D-Day Approaches for Royal Bank of Scotland
They may have been the first to test the market’s resolve to bail the banking sector out of the current crisis, they may have priced the fund raising at an attractive price but there are still many in the City that are not convinced about the long term positives of the Royal Bank of Scotland fund raising. Initially the move to raise £12 billion in new capital and strengthen the balance sheet was well received but is seems that some investors are starting to think again.
Decision day for shareholders looking to take up their new rights issues shares is Friday at 11am and while the company seem to have sufficient institutional support to see the issue through there are concerns than a significant amount of shares will be left with the underwriters.
The problem for those institutions that signed up to underwrite the issue is the further fall in confidence and the economy since the issue was first announced. We are seeing gloomy reports about the prospects of the housing market, concerns that the UK is on the verge of its own sub-prime mortgage crisis and a government that has lost the confidence of the City.
This week will be a very important few days for not only the banking sector but the London Stock market as a whole.
Share this..
Related stories
Insurance warning from esure
In-store insurance policies should be avoided if consumers want to save money, esure has warned.The insurance company has conduced research which found that nearly a quarter (23 per cent) of Britons buy extra insurance for products bought from a retailer.However, of this group, 3.3 million already have home contents insurance, meaning the extra cover is useless.The company warned that buying unnee...
Read MoreIt is now the time to look longer term with your investments?
As we touched on in our ISA post early today, the deluge of negative and depressing headlines in the financial press have effectively turned off many people at looking towards the future. However, as we approach the end of UK tax year it is vital, as it is every year, to ensure that your various allowances are taken where appropriate and you still continue to manage your investments for the medium...
Read MoreBudget Headlines : UK economy set to increase by 3.5% annually from 2011
UK economy set to increase by 3.5% annually from 2011...
Read MoreQatar Holdings reduces stake in Barclays bank
Qatar Holdings (the investment vehicle of the Qatari royal family) has today announced plans to reduce its significant shareholding in Barclays bank. The group will exercise various warrants to acquire 379 million shares at an exercise price of 197.55p and fully intends to sell the shares into the open market. As a consequence, Barclays bank shares fell by just under 5% this morning although this...
Read MoreLifetime pension allowance a threat to retirement income
Research from insurer Zurich has suggested that a failure to increase the lifetime pension saving allowance could have big implications on the amount future generations will receive as an income in retirement. The research, which has now been released as a report, has produced data based on a joint life annuity, and takes into account the effects of inflation escalation. This shows that the cu...
Read More