lizmachin Posted February 2, 2012 Share Posted February 2, 2012 Hey Liz, if these "guys" as you call them, want to take a few of those gold plated deals they put together with them, this is music to my ears. Can you ask them to take the CDS's, the rehypothecations, and those wonderful triple A bond deals they did? Maybe then our lose will be less. I will mention it. One or two of them are working over here. Link to comment Share on other sites More sharing options...
T 42 Posted February 3, 2012 Author Share Posted February 3, 2012 As ive stated already Liz. This is wonderful news. We wont have to pay them stupid redundancy payments now. So what do you think would happen to the RBS share price and therefore the £billions we have invested in the bank if Heston left and moved to a rival bank, taking his knowledge, contacts and a few key staff with him? Link to comment Share on other sites More sharing options...
Lockjaw Posted February 3, 2012 Share Posted February 3, 2012 RBS's share price was above what the government paid for them, back in April 2010. They could've been sold at a profit, rather than run into the ground. Do you think so? Since you are contributing so confidently to this thread I assume you are familiar with the ins and outs of the stock market and fully aware that, in the very short term, stock prices are driven up or down largely by the amount of buying or selling taking place. You must have forgotten, I guess, that, since the government (assuming you were only talking about the ordinary shares and not the B shares) had 67% of the total stock to sell, they would have been unlikely to find a single buyer to take the whole lot at that price so they'd have had to sell them in chunks, each chunk driving the price down. I'm no expert in the financial world and, as I implied earlier, I don't believe that one can predict short term SP movements with any degree of certainty but I reckon the attempted sale of 67% of RBS would cause a bit of a plummet in the price. Don't you? Link to comment Share on other sites More sharing options...
Lockjaw Posted February 3, 2012 Share Posted February 3, 2012 So what do you think would happen to the RBS share price and therefore the £billions we have invested in the bank if Heston left and moved to a rival bank, taking his knowledge, contacts and a few key staff with him? I know ... I know! It would go up or down .... then it would go up or down some more and continue to do so. In the mean time, the company would appoint successors to the people who have moved on and offer them a lot of money if they do well. Over the long term the share price would rise or fall roughly in relation to the amount of money the company makes. Ask me another... Link to comment Share on other sites More sharing options...
T 42 Posted February 3, 2012 Author Share Posted February 3, 2012 I know ... I know! It would go up or down .... then it would go up or down some more and continue to do so. In the mean time, the company would appoint successors to the people who have moved on and offer them a lot of money if they do well. Over the long term the share price would rise or fall roughly in relation to the amount of money the company makes. Ask me another... I'm clearly missing something here. In 2008 when the government bought 81% of the bank they appointed Heston as CE and promised him a lot of things if he took the job. They are now saying that he can't have the bonus that he was promised. Also in 2008 the government announced a clamp down on bonuses atRBS making the salary/bonus packages some of the lowest in the world banking industry. Since then several thousand key staff have walked out to take up positions elsewhere. So what you are saying is if Heston leaves to move elsewhere and takes his knowledge with him (because the government have reneged on his salary, they can offer a huge salary/bonus package to someone else who is daft enough not to realise he is being set up? Did I mention that the share price (company value that we own) has halved since the government started to interfere and the staff started to leave? Link to comment Share on other sites More sharing options...
Lockjaw Posted February 4, 2012 Share Posted February 4, 2012 I'm clearly missing something here. In 2008 when the government bought 81% of the bank they appointed Heston as CE and promised him a lot of things if he took the job. They are now saying that he can't have the bonus that he was promised. Also in 2008 the government announced a clamp down on bonuses atRBS making the salary/bonus packages some of the lowest in the world banking industry. Since then several thousand key staff have walked out to take up positions elsewhere. Hiya T. Are you aware that these two statements are somewhat contradictory? Also, can you verify that the government "are now saying that he can't have the bonus that he was promised"? I though he had taken the decision himself. So what you are saying is if Heston leaves to move elsewhere and takes his knowledge with him (because the government have reneged on his salary, they can offer a huge salary/bonus package to someone else who is daft enough not to realise he is being set up? Er, no. I'm saying exactly what I said. Unlike your own posts, I tend to say exactly what I mean, check my facts before posting and avoid drawing erroneous conclusions from subjects I know little about. Did I mention that the share price (company value that we own) has halved since the government started to interfere and the staff started to leave? Probably. You didn't need to, though; as I said earlier, I follow the RBS share price very closely. Since you've mentioned it yet again, though, I guess you must now be very pleased that Hester isn't getting his bonus because the share price is now higher than it was before the announcement so we taxpayers are now richer. Am I correct? Link to comment Share on other sites More sharing options...
lizmachin Posted February 4, 2012 Share Posted February 4, 2012 Hiya T. Are you aware that these two statements are somewhat contradictory? Also, can you verify that the government "are now saying that he can't have the bonus that he was promised"? I though he had taken the decision himself. Er, no. I'm saying exactly what I said. Unlike your own posts, I tend to say exactly what I mean, check my facts before posting and avoid drawing erroneous conclusions from subjects I know little about. Probably. You didn't need to, though; as I said earlier, I follow the RBS share price very closely. Since you've mentioned it yet again, though, I guess you must now be very pleased that Hester isn't getting his bonus because the share price is now higher than it was before the announcement so we taxpayers are now richer. Am I correct? I think you have pretty much confirmed why investors are shying away from RBS shares. Markets rarely react to events. They usually anticipate them, and what has happened at RBS has been anticipated and largely factored in. The share price has fallen by around 95% in 4 years and is flatlining whilst the rest of the UK stock market climbs. It is to some extent to do with fears over government interference with the running of the bank that has marked it as one to leave alone. This is not something new but has been going on since the first injection of government cash. Link to comment Share on other sites More sharing options...
Lockjaw Posted February 4, 2012 Share Posted February 4, 2012 I think you have pretty much confirmed why investors are shying away from RBS shares. Markets rarely react to events. They usually anticipate them, and what has happened at RBS has been anticipated and largely factored in. The share price has fallen by around 95% in 4 years and is flatlining whilst the rest of the UK stock market climbs. It is to some extent to do with fears over government interference with the running of the bank that has marked it as one to leave alone. This is not something new but has been going on since the first injection of government cash. Agreed on all points. The amusing thing, though, given the OP and the points some posters have attempted to make on this thread is that, over the last week and month, RBS has considerably outperformed the FTSE - totally irrelevant in the long term but completely at odds to the claims being made. [All my data is, as always, from the FTSE website and I haven't double checked it against other sources] Link to comment Share on other sites More sharing options...
lizmachin Posted February 4, 2012 Share Posted February 4, 2012 Agreed on all points. The amusing thing, though, given the OP and the points some posters have attempted to make on this thread is that, over the last week and month, RBS has considerably outperformed the FTSE - totally irrelevant in the long term but completely at odds to the claims being made. [All my data is, as always, from the FTSE website and I haven't double checked it against other sources] If you choose your own line to start from you can probably fool yourself into believing anything. The point is that RBS shares took a massive hit towards the end of 2011 and merely made up a bit of ground on the news that they had disposed of some pretty toxic assets. (Which is why Heston was up for a bonus) In truth RBS has woefully under performed compared to the FTSE100 and has lost half its value in the last 3 years and 95% of its value over the last 5. The general trend is downwards. Combine that with the fact that RBS isn't paying a shareholder dividend and you have a pretty dire investment, which is why advisors are marking it as one to avoid. A company will never perform well if the board have to operate with their hands tied behind their backs. But if you have shares I wish you luck. They probably haven't got much more left to fall so you haven't got much more to lose. Just think. In April 2007 RBS shares were trading at over 600p Link to comment Share on other sites More sharing options...
T 42 Posted February 4, 2012 Author Share Posted February 4, 2012 Hiya T. as I said earlier, I follow the RBS share price very closely. Am I correct? You are so funny. There isn't much point you following the RBS share price very closely as you clearly have little understanding whatsoever of what it means. Link to comment Share on other sites More sharing options...
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