Member Info for bigsmoke

JPM ups to 7.5% !

7.5%

More R2R !!

oh la la

Do you hear what I hear

Expecting big drop.

Covid deaths, 36% reduction in revenue, debt ballooning to £660m . Can’t see way out here.

GULP!!

Voleon Capital Management LP down 0.15%

Connor, Clark & Lunn Investment Management Ltd METRO BANK PLC GB00BZ6STL67 0.89 14/07/2020
ENA Investment Capital LLP METRO BANK PLC GB00BZ6STL67 1.64 19/06/2020
ODEY ASSET MANAGEMENT LLP METRO BANK PLC GB00BZ6STL67 4.30 12/06/2020
Voleon Capital Management LP METRO BANK PLC GB00BZ6STL67 2.23 21/07/2020

which resident expert has woken up today?

to repeat:

"I worked in group risk when we did all the work to get RBS group approved for AIRB at a group level. So, I kind of know it. "

"For the record, if we get AIRB, which we're working towards, it's worth 200 to 300 basis points "

"... you're all bright enough to know that actually I would build a different balance sheet if I wasn't going to get AIRB."

"So, if it became very clear that we were not going to get AIRB over the next year, [by feb 2021]"

"... I fully understand the reason that we're trading at 0.2 of book or slightly below 0.2 of book is not because actually the financials warrant it, it's not actually because the balance sheet warrants it, .. "

ZC - it is great news indeed, and exactly what is needed. There is a hint that a new methodology might be in pipeline. If so, could be this year. If not, then AIRB could be this year also. Why? 1/ because of the terms of the government loan scheme. 2/ i think Dan mentioned in Feb about this or next year.:

"There's a few upsides in this plan. One of the biggest one is I didn't put AIRB in the plan. Because I think it was inappropriate for us to put a plan together that we couldn't deliver. And I can't promise you I can deliver AIRB. I'm doing all the work ... I was at RBS and I worked in group risk when we did all the work to get RBS group approved for AIRB at a group level. So, I kind of know it. The reality is I think the work we're doing is good work. But I don't know, it's up to the regulators. It's within the regulators' gift whether they give it to us or not. So, this plan assumes that it doesn't have it in it. For the record, if we get AIRB, which we're working towards, it's worth 200 to 300 basis points on the RoTE so your RoTE goes from 8.5 to 10.5 to 11.5. It's a lot."

"... I think you previously indicated not before 2021."

"So, if we really didn't believe we were going to get AIRB, the balance sheet I laid out for you is not the balance sheet I would build. Fundamentally you're all bright enough to know that actually I would build a different balance sheet if I wasn't going to get AIRB. So, if it became very clear that we were not going to get AIRB over the next year, by the time we stand up again in July, which we might not have confidence. But by the time we stand up next year around this time again we would be talking to you about a different asset strategy, which I accept.

"So, at this point hopefully it starts to restore some of the credibility because I fully understand the reason that we're trading at 0.2 of book or slightly below 0.2 of book is not because actually the financials warrant it, it's not actually because the balance sheet warrants it, it’s because we have fundamentally lost credibility with the market and we need to let you know and be fully transparent with where we're headed, so that we can start to restore that credibility because this business actually can make a lot of money and it can make a lot of money going forward because it's broadly a fixed cost model that will eventually lever up."

https://uk.reuters.com/article/us-boe-banks/boe-seeks-more-level-mortgage-playing-field-for-small-banks-idUKKCN24N1CJ

LONDON (Reuters) - The Bank of England may introduce more flexible rules on the capital that small banks must set aside against mortgage loans, to help them compete better in a sector that has long been dominated by Britain’s big lenders.

Big banks can use their own models to determine how much to set aside against mortgage defaults, while smaller lenders must use the regulator’s guidelines, which typically means holding more capital.

A simpler but still robust capital regime for smaller banks could promote competition, Sarah Breeden, the BoE’s executive director for UK Deposit Takers Supervision, said.

“We are considering, in particular, whether there might be scope to introduce a new regime for smaller banks following Britain’s departure from the European Union,” Breeden said.

Her comments came in a speech released on Wednesday, as the central bank published a consultation paper setting out a more defined regulatory approach to new and growing banks, such as simpler capital calculations.

Of the 22 new banks authorised since 2013, many seemed to have underestimated what was needed to become successful, Breeden said, adding that 20 more potential UK start-up banks were in the pipeline.

Challenger Metro Bank is being investigated by the BoE over an accounting scandal.

None of the new arrivals threaten HSBC, Lloyds, RBS and Barclays, the four major banks that dominate mortgages, deposits and business loans in Britain.

Breeden said the BoE had been reviewing how to reduce the “unwarranted benefits” of using models, including “the desirability of mortgage risk weight floors.”

Not all banks want to become a big player given the extra regulatory requirements they would face.

The UK arm of Goldman Sachs’ Marcus digital bank closed to new business in June to avoid reaching a threshold that would force it to become a separate, ring-fenced entity, a costly undertaking.

https://twitter.com/Metro_Bank/status/1285533792413855744

.

"At least I ain't full of BigBullsh**."

please explain. before the matter is raised with admin.

"Don't be afraid to top up"
- you know the rules prohibit investent advice, right?

seems to be a blockage!

topped up

gap closed. on way up.

no short changes for 1.5 months. surely time there was a review at their end?