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UK banks 'still short of capital'
Comments
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Thrugelmir wrote: »Nationwide maybe the Building Society. Their 2% above base SVR mortgage rate is costing them dearly.
That's the old BMR which hasn't been available to new borrowers since 2009 and is BoE base plus 2%.
The SVR which has been around since then is 3.99%.
There's currently an offer of 2.69% (no fee I think) fixed for 4 years which reverts to the SVR. I think they are trying to get people to swap from the BMR - tells you something about their view on future BoE base rates.0 -
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Thrugelmir wrote: »Nationwide maybe the Building Society. Their 2% above base SVR mortgage rate is costing them dearly.
Good job they don't have shareholders to satisfy."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
and at the same time we're telling them to hand out 95% mortgages and risky loans to small businesses
and we wonder why the banks aren't functioning properly....
Commentator on 5L today suggested that the banks were running at something over 33:1 lending:deposits.
Wasn't 9:1 considered to be normal/acceptable risk historically, or was that just some text book tosh?
Any idea what range they are in today Thrug?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »
Any idea what range they are in today Thrug?
Not currently. Will need to wait until the banks publish their full 2012 annual accounts for detailed information.
Barclays peaked at 2008 at a ratio of £72 assets: £1 capital.0 -
grizzly1911 wrote: »Commentator on 5L today suggested that the banks were running at something over 33:1 lending:deposits.
Wasn't 9:1 considered to be normal/acceptable risk historically, or was that just some text book tosh?
Any idea what range they are in today Thrug?
Economics textbooks normally use 10% when working through examples on fractional reserve banking. I think that's just to make the maths simpler though.
If memory serves we're meant to be moving towards 7% risk weighted assets (RWA) under the regulators but markets appear to be insisting that about 9.5-10% is required for a bank to be 'safe'.0 -
If memory serves we're meant to be moving towards 7% risk weighted assets (RWA) under the regulators but markets appear to be insisting that about 9.5-10% is required for a bank to be 'safe'.
Concerns over what's still lingering on the banks balance sheets. If banks start repossessions to terminate those on life support, calling in Company debt, write downs on commercial property portfolios etc . That there's insufficient capital to absorb the losses. Still more fines to come and PPI losses as well.
RBS may still be hit with a multi billion $ fine for mis-selling subprime mortgages in the USA. Original estimate was around $5-$6 billion (£4 billion pounds). .
Good news is the banks may at last be turning the corner. Once adequate capital is put in place.0 -
Thrugelmir wrote: »Concerns over what's still lingering on the banks balance sheets. If banks start repossessions to terminate those on life support, calling in Company debt, write downs on commercial property portfolios etc . That there's insufficient capital to absorb the losses. Still more fines to come and PPI losses as well.
RBS may still be hit with a multi billion $ fine for mis-selling subprime mortgages in the USA. Original estimate was around $5-$6 billion (£4 billion pounds). .
Good news is the banks may at last be turning the corner. Once adequate capital is put in place.
I thought a deadline for PPI claims had been mooted.
I think the government need sto get a line drawn under it PDQ. If real affected people haven't got their claim in by the end of they ear they simply be ruled invalid.
Very naughty for RBS to have been caught misselling subprime but I don't believe the tax payer should be helping to pay any future fine. US regulator should have picked it up sooner and stoped it."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »US regulator should have picked it up sooner and stoped it.
Was picked up a while back. Once the music stopped.
Imagine its all being investigated still. As RBS are implicated with a number of other banks. Total amount involved is sizable.0 -
Thrugelmir wrote: »Was picked up a while back. Once the music stopped.
Imagine its all being investigated still. As RBS are implicated with a number of other banks. Total amount involved is sizable.
Didn't our banks buy up some of their derivative packages too can't the UK authorities lodge a counter claim?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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