More massive losses at Royal Bank of Scotland

[bkkcanuck8]

14 minutes ago, Grouse said:

 

Of course Brexit the fact is having serious consequences now:

 

pound dropping

 

interest rate cut by 50%

 

lack of confidence

 

Inward investment delayed

 

I did not vote for this

 

"suck it up Brexiteers" to coin a phrase

 

 

I did not say it would not have an effect on the economy, just not the bank profits at this point to the extent that it is being blamed as a reason for a sudden drop in bank profits.   

 

- Interest rate cut by 50% typically will raise profits during the initial period since with interest rates so low the banks would be slow to pass it on.  The cost of money would drop 50% while they would continue charging the same interest rate at this point.

 

- The pound dropping would not affect domestic asset prices at this point and would actually make offshore assets worth more in GBP.  

 

- It would take time for drop in housing prices to be translated into bad mortgages which would weigh on the bank profits.  

 

I would not have voted for brexit if I were to have a vote....  so telling me to suck it up brexiters is rather silly to say the least....

[Grouse]

6 minutes ago, bkkcanuck8 said:

 

I did not say it would not have an effect on the economy, just not the bank profits at this point to the extent that it is being blamed as a reason for a sudden drop in bank profits.   

 

- Interest rate cut by 50% typically will raise profits during the initial period since with interest rates so low the banks would be slow to pass it on.  The cost of money would drop 50% while they would continue charging the same interest rate at this point.

 

- The pound dropping would not affect domestic asset prices at this point and would actually make offshore assets worth more in GBP.  

 

- It would take time for drop in housing prices to be translated into bad mortgages which would weigh on the bank profits.  

 

I would not have voted for brexit if I were to have a vote....  so telling me to suck it up brexiters is rather silly to say the least....

 

Your comments are quite correct!

 

My comments were not aimed specifically at you and I withdraw my barb!

 

I quoted rather than added reply...

[puukao]

i sold 10,000 loans to people i never cared about.  i think 90% are homeless now.  i made 4 million pounds and now retire in a mansion!!!!  i then go onto websites and yell at this bad bankers!!!  someone asked me what i did for a living?  i said i helped the homeless!!!!

 

life isn't fair......

[dick dasterdly]

22 hours ago, billd766 said:

 

It won't do the EU or the UK much good and if they do fail the knock on effects will be felt worldwide and not in a good way either.

 

What do I know anyway? I am not a financial guru but I have been declared in other posts ad an ignorant, unwashed peasant who knows nothing about the world of finance.

 

If that is true then it doesn't say much for a great numbers of bankers does it?

 

At least I haven't been able to lose over £2 billion pounds of other peoples money, brought down a bank (Nick Leeson at Barings bank) or Kweku Adoboli who lost over $2 billion of the USB Switzerland's money.

The joys of globalisation and the casino economy too prevalent within banks .

[dick dasterdly]

On 8/6/2016 at 10:00 AM, Rancid said:

I hope this doesn't affect bonuses.

To look on the bright side - the last time many banks crashed, they were bailed out and bankers' bonuses were pretty much unaffected.

 

So its unlikely their bonuses will be affected this time either.

[manfredtillmann]

23 hours ago, elgordo38 said:

All the banks around the world are in trouble. Italy is in the forefront. Deutsche bank is in trouble with these low to negative interest rates they cannot make any money and besides governments are finally getting off of their derriere and coming down hard on them for all the chicanery they have been involved in over the years. My advice is to join the stock market brigade and prop up the markets so these darlings of free enterprise can survive to rape us another day. The banks learning curve has been replaced by raw and naked GREED!! 2008 is playing itself out all over again. The banks are doing the usual getting rid of honest employees who had nothing to do with the mess they are in. CEO'S however will continue to accept their elephantine pay checks and bonuses while their poor employees will visit the food banks. Just be careful that when the music stops that you can find a chair to sit on. 

all the banks?

http://www.abc.net.au/news/2015-05-08/australian-bank-profits-in-pictures/6454428

i know the link is a year old but nothing has changed.

if you can extract that much 'profit' out of a 22 million people nation... what are all you others doing wrong?

as for investing in the stock market there are plenty of orphans around who will tell you why their fathers should not have.

just check it out, ok? if you invested a single $ in real estate in oz some 30 years ago compared to the same $ in 'blue chip'?  i leave that with you to contemplate.

 

[Baerboxer]

On 8/6/2016 at 10:22 AM, bkkcanuck8 said:

 

Why are your banks still hemorrhaging?  I thought they were recapitalized during the nationalization /  bailout.... 

 

Canadian banking market place is a fraction of the size and yet the banks are still making a profit of around 1.1B to 2.7B (GBP) during for the same period.  Mind you the Canadian banking regulations and culture tend to be more conservative -- just because any of the big 5 banks flopping would effectively kill Canada economically...    I personally think the banking regulations should force banks to become more conservative the larger they are (variable regulations depending on size); and/or more risky areas of the business (that would require a bailout) be separated from the more conservative side that cannot be allowed to fail. 

 

RBS were considered conservative and were also considered a buzzword for prudence and sensible financial management. The history of Banking in Canada is very different to that of the UK, other major European countries and the US. Canadian banks are not major global banks like the others and there wasn't the scope for exploitation, greed and mismanagement. Sadly, the scope is still there and despite new regulations people are still earning big bonuses, accumulating high risk loans and rewarding themselves with inappropriate bonuses - all at the tax payers expense. RBS was the worst of the UK ones and trying to turn it around must be like pissing in the wind without some real significant legislative changes and practices.

[Basil B]

4 hours ago, SgtRock said:

 

RBS's trouble is nothing to do with Brexit.

 

It is the result of fines for dodgy banking practices going back almost a decade.

 

Jesus H Christ, I just had a dose of the skitters, was that to do with Brexit or the curry I had last night ?

I would say the last straw on the camels back...

 

Again the bank has not collapsed, but more money needs to be pumped in to save it.

 

The real problem is the way banks are run, no longer answerable to to smaller share holders as deals are done with large institutions (many are other banks) who hold big blocks of votes keeping over paid and poor preforming directors in their jobs.

 

What annoys me here is the UK Gov is by far the largest share holder, why are those incompetent fat cats still in the board room??? 

[ilostmypassword]

4 hours ago, manfredtillmann said:

all the banks?

http://www.abc.net.au/news/2015-05-08/australian-bank-profits-in-pictures/6454428

i know the link is a year old but nothing has changed.

if you can extract that much 'profit' out of a 22 million people nation... what are all you others doing wrong?

as for investing in the stock market there are plenty of orphans around who will tell you why their fathers should not have.

just check it out, ok? if you invested a single $ in real estate in oz some 30 years ago compared to the same $ in 'blue chip'?  i leave that with you to contemplate.

 

I know that in the USA you would have been far better off investing in a stock market index fund than investing in real estate.

[ericthai]

4 hours ago, ilostmypassword said:

I know that in the USA you would have been far better off investing in a stock market index fund than investing in real estate.

Just like the Stock Market it all depends when you got in and when you got out of the realest market. I know several people that did very well with real estate.