Royal Bank of Scotland moves to break even for UK government
The UK government's stake in Royal Bank of Scotland this morning moved to breakeven amid signs that the company may well have turned the corner. It seems a mixture of a positive research note from Bank of America Merrill Lynch and the potential to claw back some of an $840 million fee paid to Goldman Sachs some time ago has improved sentiment towards the stock.
Whether or not the UK government will soon begin to reduce its stake in the company remains to be seen but what would Gordon Brown give for a multibillion pound profit just days before the election?
It will be interesting to see how the government strategy regarding the stakes in Royal Bank of Scotland and Lloyds bank changes after the election because ultimately it would be a very good PR swoop to sell off the stakes at a profit. Then again the UK stock market has been so volatile of late it is not guaranteed that the share price will crystallise a profit in the short to medium term.
The bank bailout is still very much at the forefront of many taxpayers minds with household budgets under pressure, businesses struggling to expand yet the banking industry apparently back to the boom times.
Share this..
Related stories
Lloyds bank shareholders call for total clear out
Just 24 hours after it was announced that chairman Sir Victor Blank will be leaving Lloyds bank next year, there are growing calls for a total clear out of the top brass at one of the U.K.'s leading banking institutions. This is a company which for many years was renowned as one of the most conservative in the sector although the disastrous merger with HBOS has dragged the company down resulting i...
Read MoreRepossessions set to increase as Madoff losses kicks in
Speculation that Santander, the owner of Abbey National and Bradford & Bingley, has losses approaching £2 billion from the Madoff investment fund collapse and suggestions that the likes of Royal Bank of Scotland have lost potentially £400 million have grabbed headlines over the last few days. But who will ultimately pay for these losses?
There is immense speculation in the financi...
Bradford And Bingley Deal Is Officially Off
Having affectively given up the chance to join a new wave of consolidation in the financial sector, the board of Bradford and Bingley today stepped forward to give its reasons for refusing Resolution Group access to the company’s books. The board has come in for heavy criticism of late over their refusal to open their books to the potential partner, while at the same time giving US outfit T...
Read MoreBulk Of Bradford And Bingley Rights Issue Left With Underwriters
It has been revealed that a staggering 72% of the shares on offer in the Bradford and Bingley rights issue have been left with the underwriters. While the figure is better than some of the more recent rights issues in the sector it still leaves a very large over hang of stock for the market to absorb before you would expect the share price to move ahead.
The news of the low take up...
British Airways tables new offer
The management of British Airways have today tabled a new offer for the company's 11,000 cabin crew which were due to be balloted about a third course of strike action by the Unite union. This comes just hours after the company had made public its bid to take on a further 1,250 new cabin crew on significantly worse terms than the current workforce. So could this be the end of the strike? It is...
Read More