Member Info for stagecoach

JPM was referring to the American Market only. The US Mortgage Bank Model differs vastly to the UK Mortgage Market. They make their profits by selling their loans into the secondary market to banks like RBS. We all know what happened to RBS in 2008 as a result of this practice

In the past higher interest rates have generally been good for banks. I was only merely pointing out the downside, and the possible consequences of higher interest rates on the UK economy and banking system at present. However today we live in a very different world from the past both in political and financial terms. The world economy is still on a knife edge and any sudden jolt to the International Monetary System like higher interest rates could send the world economy into irreversible decline. You are right RBS are as cheap as chips at the moment, until the litigation issues have been clarified they will remain so, An 100% rise in the share price from to days closing price of 28P in the next 18 months will do for me.

Higher interest rates usually lead to a fall in an economies Aggregate Demand (Growth and Spending) resulting in higher individual consumer and company debt repayments, which ultimately then leads to more mortgage and company loan defaults, and failures, racking up huge liabilities for the Banks absorb not to mention higher unemployment and Government debt repayments and lower tax receipts and exports. These are some of the reasons why there have been no calls for a rise Interest rates over the past 82 months.

A very decent rise in the share price today. The stress test results will have will have eased investors fears to a certain extent. Lets hope it is the start of a prolonged cyclical upturn ( or Santa Rally if you like) for the Banking Sector, that has now been long overdue, and will carry forward momentum into the New Year. The last few months have been extremely frustrating for both Day Traders and long term shareholders.

The share price just managed to stay above the 300P level at close of trade today. I expect all the major Banks with the possible exception Barclays who have capital requirment issues to scrape through the latest Stress Tests when the results are published tomorrow. The RBS share price has been very disappointing all year, after the promising start we saw at the beginning of the year, the current share price bears no relation to where RBS is currently at in the recovery curve at the present moment. However i am still very confident for the future prospects of this Bank .

To be quite honest i dont know where the bottom is with this share at the moment. Good price for new entrants and exsisting shareholders topping up who have the funds available to do this, unfortunately bad news for the rest. may be a small drop tomorrow with Banking Sector stress testing results due out on tuesday.

Yes Jings i understand what you meant. With Osborne implementing this report. it is a major factor in 25% fall in the share price we have seen this year leaving the Bank grossly undervalued. Although all UK bank stocks are well down this year this should not be the case for RBS who are supposed to be in recovery mode and at this stage of the recovery RBS should still be around the 375P- 400P. You are right the City boys did do alright out of the report. Probably purchase a further tranch this week if share price falls below 300P.

Jings i am fully aware of the Rothchild Report and its Free Float theory. To offload a huge tranch of shares to institutional investors at a massive loss in the hope it will enhance future share sales i find it difficult to comprehend and totally unaceptable and detrimental to the UK taxpayer and existing shareholders. The implementation of the Rothchild recommendations have been disastrous for the RBS share price. Resulting in institutional investors now giving this share a wide birth in the expectation of picking this bank up for peanuts in the future. Osborne has now probably realised his mistake and now, will be unable sell any further tranches for quite some considerable time to come with out incurring more multi -billion pound losses on the UK taxpayer. The RBS share price and its marketability for future share sales will only rise on projected income and profits forecasts, not on this dubious and flawed Rothchild Report HMG had commissioned and paid for.

The shares you are refering to were probably purchased by FSTE100 tracker Funds. I regularly invest these in Funds. They are an excellent choice of investment especially if you are a risk averse type of investor, they can also be quite profitable. Worth looking into The RBS share price at the moment is absurdly low (30P Pre Consolidation Price) partly due to the unknown final bill for the litigation issues. George Osbornes ill thought decision and now U-turn on his decsion to begin the sell off, of RBS shares to the private sector before the bank had fully recoverd. and the fact that the UK banking sector is currently and cleary out of of favour by both private and institutional investors alike. Until then RBS will carry on quitetly building up its Capital postion. In 2016 i believe investors will finally at long last see real postive progress on both the litigation issues and the share price after so many false dawns in the past.

I have been a keen investor in the UK bus companies for the last 15 years . My main concern for this share now and the UK bus industry in general is the withdrawl of the senior citizens bus pass after next years general election and the introduction of more local authority bus regulation. On the positive side falling fuel prices and a possible revisit of a merger or takeover by National Express could be on the cards again. I sold out of this share in May of this year if the price drops further i am willing to invest in this share again. although there is unlikley to be a dividend for quite some time to come.

If you read my article i published on the HSBA board 3rd october you will find there many of the reasons why this share price is diminishing and and can only be partly rectified by a deeply discounted rights issue. This bank like HSBC is a complicated mixture of businesses, offices and banks around the world which are now subject to costly increasing regulations in each country they operate in.It is very hard for the ordinary investor to understand. The only saviour now for this bank is a possible takeover by a large Asian bank.

The Qataris are not stupid they know excactly the plight the big four supermarkets find themselves in. Anyone who buys this share on take over speculation are complete fools. Their real estate is virtually worthless what other profit making business could you use them for. Some sites may be suitable for housing but the house builders would want them for a tiny fraction of what they are worth even if Planning permission was granted. The way we shop and the way we do our Banking are changing for ever the days of these great profit making institutions are over.