Royal Bank of Scotland
 

Are they in trouble now ?

Are they the next bank to have major problems

I heard today that they have ceased trading on the stock market

Nothing huge on here:
RBS - Royal Bank of Scotland Group plc - Google Finance

and that's usually a good source for aggregated news.

Sonic, there was a couple of large trades in shares today which due to stock market rules means the company stock is suspended whilst the trade goes through. That was probably what you read/heard.

Added from the BBC site

RBS confirmed that the meeting with Mr Darling had taken place, but blamed the share price fall on two very large share trades taking place, which under stock market rules meant that the shares were temporarily suspended.

If RBS went down, the UK would truly be in a world of sh!t

I was told that it hadnt been announced on Reuters

Matt that was probably about right, we are currently going through a 'change' at work and we did bank with RBS and lots of strange things have happened today that ordinarily wouldnt have happened

Would banks not be better off not being plc's?

Just seems that solid (in theory) organisations are being bought to their knees by being tarted around the stock market.

They are plc's

Well the ones listed are anyway.

I know.As stated,would they not be better off not being plc's.

Mind you,it seems they are all heading for some sort of nationalisation which I suppose should give some stability?

As you can tell I know stuff all about the real implicatins of the suggestion but the stock market forces (well,naughty buyers and sellers) really seem to have caused serious harm

What we need to remember here is that share price does not have an impact on solvency (or otherwise). Nor does it have any direct impact on the value of the physical assets of a particular bank.

It will, of course, impact in other areas, bur RBOS is in the same balance sheet position it was in before the quoted 39% drop in share price.

Share price reflects what the market believes a listed company is worth, based on a number of factors and not necessarily including its balance sheet position.

A failing business will always have a falling share value, but a falling share value does not necessarily mean a failing business.

This is exactly my point though.I'm sure HBOS and Lloyds and indeed all the others aren't failing businesses but the panic seems to be a direct result of what people perceive is happening to them because of plummeting share value.

Anyway,I'm out of my depth here:)

Going to have a nosy at the FTSE which seems on its way to the 3000's at the moment:eek:

D'oh! Sorry! Didn't see the sceond not!

They are not having it easy, that's for sure, but yes, the perception of the problem is worse than the reality for the banks in question.

Double negative though Pete;)

:lol1: You're right!

Lozgti you div ;) :D

No one calls me a div.Not never:D

:cry:From what I understood (which was limited :lol1:) the banks main problems were lack of confidence in each other leading to limited borrowing/lending between themselves and other financial institutions? Which impacts on their solvency as they can't turn their 10squillion dollars in mortgages into cash.