Morning broker moves round-up

RBS cut to underperform from neutral at Macquarie.

Lloyds upped to neutral from underperform at Macquarie.

        JOKE OF THE DAY

And only because of legal action .......... string him UP

Sir Fred Offers To Cut Pension

The controversial former Chief Executive of the Royal Bank Of Scotland,
Sir Fred Goodwin is offering to cut his pension by 200,000 a year ,
according to the BBC.

It is understood that Sir Fred offered to cut his pension when faced
with the possibility of legal action from RBS.

Having already taken a lump sum of 2.7m from his pension fund, the
offer to cut his pension by 200,000 a year would leave Sir Fred
with approximately 340,000 as a residual pension.

        MIDDAY MARKET REPORT

Lloyds Banking Group was an early blue chip leader, up 1.8p at 68.9p, while Royal Bank of Scotland
ticked up 0.2p at 37.2p and Asia-facing Standard Chartered added 19p at 1,170p.

Other banks fared less well, with Barclays off 7.5p at 262.5p and HSBC down 8.25p at 518.25p.

Banking reforms a must, says King

Tensions between the Chancellor and the Governor of the Bank of England were heightened last night, as the two presented contrasting views on the future of the regulatory system in their annual addresses to the City.

Speaking at Mansion House, Mervyn King called for the size of financial institutions to be scaled down with investment banking potentially split off from the retail side.

He said: "If some banks are thought to be too big to fail, then, in the words of a distinguished American economist, they are too big. It is not sensible to allow large banks to combine high street retail banking with risky investment banking or funding strategies, and then provide an implicit state guarantee against failure."

King also floated the ideas of riskier banks being forced to hold more capital or designing a comprehensive plan of action as to how the bank could be wound up in an orderly manner in the event it fails.

"Making a will should be as much a part of good housekeeping for banks as it is for the rest of us," he said.

His views were in contrast to those expressed by Alistair Darling who says the system needs to be tightened but not fundamentally reformed.

"Many people talk about how to deal with the big banks - banks so important to the financial system that they cannot be allowed to fail. But the solution is not as simple, as some have suggested, as restricting the size the banks," Darling said.

He wants regulators to consider the wider picture rather than concentrate on individual institutions.

"This crisis has taught us that it is not enough to pass an individual firm as healthy. Regulators and central banks need to look more carefully at the system as a whole."

However, he put the burden of blame firmly on the shoulders of the banks' boards rather than regulatory system, a view which King hotly disputed.

The BoE governor countered: "Blaming individuals is no substitute for acknowledging the failure of a system, of a certain type of banking. We have a real opportunity now to put that right and regain the trust that has been lost."

He also voiced concerns over the "limits" of the new powers awarded to the Bank since the downfall of Northern Rock. Although the Bank oversees financial stability, it falls to the Financial Services Authority to decide if a bank is failing.

"The Bank finds itself in a position rather like that of a church whose congregation attends weddings and burials, but ignores the sermons in between," he said.

"It is not entirely clear how the Bank will be able to discharge its new statutory responsibility if we can do no more than issue sermons or organise burials," King added.

thankyou for your help/

No problem

One is never to old to learn, wish others could do the same.

Doing some research has paid dividends, so I too want to contribute to this thread, as it looks like almost only - MRSI - is posting


Allianz: Expanding Presence Through UK Banking Giant
Thursday, June 18, 2009 1:51 PM

UK insurer Allianz Commercial has signed a deal with Lloyds Banking Group, giving the company access to Lloyds TSB's and Bank of Scotland's 850,000 small business customers. While increasing Allianz's presence in this competitive space, Lloyds Banking Group must ensure it can offer a competitive proposition if it is to succeed as an insurance distributor to small and medium enterprises.

Allianz Commercial's new partnership with Lloyds Banking Group will enable the insurer to increase its presence in the small and medium enterprise (SME) sector through increasing its distribution through banks. Indeed, the merger of Lloyds TSB and HBOS to form Lloyds Banking Group has created a banking giant in the UK, which services at least 850,000 small business customers. Partnering with such a giant will allow Allianz Commercial to quickly extend its distribution reach in the SME insurance market, which is already an attractive and profitable market. However, only a small proportion of SMEs currently purchase their insurance through banks, which is likely to limit the growth potential which the insurer can achieve through the partnership.

In addition, Lloyds Banking Group will have to sever the strong ties which exist between brokers and SMEs in order to maximize its potential as a distributor of insurance in the SME sector. According to Datamonitor research, SMEs have shown a strong preference for the broker channel when purchasing their insurance. In 2008, the majority of SME insurance was distributed through brokers, while only 5% of SME insurance was distributed through banks.

Nonetheless, research by Datamonitor has also revealed that up to 40% of SMEs are willing to consider purchasing their insurance through this channel. The majority of these SME respondents cited a cheaper product as the main reason for considering an insurance purchase from a bank. Thus, a competitive proposition would allow Lloyds Banking Group to succeed as a SME insurance distributor.

http://www.istockanalyst.com/article/viewiStockNews/articleid/3274420

and another one, but unfortunely not positive, but is something of the past


Bolton claims 80% of HBOS loans had no proof of income
Lee Jones - 18-Jun-2009
Former HBOS mortgage chief Michael Bolton has claimed that up to 80 per cent of mortgages lent by the group before the credit crunch were accep- ted without proof of income.
Bolton, who was managing director of BM Solutions, says: "HBOS had five brands, all offering products without proof of income. It was offering a lot of self-cert, a lot of buy to let that needed no proof of income and a lot of Halifax's mortgages were 'non-verified income' loans, which was essentially fast track.
"Before the credit crunch, as much as 80 per cent of HBOS' loans were going through without full proof of income."

The 2007 prospectus literature for one of HBOS's master trusts says: "During 2001, [HBOS] introduced a new automated system whereby the majority of mortgages are underwritten at the point of sale and do not make use of the traditional system of full evaluation by an underwriter."

Halifax would not comment directly on the issue but a spokesman says: "Our underwriting approach is carried out in a responsible manner. We have one of the best underwriting approaches within the mortgage market."

John Charcol senior technical manager Ray Boulger says: "A lot of mainstream HBOS loans were fast-tracked in the past, it went further than most lenders in that area of the market so I would not be surprised if 80 per cent were without full income verification."

New at - moneyam - so
I have to hand it to you ......Master RSI ......, you are an ace entertainer with your cartoons

keep it up but don't over do it
ready for bed so good night

Wellcome to this space cielo and thankyou, new and old should contribute with research but not all able to do that.

Anyway you may keep it up and then I may not be so lonely

An earlier 71p is a new Intraday high lately, last one was 70.50p a couple days ago, and the price at the moment.

...................... Intraday Chart ......................................................... 5 days ............

        FUN FOR THE DAY

Another CROOK on the dock

Stanford in court in massive fraud case

RICHMOND, Virginia (Reuters) - Texas billionaire Allen Stanford will
appear in federal court in Virginia on Friday to answer allegations
he orchestrated a massive fraud through his Antigua bank that bilked
investors out of millions of dollars.

BROKER CALL Lloyds remains key European pick at UBS
19 June, 2009

Broker remains buyer of Lloyds Banking Group with a target price of 107p, with the stock remaining a key European pick.

"Lloyds strong capitalisaton and participation in the UK Govt APS ensures that the group is able to withstand a greater degee of credit stress than peers. Moreover, APS participation will ensure that Lloyds impairment charges are more likely to be 'V' shaped than elsewher and that rising impairment at Lloyds is an issue that should not ultimately concern the market."

After moving to under 70p at one point, late this afternoon has gone into a spike that move it into 71.50 / 71.60p ( new Intraday high ), at this point it had difficulties on moving higher as it went side ways for a couple minutes and then lower again now 71.20p

Lloyds ADR ( on the US ) currently up 2%

big......big buy going in at the end of the day at 70p.....196 mill

watcher

US fund managers eye Lloyds' Insight arm -sources

Reuters, Friday June 19 2009

US fund firms consider bids for Insight
* Bids for the unit due imminently
* First round bidders pre-selected
By Victoria Howley and Simon Meads

LONDON, June 19 (Reuters) - U.S. investment managers are circling Lloyds Banking Group's third-party asset management arm, after rival BlackRock scooped up Barclays Global Investor, people familiar with the situation said on Friday.
Bids for Insight Investment's third party business are due imminently from a small group of pre-selected bidders, two people familiar with the process told Reuters on Friday.
"The pre-selected parties are mainly trade bidders. The process will be opened up more widely if the offers are too low," one of the people said.
Lloyds and Insight Investment declined to comment.
Offers for Insight are likely to be in the range of 150 million to 300 million pounds ($245 million to $491 million), the sources said.
As at March 31, Insight had total assets under management of 116.6 billion pounds ($190.7 billion), including 70 billion pounds managed on behalf of third parties.
Bank of New York Mellon Corp, which was bidding against BlackRock for BGI, was likely to make an offer, the sources said. State Street Corp and privately held Fidelity Investments were also potential suitors.
Bank of New York Mellon and Fidelity declined to comment. State Street could not be reached for comment.
Advent International together with Hellman and Friedman, owner of UK asset manager Gartmore and a bidder for Barclays iShares, are also expected to submit bids, the people said, but it is unclear whether they are in the group of first bidders.
Both firms declined to comment.
Part-nationalised UK lender Lloyds said earlier this year that it would keep Insight separate from its other funds arm, Scottish Widows Investment Partnership.
The move was interpreted by analysts as paving the way for a sale of one or both businesses.
Abdallah Nauphal, recently appointed to head SWIP in addition to his role as managing director and chief investment officer at Insight, has been mulling a management buyout of Insight's third party business, according to reports.
"There is no question there are both private equity and strategic (buyers) in the process so it is by no means a slam dunk MBO at all. I think strategics have a good chance here," said another person close to the process.
More private equity firms are likely to enter the process if first round bids do not meet the vendor's expectations, the sources said.

The dividend payment should be back next year, and LLOY will be more structured and the most powerful bank in Britain.
Well at least is what I think

Further good news maybe on the way

Lloyds to Receive Bids for $122 Billion of Assets (Correct)
By Sarah Jones

June 20 (Bloomberg) -- Lloyds Banking Group Plc may receive formal offers for 74 billion pounds ($122 billion) worth of assets managed by Insight Investments, the London-based Times reported, without citing anyone.

Insight Chief Executive Officer Abdallah Nauphal is assembling a management buyout proposal and several backers have expressed interest, the newspaper said.

A Lloyds spokesperson declined to comment when contacted by Bloomberg News.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ayDaBn0YuPxc

There is signs of Fund Managers building atakes as the economy is recovering

Buying Lloyds
By Dylan Lobo 21 June 2009

Fund managers are starting to see value in Lloyds on hopes the economic green shoots in the UK economy will turn into small shrubs.

Henderson New Stars Stephen Peak is among those who have bought into Lloyds recently. The move was part of his gentle shift into cyclical stocks where performance is generally linked to economic health.

Peak has invested 1.5% of his 158 million New Star UK Alpha fund, which he inherited from Tim Steer following Henderson purchase of New Star earlier this year, in the UK lender. I have been sceptical about banks for some time. But while Lloyds is still a risky situation and still has significant exposure to bad loans, a good part of this is factored into its share price, he said.

The intriguing thing about the banks is to work out where they will be. There is in argument that banks have never had it so good as they can charge attractive margins to the people they lend to. 'The more difficult bit is to work out the historical legacy of the problems but I feel that a degree of fear is already factored into some bank share prices.

While Peak is more optimistic on the economy, he warned investors to expect a bumpy ride between now and the end of the year. I think there will be further lurches of enthusiasm and despair. I expect the market to be higher by the end of the year but not significantly and it wont go up in a straight line.

Lloyds Halifax web site still shows the Gov,s share holding 22nd June 2009

Lloyds Banking Group (LLOY)
Sector:Banks
Add to watchlist ShareBuilder ShareDealing ISA SIPP Share Price
70.00p
Change Today
0.70p
Market Cap
19,013m
Summary Prices Charts Trades News Financials Director Deals Broker Views Profile Overview Latest Deals Largest Deals Latest Deals
Traded Action Notifier Price Amount Value
08-Jun-09 Placing Helen A Weir 38.40p 69,913 26,846.59
08-Jun-09 Placing Anthony Watson 38.40p 869 333.70
08-Jun-09 Placing Anthony Watson 38.40p 7,541 2,895.74
08-Jun-09 Placing Tim Tookey 38.40p 16,162 6,206.21
08-Jun-09 Placing Truett Tate 38.40p 86,665 33,279.36

More Lloyds Banking Group director deals
Largest Deals (28 days)
Traded Action Notifier Price Amount Value
08-Jun-09 Placing J Eric Daniels 38.40p 419,592 161,123.33
08-Jun-09 Placing Victor Blank 38.40p 275,190 105,672.96
08-Jun-09 Placing Archibald G Kane 38.40p 188,738 72,475.39
08-Jun-09 Placing Wolfgang C G Berndt 38.40p 155,319 59,642.50
08-Jun-09 Placing Truett Tate 38.40p 86,665 33,279.36

More Lloyds Banking Group director deals
Director Shareholdings
Notifier Holding Value*
J Eric Daniels 441,829 309,280
Victor Blank 290,625 203,438
Archibald G Kane 211,188 147,832
Wolfgang C G Berndt 163,504 114,453
Truett Tate 91,399 63,979
Helen A Weir 73,772 51,640
Tim Tookey 44,403 31,082
Timothy Ryan 12,426 8,698
Martin Scicluna 9,681 6,777
Sandy Leitch 9,148 6,404

Major Shareholders
Notifier** Holding Value*
The Commissioners of Her Majesty's Treasury 11,798,531,471 8,258,972,030