now then fred.....

Tories back Obama's bank limit plans


Mr Osborne said the Conservatives would follow the US lead.

Shadow chancellor George Osborne has told the BBC that if the Conservatives win the general election they will copy US plans to limit the size of banks. Under the proposals outlined by President Barack Obama, US retail banks will face curbs on their riskier activities.

This could lead to the largest US banks being broken up.

The Treasury said it would consider President Obama's comments on bank reform "very carefully".

BBC business editor Robert Peston said Mr Osborne's comments would "generate profound fear in the boardrooms of Barclays and Royal Bank of Scotland".

Shares in both banks fell sharply on Tuesday, with Royal Bank of Scotland losing 7% - the biggest decline on the UK's main FTSE 100 share index. Barclays lost 5.9%.

Under President Obama's proposals, retail banks would be banned from using their own money in risky financial transactions.

This would prevent them from investing in hedge and private equity funds, or engaging in so-called proprietary trading.

"This is a welcome move by President Obama that accords very much with our thinking," said Mr Osborne.

"I have said consistently that we should look at separating retail banking from activities like large scale propriety trading - and that this was best done internationally."

I await the Tory administration with ?

Osborne's economic insight is the flash of a "genie".

We will be safe in his hands with unemployment at 20% and interest rate at 15 %..
















Thank god genies don't exist.

I can see 60pit was the change from my baguette

Tabs, Lend us 30p.

8-)

Maybe, I will give you a LLoy sshare in exchange.

i

Seems that RBS & BARC have great exposure to the U.S. banking market. LLOY doesn't & therefore shouldn't suffer too much from the Obama proposed legislation.

Another MRSI success story?

Obama's politically motivated rhetoric will over time come to haunt him, he is attacking jobs and tax receipts...... what planet does he live on?

Osborne supports Obama's moves.

Should win the tories a few votes.


I wonder what the city will think of that,

Fix UK Banks like Obama would like to fix his....It would assist him, provide some amunition and who cares if Bankers get a Bonus?
So, - - - Good idea, otherwise US barrowboys (that's costermonger to you) will jet over here and sow the seeds of an even Grander Bailout within the next Decade, or two. =Very costly to Britain plc.

Also,
We could do with some old-fashioned RETRIBUTION against those that plotted their own success at the expense of ordinary taxpayers . . . and the lunatics that designed a large hole below the water-line in Good-Ship LLOY, (while she was tied up to weather the global storm, safe and sound earning her investors a decent return.).
Now look at her.... Listed at a curious angle!
First Step is RBS, IMHO, then NRK

Grr.

Perhaps others can suggest who and what . . . eh?

Broker note from Nomura this morning:
"We are resuming coverage of Lloyds Banking Group with a Reduce recommendation and a 53p price target. This assumes a multiple of 6.7x estimated normalized EPS. At near 7x normalized EPS, we estimate Lloyds is trading in line with the pan-European bank sector average on this basis.
We would argue this is unattractive for a group concentrated in the UK, where we believe medium growth prospects are likely to be weaker than average across Europe. We are cautious that revenue will grow over the medium term."

**hi
Looks like this banking group will recover,, iam a contrian investor, money to be made here ,,,, BUY!!!!!!,,,,,,,,,

**hi
Looks like this banking group will recover,, iam a contrian investor, money to be made here ,,,, BUY!!!!!!,,,,,,,,,

thats not the name i was thinking of..... but there we are
..
/
~

Broker note from Merrill Lynch today:

"Less than 12 months into a bull market we reinstate coverage of the UK banks with three new Buys and reiterate our Buys on HSBC and Standard Chartered. We think bad debts peaked in 2009 and that the funding markets can continue to improve. This is not in consensus. While BIS will add to volatility, in our view it is a dividend issue not a dilution issue. As confidence about the book value and RoNAV grows in 2010 share prices should re-rate materially we have an average of over 40% upside to our 12-month POs, but think the sector can more than double over the next few years.

Funding is the key to recovery.
The biggest change over the past six months relates to the outlook for funding, yet as funding costs continue to fall the market remains concerned. We are more bullish, seeing the return of RMBS in 2010 and demand for c.640bn of bank issuance. A re-opening of the funding markets is key to the outlook for margins, as it should considerably ease the pressure on banks to collect deposits and, together with a modest pick-up in base rates, pave the way for a recovery in deposit spreads. Combined with the normalisation of bad debts, RoNAVs should start to recover, we think to c.15-20%.

BIS more about dividend growth than NAV dilution.
Taken at face value, the sectors capital ratios take a big step back under the BIS proposals, but stay comfortably above 4%, which we see as the minimum. We think the debate is more about when banks will be able to pay/grow dividends again, not whether BIS will force them to raise capital. On our forecasts all the UK banks are above 7% core Tier 1 by 2012, implying a step-up in payouts thereafter

We reinstate coverage on Barclays, Lloyds, RBS at Buy.
In our view, the market is currently using 2010E ROE as its basis for valuation. If we are correct on margins and the likely pace of bad debt normalisation, Barclays, Lloyds and RBS should re-rate strongly as we move through 2010 and into 2011. Based on our analysis Lloyds is the biggest beneficiary of an improved funding environment and is our top pick with c.51% upside; we are 3bn above PBT consensus in 2010. We reiterate Buys on HSBC and Standard Chartered. Both banks should rebalance towards higher valued earnings in 2010, and provide stability and growth our preferred pick of the pair is HSBC, where we are c.30% above consensus in 2010."

Broker note from Jon Kirk of Redburn:
"Thesis: Upgrade to Buy. LBGs recent wholesale funding successes allied with in-depth analysis of long-term funding costs and loan pricing lead us to make a margin-driven c30% increase in 2012 EPS. Positive surprises in UK commercial property also meaningfully lower near-term impairment charges.

LBG is disproving the bear case by funding independently and economically. We calculate that LBG must issue 35bn of >1 year wholesale funding in 2010. In January alone LBG raised 23% of this without state support, including seven-year money at a cost of 130bp vs new mortgage spreads of 190bp.
Margin upgrade adds c30% to 2012 EPS. We take into account a more conservative liability structure and higher funding costs. Loan pricing estimates are based on todays new business, historic pricing and an ROE cross-check analysis. Together this leads us to add 30bp (15%) to 2012 margin forecasts

LBGs other big problem, commercial property, ends 2009 on a high. UK prices rose 8% qoq in 4Q09, supported by peak-cycle levels of investment. The benign impact on loan impairments of an upgrade to our commercial property price forecasts cuts 2010 EPS losses by 44%.
LBG is well placed to cope with regulatory challenges. LBG can absorb worst-case Basel 3 impacts (including the ban on double counting) and still maintain its equity tier 1 above 10.5%. The banks liquidity position is appropriate: we estimate that just 6% of loans will be short-term wholesale funded by 2012.
2011E tangible book rises 10% to 62p. Target price is 92p, 68% upside."

FFS 48p Results need to be better than expectedend of monthor Baler might be asking when 30p??? I wish you all luck.Obamas promise to limit the size of banks and restrictions on riskier trading.will harm these greedy bas*ards.He added he was ready for a "fight" with any banks prepared to lobby against tougher regulations...and we will follow perfect conditions for Banks to get beaten upand shorted down.hope I am wrong!

am quite concerned tabs.... i might have to buy somemore..... ;)

Fair play to you BByou got more bottle than me most investors were pissed off being turned over once. but those that fancy the win double???.shame on Bankers for cheating you onceshame on you for letting them do it twiceand they are so blasin the process