One of the biggest problems the banks made for themselves was the judicial review which they lost. During the review they were stacking up PPI complaint but as soon as they lost it, they realised they didn't have enough time to review all the complaints they had been stacking up for months so they auto redressed them instead of trying assessing each case individualy. This was the reason for the huge provisions and cash burn at the start of the saga
Thanks I feel happier.It is just that I have friends in the bank and they said that not all the paper work was available and it was easier and quicker to pay all claims without checking. Hence my annoyance and note. I see someone else has commented re PPI payments to those who knew what they were signing. One should always read the small print before signing anything. What is the expression - Ignorance of the law is no defence. Why could it not apply here?? GLA - See we are recovering early losses.
The current SP reflects the value in LLoyds but there is still plenty of scope for the SP to move forward even if there is more PPI to pay out, and there will be. It is this cheap share SP that is attractive .
When the Government (with our money) bailed out LLoyds to the tune of £20 billion they would not have forseen the £10 billion that would be paid back in to the economy through the PPI scandal. Even though 20% of this is for processing costs, a good part of it is in salaries that are taxed and then the remainder ploughed back in spending in one form or another. It has become a real cash cow for the Government and a filip to the economy. They have no wish to see it stopping and what do they care about Lloyds' shareholders.
By the time of the election, the Government will have recovered a small profit on the share sale and a massive £10 billion into fuelling the recovery. It's a win win for them, but at a cost to everyone who owns a portion of Lloyds. What I see going on is every bit as distasteful as the misselling.
Lots of news around on Lloyds and the mood is one of frustration I think - success thwarted. Contrary as it seems that surely must be a good time to be in Lloyds for medium to long term buying and investment after picking a dip ? Not so much for short term gain maybe unless by trading? People will expect to pay a much discounted price just now surely at the moment with all this going on, the various risks and barriers and the uncertain impacts of share sales imminent. Settle the sales - get beyond the impairments and costs to a large extent and let it get back fully into harness and the share will prove a good long term bet. With risk comes low cost supposedly and for Lloyds both the promise and the risk are there.
The bonus news is becoming beyond ridiculous - and the people taking them alongside their salaries are looking like fools (IMHO) - albeit vastly wealthy ones. There will surely come a time soon when a board or the shareholders of a company will demand an ethical approach which knocks bs pay on the head AND genuinely ties more modest remuneration to truly sound performance. It would be nice to think that would happen and then that the practice would spread. There can be no justification for such - and because others get away with it makes it no less wrong. The lack of true accountability its all supposed to be for is prove to be bs too - they just walk away.
The banks should not be penalised for past misdemeanours - the bosses should. Eric Daniels getting attention www.ibtimes.co.uk/mis-selling-ppi-scandal-ex-lloyds-boss-eric-daniels-faces-losing-2010-bonus-insurance-compensation-1436377
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.