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

ideal_knowledge001

planteria wrote: »

absolutely not.

Why do you think that? Also is there any other way a shareholder can lose their money within RBS if they don't nationalise?

ideal_knowledge001

IronWolf wrote: »

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

IronWolf what would you do keep the shares in RBS or take them out, what would be your reasons behind it?

Thank you

wary

ideal_knowledge001 wrote: »

Also is there any other way a shareholder can lose their money within RBS if they don't nationalise?

Yeah, sell them at a loss.

Appreciate it must be unnerving for you, losing so much money on these and watching them slide further, but it is only a technical loss until you sell at a loss. They're very unlikely to be nationalised, and if they do fall back significantly further then maybe consider buying more to lower your average.

But what do I know. It would be nice to find someone with a crystal ball who can tell us RBS holders exactly how to get our money back, but unfortunately no one on this forum has such foresight, so would your really sell at a significant loss if someone advised you to?

ideal_knowledge001

wary wrote: »

Yeah, sell them at a loss.

Appreciate it must be unnerving for you, losing so much money on these and watching them slide further, but it is only a technical loss until you sell at a loss. They're very unlikely to be nationalised, and if they do fall back significantly further then maybe consider buying more to lower your average.

But what do I know. It would be nice to find someone with a crystal ball who can tell us RBS holders exactly how to get our money back, but unfortunately no one on this forum has such foresight, so would your really sell at a significant loss if someone advised you to?

Thanks for the reply, the thing is I am thinking of selling them at a loss the reason is for a down payment towards a house. I am hoping in the next month or two if it maybe hits the 30p-33p mark then I could sell it at the less loss but not 100% sure. I know in the past it went up to 50p and then down to 17p now around 27p. If it hits 37p I break even so I am really lost with RBS. They will suddenly announce a good quarter with profits and share prices will go up likewise they will announce something poor and share prices fall down so this is making me think whether to sell at a loss or not.

sabretoothtigger

i think those prices need to translated by x20 for the market price now.

opinions4u wrote: »

I'm not sure you would.

The pile of dung half would have no value.

IronWolf wrote: »

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

The bad bank would be illiquid so no shares. RBS would sell already if they could, DLG and similar assets are where you do see shares but they are the crown jewels in comparison

Barclays has a bad bank and in that case you just buy the main share which in turn has an interest in that spun off plague ridden ship of death
Its improvement to do as such because this separate unit has now limited liability with Barc still hoping to retain a interest on profits.

If we get inflation of 7% a year for a decade then even the junky house bonds should be good as land does appreciate eventually. Ie. the mortgager defaults but the underlying security holds land so its good one day. This didnt work in Japan as the Yen has been so strong, so land was never worth having

Santander has a model where it sells shares in each unit it holds, however they are not splitting it up just dividing by country mostly. So good and bad, dont think RBS can do that though UK gov insists they ditch USA banks they hold which may be feasible in this way. IE. you could have some USA shares eventually

Wywth

ideal_knowledge001 wrote: »

Why do you think that? ...

Beacuse it already is almost nationalised. The government/taxpayer holds about 84% of the shares I believe.

The plan is, and always has been, to eventually sell the bank (one way or another) to give the taxpayer their money back ... hopefully with interest.

Wywth

ideal_knowledge001 wrote: »

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

If you buy shares in any compnay, there is a possibility you will lose your money!

I would have hoped you understood that before you invested.

Never invest more than you can afford to lose.

The value of your investments can go down as well as up. You may not get back all the funds you invest. .... etc, etc, etc.

ideal_knowledge001

Wywth wrote: »

If you buy shares in any compnay, there is a possibility you will lose your money!

I would have hoped you understood that before you invested.

Never invest more than you can afford to lose.

The value of your investments can go down as well as up. You may not get back all the funds you invest. .... etc, etc, etc.

Thanks for your response, I understood that ofcourse an invested amount can be lost, but with RBS I am confused if they don't get bankrupt or fully nationalise I have been told I won't lose my investment so that's what I mean as in can I still lose my investment some other way.

Reaper

ideal_knowledge001 wrote: »

I am confused if they don't get bankrupt or fully nationalise I have been told I won't lose my investment so that's what I mean as in can I still lose my investment some other way.

The values of the shares can continue to fall because nobody wants them, or because the government is about to flood the market selling theirs, or because they issue more shares to raise money and so dilute your shareholding. But no, the value of your shares should not drop to completely zero unless they face going bust or get nationalised without compensation.

IronWolf

ideal_knowledge001 wrote: »

IronWolf what would you do keep the shares in RBS or take them out, what would be your reasons behind it?

Thank you

I don't think theres a huge danger of you losing money long term, but the share price could go down short term. Depends how long you're willing to wait and how much paper loss you can tollerate.

I'd be tempted to set a limit order at break even and just leave it for a few months see if it triggers.