With an 8% yield these shares MUST be cheap. Does anyone out there really expect RBS to sut their div? Have put my shirt on it at 401.

It's amazing how market sentiment changes so quickly, Friday all doom and gloom with Financials leading market down, today Financials are all positive leading market up. The reason is an article in The Times saying barc, lloy will raise the dividends this week, this had already been widely anticipated since November.

I believe Banks will have to come clean this time, and I think they will, tomorrow will be very interesting for barc, I believe another 1.5bn w/o is anticipated (correct me is I'm wrong)

Remember 9th Nov when barc was temporary suspended because of wild speculation of 10bn w/o, which in the event turned out to be only 1.3bn. For what it's worth I believe US banks have talked upped the size of UK banks sub prime exposure, and would hope to see this confirmed tomorrow.

good results from lloy with profits just slightly ahead of consensus, and only 280m write offs for whole of 2007. Even a rise in the dividend payment of 5%.

As dull as ditch water, but this is exactly what we need in these markets.

Within the sector I'd suggest that LLOY is the safest place for your money right now. They've barely been touched by the credit crisis (relatively speaking) and the dividend is superb.

LLOY is certainly safest place in sector, I was going to invest 50/50 between lloy and rbs, but have changed mind to 70/30 in favour of lloy. shame a didn't buy more than I did on Friday, but will keep buying on dips.