could RBS be next for suspension?

[dr.blix]

hi i am new to trading and have just bought £1000 IN RBS at 20p in 2 days shares rose 10% to show my first trade profit. i have a fair sum with which i am trying to make a fast profit with bank shares looking at lloyds and barclays too.
my question is if rbs is naitionlized what would be the outcome for my money/shares? thanks

i would have thought it only safe to day trade/scalp banks at the moment, look for the best setup you can and then get the f**k out asap. use an instant news feed like RNS. don't leave any overnight positions, and certainly no wknds.

 

[dr.blix]

and don't forget your stops! (ahem...like i did)

 

[rups]

Lehman is a investment bank, whereas RBS is a fundemental financial model linking retail commercial investment the whole cycle through which drives the principals of a capitalist world. the idea that RBS has gone this far is alarming however remeber whats on the line. The government are hardly quick to respond to most things however this was a dynamic move, why>? because the fall of RBS would have been a symbol of failure to the world. This is not simply a question of letting a bank fail, its much much bigger

 

[happytraveldog]

I tried to place a buy spread bet at 10 pence and couldn't. I was told they were only accepting sell orders. I kept trying and eventually got in at 19 pence at £32.50 a point. I understand its a gamble but for me the potential gains balance the maximum loss. It is my personal belief that the banking sector will recover and that we as investors have been offered a one time opportunity to make a lot of money from this banking fiasco.

Only time will tell if it was the right decision to make.

Cheers
Lee

Lee,

I am inclined to agree with you and will be taking the plunge tomorow. I am going to bet £20 a point long on the RBS Sep futures price and if it goes down, I will buy some more easing in at £5 per point per re-entry.
It's a long term punt with my stop loss set at 7 pence. I am happy to risk a few hundred to make a few thousand over a year or more.

How are you feeeling about your decision so far with the current price at 19.8 pence?

Regards

Andy

 

[dla133]

I made the following post in this thread 4/2/09

"I sold out late yesterday with a small profit. Don't like the action of the general market and the other banks at the moment. I have a suspicion that this stock is now going to fall down to 15 pence minimum, however I will not be shorting it. If it does fall back to 10 pence I will be going back in again.

Cheers
Lee"

If it falls to 15 pence I'll get back in, if not I'll stay out.

 

[counter_violent]

Council pension funds suing RBS

RBS has to be rescued by the government in November
Two local authority pension funds have told the BBC they are suing Royal Bank of Scotland (RBS) for compensation.

The Merseyside and North Yorkshire funds accuse RBS of withholding the extent of the bank's problems before its government rescue last year.

The legal action against RBS, which has declined to comment, has been launched in the US. Other UK pension funds are said to be considering joining them.

They will be represented by Cherie Booth QC, wife of Tony Blair.

Share collapse

RBS gained an extra £12bn from shareholders following the conclusion of a successful share issue in June of last year.

The purpose of the litigation from the side of Merseyside Pension Fund is to hold management to account

Peter Wallach, head of the Merseyside Pension Fund

Yet just five months later in November, the bank needed to accept a £20bn rescue package from the government in exchange for a 58% stake in the bank, which was subsequently increased to 68%.

The then RBS bosses, led by Sir Fred Goodwin, have subsequently stood down from the bank.

At the same time, the firm's share price has collapsed, down from 243 pence immediately after the June share issue to the current 22.5p.

Public interest

Peter Murphy, a partner at Sackers, a specialist pension law firm, said that the US legal system was better suited to this type of claim.

"US lawyers act on a 'no win, no fee' basis and plaintiffs do not have to pay for the other side's legal costs even if they lose," he said.

However, he expressed surprise that Ms Booth was involved in the case.

"Her profile is mainly in UK and European human rights law, not US securities litigation. But that is not to say she doesn't have relevant expertise," he said.

"Her involvement in the case will certainly add greater public interest to an already high-profile media event."

'Inaccurate'

Peter Wallach, the head of the Merseyside Pension Fund, said he wished to ascertain whether statements made by the former RBS bosses before the share issue and subsequent government rescue "were in any way inaccurate or misleading to shareholders".

"The purpose of the litigation from the side of Merseyside Pension Fund is to hold management to account," he said.

"Our concern is that perhaps management didn't indicate to shareholders the full extent of the deterioration in the bank's finances when it first came to shareholders for additional capital."

The legal action has come in the shape of a US class action civil lawsuit, which enables a number of complainants to join together and make one, collective claim.

Mr Wallach added that the case was being take on a no-win, no-fee basis, so there was no risk to its pension holders.

The North Yorkshire Pension Fund website says it covers employees of the county council, district councils within the region, police, fire service, universities and colleges, national parks and Yorkshire Tourist Board, among others.


Priceless

 

[happytraveldog]

I sold out of all RBS last week at 23 p.
Will wait to see what happens with this RBS class action story.

Any ideas..besides wait and see?

 

[dla133]

Hi everyone.

Maybe I am the erternal optomist, but it is my belief that in 10 to 15 years from now a lot of investors will be talking about how they made a killing in the financial sector. Pick a banking or financial related ETF for the long term and I don't believe you will regret it.

Cheers
Lee

 

[Jaydee]

Hi everyone.

Maybe I am the erternal optomist, but it is my belief that in 10 to 15 years from now a lot of investors will be talking about how they made a killing in the financial sector. Pick a banking or financial related ETF for the long term and I don't believe you will regret it.

Cheers
Lee

I agree with you Lee. However, you may find that those investors lost sleep for two of those 10-15 years initially because they fished for the bottom and lost 50% of their initial investment because of that.

I am a buyer in these stocks when the market and global economy gives me a good indication of recovery - I just don't see that being right now. But, hey, I'm often wrong.

 

[dla133]

Hi Jaydee,

I am the worst market timer, that I can be sure of. The financial sector as a whole has had such a battering that over the long term it has only one way to go. Commodities is another sector that will rise in my opinion. This has got nouthing to do with fundermental analysis but all to do with common sense. When will this turn around take place, who knows? Foe me it is the same as asking someone what price will the Dow be in 20 years from now? All I would say is higher. I am only 36 and have time on my side so investing for the long term at this point should be easy.

 

[Jaydee]

It's no problem as long as you have invested money that you can afford to lose a percentage of. E.g. Barclays is at 90 today - it could go to 45 again which would mean if you bought now you would lose 50% in the short term, despite the fact it may be 250 in 5 years time. All I'm saying is, you need to be prepared that this could happen before it goes up. Ask yourself, would you be ok with a 50% loss in the first year? Many don't consider this at all - they only see that it will go up because they WANT it to go up so much. Take the guys who bought RBS when it first dropped to 70 - look at the loss they are holding now.

I'm not trying to scaremonger but in my experience it is best to look at worst case scenarios and have a plan for them. 'If it can happen, it will happen' so to speak.

 

[zoozoozing]

is now still a good time to buy RBS?

 

[WallStreetHero]

hell no

 

[rups]

i wouldnt but you got live and leaen ; )

 

[Chartergas]

any news on the government upping their position to 75% ownership??

 

[rups]

we will be the last to know. the chart should advise you ; )

 

[Chartergas]

Anybody know what exactly the rules are for banking that may be handed down from G20?

 

[robbiemac]

Hi,

Sorry to join this thread late.

Personally I dont view RBS as a good long term hold at this point in time as the fundamentals of the company don't give me any reasons to invest.

I would be interested in some short term positions via a spread bet until the longer term outlook for the banking sector improves. I think we will see more consolidation in the banking sector in the not too distant future which could well involve nationalisation of some brands.

I know there has been a large percentage upswing recently but I believe we are about to see a similar type of stress testing applied to the major banks in a similar manner to the banks across the pond.

I believe there is still troubled times ahead for the banking sector.

My reason for posting here is the following;

My understanding is that if you buy individual shareholding in RBS and the company is Nationalised then individual shareholders potentially lose their entire investment.

What would happen to investors who held a spread bet on RBS or indeed any other bank for that matter.

What do the spread bet companies do in this kind of scenario? Is it wise to assume the bet will be closed down and settled on the price at the time the share is suspended?

p.s. I joined this forum a long time ago and once I realised how much I needed to learn, I decided to put my trading stategy on the back burner. Firstly because I didnt have one and secondly I didnt want to get wiped out at my first attempt.

Thanks in advance.

Robbie

 

[WallStreetHero]

any sane person knows banks are in for a major bash in the coming months.
i exect RBS to be trading below 20p by the end of the year.

 

[peter450]

any sane person knows banks are in for a major bash in the coming months.
i exect RBS to be trading below 20p by the end of the year.

Can you elaborate on this, i hold RBS shares and there's been a bit of rally of late, why do you think they will take a hammering over the summer?

The old adage sell in may and go away, should i be heeding that advice?