lozgti

These banks have lost.Where did it go

I can't remember how many o's a billion is but is that a hundred ,hundred million just 'gone'?

To be honest I'm rather enjoying their pain at the moment.Serves the greedy sods right

ScoobLou

iTrader: (21)

Dunno but my brother has been made redundant because of it!

SJ_Skyline

The way I see it is:

Anybody who pays into a pension fund is more than likely to have a portion of that fund held in equities (shares). Any fund manager worth their salt will balance that fund across multiple sectors, banking included, so anybody with a pension is likely to be affected to a greater or lesser extent.

Please one of the financial guys correct me if I'm wrong here

alcazar

iTrader: (2)

Depends. A British Billion is a million million, (1,000,000,000,000), but banks and governments tend to use the American Billion, which is a THOUSAND million, (1,000,000,000)

So a hundred billion would be a hundred thousand million, or one tenth of a true billion, (100,000,000,000)

Alcazar

Brendan Hughes

So when the Yanks hear of it they say "Oooooooooh" but when the British hear of it they say "Ooooooooooooh!"

kingofturds

iTrader: (1)

Greedy banks lending money to people with not a hope and hell in paying it back, you just have to look how many credit card offers my nephew gets and he only turned 18 a few months ago
While it's basically theft these idiots running up tens of thousands of debt they have no hope paying back, I have limited sympathy for the greedy ******* happy to dish the money out when these muppets turn round say boo hoo and declare themselves bankrupt.

Ultimately it's us who will pay for the greed.

fast bloke

Guys - You need to look into the accounting side of things to get a grip on this. This is all basically money that never existed, but had the potential to exist, with the option for the banks to make a few quid on it while it wasn't existing. Now that the profit available from it isn't quite as easy for them, they need to make sure that it stops having the potential to exist before they have to pay tax on it.

It is a similar setup to property or equities. Say you had put £4000.00 into British Airways in 2000 at (??roughly) £4.00 per share. When it reached its lowest point your shares were worth £800.00, so you had 'lost' £3200.00. You didn't sell, but held on until they hit £6.00, so you had 'made' £5200.00 (you wouldn't have any tax consideration until you sell them), but they drop back to £3.00. losing you another £3000.00.

So you have now lost 6k of an intial investment of 4k, but as you still hold the shares, you have an asset of 3k. With a bit of accounting trickery, you can offset the 6k loss against other tax demands, but until you liquidise the asset, you never have to pay any tax on the gain.

So the 100 billion isn't actually lost, in the same way that the Bugatti Veryon that isn't sitting in my driveway hasn't actually been stolen!!