Should i buy Lloyds and Barclays shares?

opinions4u

Thrugelmir wrote: »

That was reflected in the 2010 results.

More worrying is the £200 billion tied in the Irish property market. Suspect they'll be more provision made against this part of the loan portfolio in the years to come.

I just went seeking evidence that your post was inaccurate and found this:

http://www.guardian.co.uk/business/2011/feb/21/halifax-mortgage-mix-up-costs-lloyds-500m-pounds

The £500m cost of writing to customers and making the payments will be treated as a provision in the 2010 figures.

Meh.

atypical

It's quite understandable Antonio is trying to dig-out all the bad news/figures for this year.

Thrugelmir

opinions4u wrote: »

I just went seeking evidence that your post was inaccurate and found this:


Meh.

Worth researching Lloyds mortgage book as well. As around 60% (of £390 billion) is considered poor risk. I assume this reflects HBOS's underwriting in the credit boom years.

The merger should never been allowed to take place.

Masomnia

atypical wrote: »

It's quite understandable Antonio is trying to dig-out all the bad news/figures for this year.

Seems obvious to me that they're getting all the bad results out of the way now, while it can be blamed on the previous management, so that future results will make Antonio look better.

£3.2billion for PPI is surely an overestimate, a cynic could suggest that this will make their profits look better in future!

opinions4u

Masomnia wrote: »

£3.2billion for PPI is surely an overestimate, a cynic could suggest that this will make their profits look better in future!

Lloyds in particular was a PPI machine.

HBOS will have sold a fair bit on mortgages, but that's not the lump sum stuff that almost guarantees an upheld complaint.

My first thought was that it's high, but on further reflection it seems to me that it won't be a million miles over the mark.

Thrugelmir wrote: »

Worth researching Lloyds mortgage book as well. As around 60% (of £390 billion) is considered poor risk. I assume this reflects HBOS's underwriting in the credit boom years.

It depends on your definition of poor risk. On the Halifax side they hung out there far too long with 97% mortgages in 2008 and got in to BTL at the end of 2007 (which struck me as poor timing when they announced it). HBOS were slow to put the brakes on Birmingham Midshires, although I think TMB's funding dried up shortly after Northern Rock hit the fan. TMB and BM is where most of the iffy stuff will be sat. I don't think Lloyds TSB and C&G were too aggressive. The residential mortgage book is currently around £337bn IIRC, but secured and unsecured losses were falling sharply from £4.2bn to £2.8bn within the Retail business 2009 v 2010. So I'd be surprised in the risks in the residential mortgage book are anything like on the scale of Ireland, Australia and Bank of Scotland Corporate. Although I really shouldn't be surprised by HBOS skeletons anymore!

The merger should never been allowed to take place.

It was a shocker of decision from a LTSB shareholder point of view and a high street competition perspective. There is little doubt that the Halifax / BoS retail business was in half decent shape and could have been sold off as a going concern, but the Corporate lending was something that I will never get over from the company that taught me the successful art of prudent underwriting! Brown and Darling must have had a jolly good giggle after Daniels agreed to buy the turkey lock stock and barrel.

For clarity, I wouldn't buy shares in them. Ask me again in 1 months.

gadgetmind

gadgetmind wrote: »

To counteract this, I'll go and read the Motley Fool bank board for a while to see how the AIB and BOI investors are fairing.

Wow, simply, wow!

http://ftalphaville.ft.com/blog/2011/06/28/607206/pensioners-win-their-boi-burdensharing-battle/

After a legal battle by a lone pensioner called Albert Kempster, the Bank of Ireland has backed down, at least for now.

Motely Fool thread here.

http://boards.fool.co.uk/termination-of-13375-lme-12295330.aspx?sort=whole#12295330

Many "fools" have been working hard to get Bank of Ireland as much negative publicity as possible on this one, and also trying to prod the sleeping bear that is the FSA into action, but with no success on the latter.

Sylviah_2

It's really a question.

downs523

What do you guys think of investing in them now?

ffacoffipawb

pqrdef wrote: »

Why? When did the government stop pouring money down the drain?

In May 2010.

webmasterpolo

Hi

I'm considering a punt on some Lloyds shares, I wanted to know what the timing was, if I place an order to buy now (sunday night) when will they be bought? Monday at market opening?

-Web