »

I was about to buy Lloyds shares the week before last at 44p - had filled everything in and just had to click the buy button.

However, like a moron I decided to wait a bit longer thinking they might go back under 40p. The rest is history - wasted opportunity. Talk about he who hesitates and all that, I have been kicking myself all this week.

There you are mate less than 2 weeks later you can pick them up for 32p if you are quick!!

Buddy195

mike_the_bike wrote: »

There you are mate less than 2 weeks later you can pick them up for 32p if you are quick!!

32p where? Closed at 60 odd p today?

Ian_W

mike_the_bike wrote: »

There you are mate less than 2 weeks later you can pick them up for 32p if you are quick!!

Where??????

Cheapest I can find is 61.4p!

Seem to be a lot of clause 4 socialists on here. If you want all the banks nationalised watch the interest rates for savers plummet even more [anyone for 0%?]!! Bank of G.Brown/G.Osbourne/V.Cable + HBSC ain't exactly going to bustin a gut to attract your money with only 2 games in town!

Buddy195

Ian_W wrote: »

Where??????

Cheapest I can find is 61.4p!

Seem to be a lot of clause 4 socialists on here. If you want all the banks nationalised watch the interest rates for savers plummet even more [anyone for 0%?]!! Bank of G.Brown/G.Osbourne/V.Cable + HBSC ain't exactly going to bustin a gut to attract your money with only 2 games in town!

Could the government really afford to take on all that debt? Simple answer would be no. I can't see it happening, ride out the storm for a few months and things should look more promising. Not saying there will be big increases in the short to medium term, but long term RBS, Lloyds, Barclays look good value at current prices. Once the talk of nationalisation subsides then share prices will rise.

Count_Dante

Buddy195 wrote: »

Could the government really afford to take on all that debt? Simple answer would be no. I can't see it happening, ride out the storm for a few months and things should look more promising. Not saying there will be big increases in the short to medium term, but long term RBS, Lloyds, Barclays look good value at current prices. Once the talk of nationalisation subsides then share prices will rise.

Yet the talk is not subsiding, it is getting louder and louder. If we have truly reached the nadir and banks have owned up to all the losses they have incurred, then banks are obviously a good buy. If not, you are throwing money away.

Decadent_Fool

mike_the_bike wrote: »

There you are mate less than 2 weeks later you can pick them up for 32p if you are quick!!

I think you mean they closed, down 32 percent. Still 50 percent higher than three weeks ago!