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.

Reckon your right, Spitfire, on today's news. The AFX says that Sir Tom McKillop, non-exec Chairman, has briefed their 20 major institutional investors (not quite in that league). They have no need or intention to cut the dividend or announce capital-raising when it unveils full year figures later this month. Their contingency plan, in the event of "systemic shock" (nice one!), is to dispose of assets, e.f. a Bank of China stake worth appraching 3 billion.

Thought I would run a short-term position given the publicity this will get in tomorrow's papers. Mind, not used to the violently active trading you get with a share of this size.

Eric

Can't argue with the logic, Eric - but if there was a "systemic shock" (caused perhaps in no small part by overvalued assets on bank balance sheets) then disposals might not prove straightforward. Not a holder of RBS, but still have enough BARC to keep a wary eye on the sector.

Partridge: attaracted to the share by the yield (and earnings). Happy to take Chair at face value when he says that yield is not at risk; nor is there any intention to dilute holdings through a rights issue. So a secure yield of 8% is very attractive. OK, a shock which undermined the whole of the banking sector would undermine the whole of the market: if you take that view one would be better out of shares altogether and put the cash under the mattress!

Eric

Yes, but the RBS finance issue will be with us for some time, perhaps even after the NRK fiasco is forgotten (if ever!).
Any "Rights Issue" mentioned here recently, will reduce your yield % as well as cost you . . . it is this that is making nervous investors quit. Big players are "locked-in" since to pull out would make their position even worse, getting a low-price for any large volumes.

I believe RBS and A&L are being "pointed-at" as being more involved in Mortages here in the UK - with a proportion of these becomming defaulters, that knocks the perception of the Bank, even tho' it's standard practice to foreclose.

By many accounts NRK Mortgages are quite sound - so the Bank is unlikely to default - despite the queues etc. Their real problem was that the Execs didn't understand (or cared to ignore), the Risk they were close to.

My goodness, just looked at the chart.

Who would have thought that RBS would lose half of it's 'value' in under 12 months.

With a 10 bill rights issue coming soon what do you expect..

I'll just have to go and buy some more then. :)

what date do they go ex/div ?

I believe it is 5th March

with price now at 362, if my calulations are right the p/bv would be 0.78 now. In the financial recession in 1990 US banks had a p.bv value on average of 0.9, at the lowest point. I know it could be effected by rights issues or more writedowns etc, but if the price goes further south in another sell off, I will be very tempted to buy.

Is there bad news to come..?

No only good results, but will the market respond positively when only bad news matters?

I doubt it halifax.

I am not as pessimistic as some, the truth will out soon when the market realises that the shorters (hedge funds) are going to be caught out. With interest rates falling the "little boy" will soon tell investors that these hedge funds have no clothes.
Take on the banks at your peril everybody needs them even governments. Who needs hedge funds?

I am really looking forward to either RAB and asssociates or Dicky Pickles trying to repay us taxpayers 20 billion when NRK are losing money at the moment never mind the bad debts which are going to explode as a result of the massive expansion of their lending book during the past year.

BARC LLOY RBS etc are as they say "laughing all the way to the BANK" at the governments expense.

with news today of soc gen rights issue of 1 to 4 sharea at 39% discount to price, and negative comments in the media, I expect banks to be hit this week, which should produce some good entry prices. As well as RBS, I will look into BARC.

I agree BB. due to open bank results season on Wednesday which may set a negative tone before BARC report on 19th.

see latest HSBC review of UK banking sector below, having said in last thread I would look into BARC, I changed my mind and put LLOY on my list with RBS, before I saw the review below.....................

HSBC has cut its price targets on UK banks in a sector review following uncertainty in the housing and commercial property market, the possibility of a domestic recession and potential collateralized debt obligation write offs, market sources said.

In a note out this morning, HSBC reiterated its 'underweight' stance on both Barclays and HBOS and cut its target prices on the pair. HSBC's target price in Barclays is now 410 pence from 440, HBOS' is 630 pence from 730.

Meanwhile, the broker retained its 'neutral' stance on Alliance & Leicester, Bradford & Bingley and Standard Chartered. Its target price are: Alliance 620 pence, from 770; Bradford 250 pence, from 290; and Standard 1,700 pence from 1,840.

HSBC also reiterated its 'overweight' stance on Lloyds TSB and Royal Bank of Scotland, respectively cutting the price targets to 470 pence, from 550, and to 440 pence, from 540.

My stance on HSBC is sell target 675p.IMHO too many problems in the US. BARC may surprise, LLOY is the "steady as you go" bank and RBS after the ABN mistake is anyones guess.