LUNCH TIME FUN

The GREEDY - FAT CATS - are still around .................

RBS boss set for 9.6 million pay deal

The new chief executive of Royal Bank of Scotland (RBS) could be paid as much as 9.6 million under the terms of a deal expected to be unveiled later this week by the bank.

It is understood that Stephen Hester, who took over the 70% taxpayer owned bank late last year, will receive a basic salary of 1.2 million, a 2 million annual non-cash bonus, and up to 6.4 million of long-term share and stock-options.

The stock options are dependent on meeting various targets including share-holder return and share price performance.

It is understood that Hester will only receive the maximum payout if RBS's shares rise above 70p - effectively doubling from Friday's close of 37.2p.

A rise to such a level would also take them above the level at which the government bought its stake last year for around 50p.

Lloyds chief executive, Eric Daniels, is on around 1 million annually, with a further maximum 2 million as part of a long-term incentive scheme.

Hester's payout - which should be confirmed this week - was approved at a meeting last week by UK Financial Investments (UKFI), the state-body which controls 70% of RBS, as well as by other leading shareholders.

While the payout will no doubt be seen as excessive for what is a taxpayer funded bank, the decision to align Hester's remuneration to the share price performance will effectively tie the interests of the chief executive to shareholders.

RBS courted controversy over the weekend over its continued funding of corporate hospitality at Wimbledon.

According to reports, the bank has spent 300,000 on packages which include Centre Court tickets, 75-a-head lunches and vintage champagne.

The package, which the bank said had been contracted in and was part of a long-term deal, comes following announcements from the group that it is to shed 15,000 jobs in total as part of a restructuring.

Last week former RBS boss Sir Fred Goodwin agreed to reduce his pension payout by 210,000 a year following a surge of anger at the scale of the deal which eventually led to an attack on the ex-chief executive's home.

Goodwin said he would reduce his pension payout from 555,000 to 342,500 a year.

Is action being taken on time?

LLOYDS BANKING GROUP (LLOY.L) The bank has acted in anticipation of a sharp rise in the number of struggling companies
on its loan book by more than trebling the size of its corporate restructuring division, the Mail on Sunday said.

Looking good since the Intraday low of 60p two weeks ago

......... But that UPTREND line of two weeks, is now broken with yesterday's close down and more today it seems,
now 66.40p -1.45p, still up over 10% from that low.

The rest of the banks are week also, as the market has not got a proper direction today, a bit of up and down so far.

Wealth managers back banks as 'buy'
By David Campbell -- 23 June 2009

More than a third of wealth managers say UK banks are a definite buy with only pharmaceutical stocks and oil and gas rated higher, an industry survey has shown.

Research for the Association of Private Client Investment Managers and Stockbrokers (Apcims) showed that 35% of money managers believe that the sector is now undervalued.

Almost three quarters (72%) said they believed there would be at least one further strong rally in the next year and the same number believed the current rally would last six months.

More than half (58%) said that they were now taking reallocating cash and 28% said that they believed that their exposure to corporate bonds would continue to rise.

Mike Lenhoff, chief strategist at Brewin Dolphin and chair of the Apcims asset allocation committee, said: Bond and equity markets are reflecting a growing conviction that policy makers the world over will be successful with their efforts to reflate the global economy.

Indeed, we may be going through the trough of the recession right now. That said, the prospect of recovery does not mean plain sailing ahead.

Inevitably there will be set backs along the way and so it makes sense to maintain an appropriate degree of balance between bonds and equities in portfolios.

The results came despite a distinct lack of conviction about the economic health of the UK. Just 28% said they expected the economy to improve versus 35% who said they expected no change and 37% said they expected it to deteriorate.

Alongside financials oil and gas was also highly rated as a buy opportunity by 47% of respondents while pharmaceuticals were rated by 42%.

Trading central forecast for LLOY........

61.25 is our pivot point.

Our preference: short term rebound towards 87.25.

Alternative scenario: the downside breakout of 61.25 would call
for 52.75 and 47.5.

Comment: the RSI is below 50.
The MACD is above its signal line and negative.

The configuration is mixed. Moreover, the share stands above its 20 day MA
(66.9) but below its 50 day MA (70.08).

Supports and resistances:

92.5 *

87.25 **

82

67.85 last

64.5

61.25 **

52.75 *

(c) TRADING Central 23-06-09

And the reason for today's poor performance ..........

Lloyds Banking Group (LON:LLOY) is down this morning courtesy of a ratings downgrade by Moody's to its key operating units.

Moody's Investors Service lowered the Bank Financial Strength Rating (BFSR) of Lloyds Banking Group component Lloyds TSB from C+ to C.

Moody's also said the outlook was negative.

"The lowering of Lloyds TSB's BFSR by one notch to C incorporates the significant challenges lying ahead for the bank's management to continue the integration of HBOS and its subsidiaries, as well as the residual risk remaining in those assets that will not be covered under the Asset Protection Scheme" said Elisabeth Rudman, Vice President - Senior Credit Officer at Moody's and lead analyst for Lloyds.

Tell us what does a Moody's credit analyst know about rationalising Lloydstsb and HBOS? Don't you get sick of these so called experts that have never run a business in their lives. It is time these mindless pen pushers were questioned and their motives exposed.

Should see these fly tomorrow !! why ???? because i got out today - usually makes a share soar :-)

        CLOSING MARKET REPORT

Investors reacted negatively to the furore over RBS Chief Hester's remuneration deal with the shares edging down 0.77p at 35.19p,
while others in the sector also weakened. Barclays was a major casualty, down 4.95p at 259.05p, while Lloyds fell 2.85p at 65p
and Standard Chartered slid 40p at 1,135p.

nordcaperen

re - Should see these fly tomorrow !! why ???? because i got out today

That's life, the Market usually shakes the tree, and the rotten fruit falls to the floor ( the weak holders sell )

Do not forget........

NOTHING GOES INTO A STRAIT LINE
But 2 days up 1 down is good enough to go into UPTREND eventualy

very true - and I believe that many of the weak holders are now selling having just received share certs following the open offer. Hundreds of thousands on the share register still hold the shares in certificated form - amazing! The Institutions will be picking 'em up cheap. IMO back to 70p next week.

why the mickey mouse spreads ???? Fancy Rbs on the Bounce out the two , but lets see what comes out tomorrow first

nordcaperen

keep us posted of your eventual choice

Drops more in one day than it rises in five - Hope it turns for you soon, I'll get back in when it holds above 70p not before - too risky !

nordcaperen

re- Drops more in one day than it rises in five

Now ORDER, ORDER

JOKE - A few more white lies like this and you will be barred from HEAVEN


The chart does not LIE

Comparing LLOY ( line blue with FTSE line red) during the last 2 weeks
LLOY is wining by 6%, not many stocks have been doing so well

Rather depends on your starting point:



Two-month view. LLOY in the red, as it were!

The Other Kevin

RE - Rather depends on your starting point

Not sure if you follow LLOY recently, but there is a reasons for my chart

1 - is for "nordcaperen " buying two weeks ago at just over 60p

the second is YOUR chart is not ajusted to the R I at 38.43p, so the comparison is not correct.

Clever clogs usually , just give wrong information but not Subtance on what is going on.


Example : At the time of the fall 19 May - Share price going X Righ Issue and ajusted from 100p to 76p ( not represented on YOUR chart )

edited

LAST YEAR large slosses by BANKS ................

RBS tops banking losses list

Rhian Nicholson
24.06.09 09:47

Royal Bank of Scotland (RBS) suffered the heaviest losses out of all lenders last year, according to the Banker magazine's Top 1000 World Banks 2008/09 survey.


The beleaguered bank, which is now 70% owned by the taxpayer, saw total losses of $59.3 billion - higher than Citigroup's $53 billion loss and Wells Fargo's $47.8 billion disaster.


HBOS, which was taken under Lloyds' (LLOY) wing last year, snared the sixth spot with losses of $15.8 billion.

In contrast, JP Morgan topped the magazine's annual list of the strongest banks, up from fourth place a year earlier following its takeover of Bear Stearns and Washington Mutual last year.

Bank of America came in second, based on the amount of Tier 1 capital held - with Citigroup third and RBS in fourth place.

Last year's top performer HSBC (HSBA) fell to fifth place, but was the only one of the top five not to receive any Government support.


The analysis revealed the top five most profitable banks were Spanish or Chinese followed by HSBC and Barclays (BARC).



Global bank profits are estimated to have fallen 85% last year to $115 billion and return on equity falling from 20% to 2.69%.