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RBS & LLoyds

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Comments

  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    kennyboy66 wrote: »
    No idea on the share price impact, although I would imagine that dividends will need to be reinstated before the government sells off its stake.

    Rebuilding the Capital base is more about making the business less risky and more able to withstand problems in the future, most certainly not about higher returns.

    My history on shares is not good, however I would have thought re-building the capital base, making the business less risky, would result in the share price increasing.
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • lemonjelly
    lemonjelly Posts: 8,014 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee!
    On radio fivelive last night they were saying that this valuation brings lloyds almost to the price which the government paid for them.

    If this is true, then we're still running at a loss...
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • doire_2
    doire_2 Posts: 2,280 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Oh dear some people are using this as a stick to beat the Tories with.

    Dont tell me they are praising the hopeless pair that is brown and darling :eek:
  • nicko33
    nicko33 Posts: 1,125 Forumite
    lemonjelly wrote: »
    On radio fivelive last night they were saying that this valuation brings lloyds almost to the price which the government paid for them.

    If this is true, then we're still running at a loss...
    yesterday Peston said we paid 73.6p for 41%
    http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/04/lloyds_black_is_the_colour_of.html
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    nicko33 wrote: »
    At their current share prices, taxpayers are a few billion pounds up on the £66bn we paid in aggregate for our stakes in those two banks (on this morning's share price, Lloyds remains a smidgeon below the 73.6p we paid for our 41% stake, and RBS shares are well clear of taxpayers' 50.2p average purchase price).

    Looks like were well up on one share price and just slightly below the other.
    Combined however we are a few billion pounds up on the investment
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • Number of shares : 66,915,170,000. owned by we the people : 27,435,219,700

    So let's assume (for fun) that the dividend per share every year will be about half that of previous years (before the incident) .

    We (the people) could gain 17 pence per share roughly. which is ...£4,663,987,349
    For doing nothing but holding the shares.Not a great return on the loan but it's enough to cut the proposed NI rise by 25%.
    If the dividend is higher then more revenue is generated.
    "Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves." - Norm Franz
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