Dividend Complaint letter to PRA20 Aug 2020 18:38
19th August 2020
Dear Mr Moore,
Lloyds Share Price & Dividend Complaint
Thank you for your letter dated 13th August 2020
The position with the large UK banks is impossible, analysts and fund mangers state the sector as “uninvestable” due to constant negative regulatory pressure and higher, than other stock market listed companies, fees and taxation on profits.
Why is this sector singled out and dictated to in this way?
Regulation is understandable in all industries, the share prices of the UK banks clearly reflect an industry on its knees, albeit with the economy, again!, unable to cut costs due to negative press this may have, but other companies can do this, why are the banks unable to reduce their costs in the same way as other companies?
The capital buffers that the banks are now mandated to hold, plus “the boards buffer” is clearly substantial, able to deal with any extraordinary impact to the UK and world economy as proved by the stress tests.
What would be the positive impact on the economy be if these reserves could be reduced to boost spending by dividend payments and confidence building in our banking sector by allowing share buybacks?
Does the BOE trust the banking sector’s CEO’s to distribute these benefits to the economy? The banks cannot be blamed for everything forever! If the regulators dictate to banks why do they need CEO’s and their salaries? £12 million plus?
Why has the PRA/BOE not heeded to its own policies? again this generates a lack of confidence in the sector. i.e. Legal and General have paid a dividend?
Shareholders and staff incentive programs from before the Financial Crisis have been decimated from the takeover of Halifax Bank which was directed/orchestrated by the UK Prime Minister, Gordon Brown, Chancellor Alistair Darling, Lloyds Banks Eric Daniels and Victor Blank.
Are the banks reserves being used proactively? Is the PRA, BOE, Chancellor and the Prime Minister open minded and positively considering the banks as a source of wealth generation by creating confidence, in turn, investment in UK bank shares, instead of fines and compensation, many of which may have been spurious. Anyone can invest in the stock market and an increasing amount of retail investors have since March 2020.
When will the UK be a leading economy? a strong and fair society, allowing the hard working, able retail investor to enjoy the benefits of investing in a chosen sector that due to “sensible” financial buffers provides consistent and comparable security and returns.
If the UK government wants the banks to lead and provide a utility type approach, a government fully owned bank (purchase the remaining shares in RBS/Natwest) and lead the way and create competition by setting competitive loan, mortgage, credit card and current account interest rates.
Is the above too simplistic for the government to have thought of?
We are and have always been UK tax paye
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