Investor, by their write-downs so shall you know them: Lloyds was least willing to absorb a punch. Might the bank helmed by Antonio Horta-Osorio be just a tad sensitive to criticism? It set aside another £600 million to compensate customers who were mis-sold insurance and paid £226 million in fines for rate fiddling. Half year pretax profits dropped 60% to £863 million partly as a result.
On that count, Portugal’s Banco Espirito Santo utterly failed in the half year results which it released on Wednesday.
Over recent weeks not one but three holding companies in the parent Espirito Santo Group went into creditor protection (carelessness rather than misfortune, Lady Bracknell might have said).
BES’s announced losses actually were much worse than whispered: €3.5 billion versus €3 billion. BES booked €2 billion alone in provisions for its exposure to the parent group – which had survived revolution, nationalisation and the Eurozone crisis – collapsing around it.
The drop in core capital is €4 billion; the capital ratio falls to 5%. BES revealed that it had sold bonds at discounts to special purpose vehicles which recently installed management had been unaware existed. A provision for possibly having to buy the bonds back is at least €1.2 billion – but final numbers still seem elusive.
There goes rule number two. The Bank of Portugal has now ordered BES to raise capital. But how? BES’s shares retain a €1.2 billion market capitalisation. So someone must think a rescue (of perhaps €4 billion or more to restore previous levels) is possible without wiping out equity.
Helloooo ! Those incredible sleuths at the FT have come up trumps again . Shock horror really ? I hope the boys in the FCA a nd PRA manage to read their office copy of the FT and read the article so they learn something. Those stupid muppets would not know money laundering if it slapped them in the face. Rather they spend up all their time devising questions would be house buyers have to answer like how much do you spend on pet food or sexy lingerie. Well done FT for some razor sharp analysis LOL
At least £122bn of property in England and Wales is held through companies in offshore tax havens where ownership is difficult to trace, a Financial Times analysis of Land Registry data has found. The figure – more than the total value of all housing stock in Westminster and the City of London – reveals for the first time the detail of the scale of offshore property ownership in the UK. It raises concern that London property in particular has become a haven for dirty money from around the world.
As SCFC says they offer contrarian views at the same time. They've been consistently advising readers to put their faith (and money) into Tesco......all the way down from three quid. After such bad advice they yesterday told their readers to "not touch Tesco with a barge pole".
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