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Taxpayers nursing £32bn loss on Lloyds

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Comments

  • PaulF81
    PaulF81 Posts: 1,727 Forumite
    velocity of money <0
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Linton wrote: »
    Where do the banks put their reserves? In the BoE!

    If they had enough. Currently banks are under capitalised.
  • PaulF81
    PaulF81 Posts: 1,727 Forumite
    Why there will be more prints prints. They are crystallizing the gains in house prices that paid for the boomers cushy existence 2001—2008.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 10 January 2013 at 10:27AM
    So, should we start selling?

    If not, what's with all the celebration? Were still just as exposed! The share price does seem to be be somehwat rapidly increasing however. Expect the same again if (when) the US debt ceiling is lifted again?

    I;ve read the break even point for Lloyds for the taxpayer is actually 74p and 51p for RBS.

    Can't seem to hodl the FTSE100 back at the moment either. Theres certainly a lot of optimism around.
  • PaulF81
    PaulF81 Posts: 1,727 Forumite
    Investing for the pre 2015 election sugar rush...
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    Graham_Devon wrote: »
    So, should we start selling?

    If not, what's with all the celebration? Were still just as exposed! The share price does seem to be be somehwat rapidly increasing however. Expect the same again if (when) the US debt ceiling is lifted again?

    Not suggesting that we break out the Champagne. The taxpayer is still nursing large paper losses. However, the near doubling of the Lloyds in 2012 is certainly one of the biggest good news stories that's not made it to the mainstream media.

    I'm fairly sure if we'd seen the share price half it would have received more attention. No doubt some would be posting links from thisismoney.co.uk showing nice graphics with dynamite attached to clocks.

    The government shouldn't be in the business of owning banks nor trying to time the sale based on their investment views. Maybe they should sell at the first opportunity that presents itself after the banks(s) are considered secure. That might mean a loss but the bail outs were meant to be about stability and not profit.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    wotsthat wrote: »
    The government shouldn't be in the business of owning banks nor trying to time the sale based on their investment views.

    Why not retain a holding? Hong Kong has retained a stake in HSBC.
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    Thrugelmir wrote: »
    Why not retain a holding? Hong Kong has retained a stake in HSBC.

    Could do lots of things - just seems a little quiet in terms of government comment.
  • A.Galloway
    A.Galloway Posts: 36 Forumite
    Government have not lost anything...yet.

    I'm currently sitting on a shed load of RBS stock from when it was selling for 24p! Bought them up like there was no tomorrow!

    The Government will get their money back, just not any time soon!

    A.G
  • sabretoothtigger
    sabretoothtigger Posts: 10,036 Forumite
    Part of the Furniture 10,000 Posts Photogenic Combo Breaker
    CLAPTON wrote: »
    why is that?

    Supply and demand, gov cant just dump shares and expect the price to hold up. When the barclays arab guy sold some, the price dropped 60p overnight. It did recover but the market is more of a liquid then a solid and the price is just the surface

    What was suggested was gov setup up a trust then sell shares in that to pension funds, so rbs and lloyds sold together as an asset. It would help if they paid a div

    Thrugelmir wrote: »
    Why not retain a holding? Hong Kong has retained a stake in HSBC.

    In communist China. Why dont we do that, perhaps because we have alot of debt to repay. Its a compromised situation also to regulate something that is ours, china wouldnt mind that
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