Will RBS be Nationalised? What will happen to the shareholders?

ideal_knowledge001

Hello Guys,

I need some advice. I have been reading a lot lately about RBS. I hold shares in RBS for about 3 years which were brought at 40p each.

Do you feel RBS will be nationalised? If the bank does then do I lose all the money I have invested in the bank?

I am concerned as I do not fully understand what will happen with my investment, is there a chance I can lose it all as the papers are talking about a good/bad bank split?

Also what are your opinions on the bank and share price do you feel it may go up/down?

Any replies will be highly appreciated, I am still trying to understand RBS but I am really confused.

Thank you

Thrugelmir

RBS will not be nationalised. How to offload the Governments shareholding is currently the topic of the day.

Possibly an investment bank / retail bank split may be on the cards.

Bad bank isn't all bad either. As potentially there may be a few gems amongst the poor performing assets.

Southend1

ideal_knowledge001 wrote: »

Hello Guys,

I need some advice. I have been reading a lot lately about RBS. I hold shares in RBS for about 3 years which were brought at 40p each.

Do you feel RBS will be nationalised? If the bank does then do I lose all the money I have invested in the bank?

I am concerned as I do not fully understand what will happen with my investment, is there a chance I can lose it all as the papers are talking about a good/bad bank split?

Also what are your opinions on the bank and share price do you feel it may go up/down?

Any replies will be highly appreciated, I am still trying to understand RBS but I am really confused.

Thank you

There is always the possibility you will lose all of your investment.

I doubt the condems would be up for full nationalisation, most likely they will sell publicly owned shares back into the market.

pqrdef

It's very unlikely that RBS has come clean about the true state of its balance sheet. Estimates vary wildly as to how much bad debt it's hiding - which only shows how much in the dark we are.

It should have been nationalised whe it was bailed out. It's a mystery why the shares are still trading and haven't been suspended. Well no, no mystery, it's because the system is corrupt and those who run it do what they like.

For some reason, Osborne is desperate to sell RBS before the election. I can only imagine that he owes somebody a favour and is scared that he might not be in the job after the election.

But even the government can understand that flogging shares now would be the equivalent of doing a new issue on a blatantly false prospectus, and even by the abysmal stantards of the modern City this is till considered to be a bit of a no-no.

Putting it another way, the government dribbling shares onto the market would be insider dealing on an epic scale.

The Treasury's finest experts (not saying much nowadays) are looking for a way to wipe you out, but they may not find one. They're committed to playing this game where RBS is a legit quoted company which just happens to have HMG as a shareholder. If they turn the bailout into a deferred nationalisation now, they will lose all credibility and lawsuits will follow.

But if they stick to the game, they can't hurt your shares without hurting their own, and Robert Peston will have his calculator out to tell us how much they're costing the taxpayer.

Osborne also has this problem that the cost of the bailout was kept off the government's balance sheet, and the deficit reduction programme will be a joke if he has to crystallise a loss.

Desperate situations call for desperate remedies, and whatever they come up with for RBS is likely to be gob-smackingly jaw-droppingly desperate.

opinions4u

Yes you could lose all your money. You must have realised the risk when you bought bank shares at a time when banks were going bust.

But it's in the government's interest to improve the share price.

wary

I also hold shares in RBS at around the 40p mark and agree that full nationalisation seems highly unlikely.

However, one thing I'm unclear about is what would happen to existing shares should RBS be split into a "good" bank & a "bad" bank. Would they effectivey become shares in the good bank only, the bad bank only, would portfolios be split so holders have shares in both ...?

Anyone know?

Radiantsoul

wary wrote: »

However, one thing I'm unclear about is what would happen to existing shares should RBS be split into a "good" bank & a "bad" bank. Would they effectivey become shares in the good bank only, the bad bank only, would portfolios be split so holders have shares in both ...?

Anyone know?

I guess you might either get some shares in both. I suspect that it might be more likely the bad bank is somehow retained by the government or sold for a nominal fee. I cannot see that part of it having much value.

IronWolf

wary wrote: »

I also hold shares in RBS at around the 40p mark and agree that full nationalisation seems highly unlikely.

However, one thing I'm unclear about is what would happen to existing shares should RBS be split into a "good" bank & a "bad" bank. Would they effectivey become shares in the good bank only, the bad bank only, would portfolios be split so holders have shares in both ...?

Anyone know?

You'd get shares in both and the market would price them separately.

ideal_knowledge001

Thanks everyone for your responses, it has been helpful.

Another question I have from this is how would I know if I will possibly lose my money?

For example I have been told nationalisation is unlikely but if they do not nationalise how else would I lose my investment?

Would you take your money out at a loss from RBS right now?

opinions4u

IronWolf wrote: »

You'd get shares in both and the market would price them separately.

I'm not sure you would.

The pile of dung half would have no value.

planteria

ideal_knowledge001 wrote: »

Do you feel RBS will be nationalised?

absolutely not.