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Co-operative bank - downgraded to Junk

24

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Originally Posted by pqrdef
    So what happens when a bank becomes insolvent, if the plc (unlike NR and HBOS) is a wholly-owned subsidiary? Do the FSCS and/or the Treasury get to pick up the tab while the parent group walks away?

    When Lloyds took over HBOS. The Treasury lent Lloyds £25 billion to allow HBOS to maintain trading. This fact was not disclosed when Lloyds had the rights issue post the merger to raise additional capital.
  • purch
    purch Posts: 9,865 Forumite
    Co-operative bank - downgraded to Junk

    Those bloody Yanks and their securitis(z)ed mortgage products have a lot to answer for :mad:
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Masomnia wrote: »
    Preference shares yielding 9.5%, anyone else tempted?! :D

    Is that the yield to maturity?

    As PIBS are priced well above par in any event.
  • purch
    purch Posts: 9,865 Forumite
    Thrugelmir wrote: »
    As PIBS are priced well above par in any event.

    I wish.......

    My Nationwide 6 1/4% that I bought at 72 in 2009 are only trading at 97 currently..................of course if you want to pay 100 :j
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    antrobus wrote: »
    Britannia and Co-operative to create £70bn 'super-mutual'
    All spin and bull. It was really a demutualisation of Britannia, though I gather the members were bought out with Co-op divi cards.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • antrobus
    antrobus Posts: 17,386 Forumite
    pqrdef wrote: »
    All spin and bull. It was really a demutualisation of Britannia,

    Oh I agree. I thought it was spin and bull at the time. Merger my backside, the Co-Op were rescuing the Britannia.
    pqrdef wrote: »
    ...though I gather the members were bought out with Co-op divi cards.

    And even then, the Britannia used to have some loyalty reward scheme. There have been complaints that the divi ain't as good.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Mortgage-free Glee!
    interesting coincidence FSCS had quarter page add in some sunday papers

    trying to re-assure co-op account holders?
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Masomnia wrote: »
    Preference shares yielding 9.5%, anyone else tempted?! :D

    Yes, and I'm watching CPBC rather closely.

    Yields went over 15% today, which officially makes it of interest to a dedicated rubbish grubber such as myself.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • angrypirate
    angrypirate Posts: 1,151 Forumite
    Is this the Co-op bank the bank that Labour owes £3.4 million to? Talk about bad loans!!!

    I wonder if the Tories will actually give a damn if it goes under? Somehow I doubt they will care about bailing it out
  • oz0707
    oz0707 Posts: 918 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    What's the idiots guide to these preference shares?
    Are they a fixed income bond kind of thing? I see over on other forums that if the divi is not paid (and funds are avail) then more shares will be issued on a 4/3 basis.

    So this means that the divi is a fixed figure/percentage?
    Sorry for the naivety!
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