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Lloyds Banking Group shares plunge


Mary
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The bloodbath in the banking sector continued apace on Tuesday as Lloyds Banking Group joined Royal Bank of Scotland in suffering further devastating share losses. Lloyds sees shares plunge by almost 50 percent.

 

Lloyds - created on Monday from the merger of HBOS and Lloyds TSB - plunged 47% at one stage amid doubts over the Government's second bank bail out and renewed fears for the sector's health.

 

RBS also extended the mammoth falls of the previous session, with another double digit drop on top of Monday's 67% plunge. The NatWest parent had started the day in positive territory, but shares later slipped 11% into the red, with heavy losses for banks on Wall Street adding to its woes.

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On the same depressing vein, I note the following comment reported in a number of papers, this from the Daily Mail:

 

"Sterling plunged to a seven-year low against the dollar today as one of the world's top investors warned the currency was 'finished'.

The pound fell more than two cents to hit a low of $1.3965 as traders reacted to the Government's latest multi-billion bailout of the banking system.

 

It is the first time sterling has dropped below $1.40 since mid-2001 and is on track for its biggest one-day percentage fall against the dollar since late 1992.

Less than a year ago, it was still trading at $2. Today, it was also down against the euro and the Japanese yen.

Jim Rogers, who made his fortune when he founded the Quantum Fund with billionaire George Soros, warned investors they should start dumping the pound.

He said: 'I would urge you to sell any sterling you might have. It's finished. I hate to say it, but I would not put any money in the UK.'

"

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perhaps it is time for gormless gordon to nationalise the stock exchange, tax all share dealings of over 10000 shares at 25% except ones for financial organisations, where the tax is 75%.

this should stop the rumour mongers and the adolescent attitude of the children at LSe.

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  • 4 weeks later...

Do Bank workers get paid a salary based on a contract of employment - "fair days pay for a fair days work"etc: and arn't "bonuses" designed as incentives for good performance above and beyond the call of duty? :? So why are Lloyds daring to pay out record bonuses for clear failiures in the banking system? :roll::twisted:

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That is true, but I'm not sure that any company in trouble can afford to pay bonuses to anybody. Most businesses who won't be bailed out by the taxpayer, not only don't pay bonuses, they tend to make staff redundant in the first instance and then if things continue to decline, shut up shop......no bonuses, no salaries, no job.

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Re the currency is finished. Being old, it only seems like yesterday when the pound was heading downwards towards parity with the dollar - so we have a way to go yet.

 

Not everyone has sympathy with savers, but many many prudent? people are being badly hit by this drop in shares - just one effect of the recession.

I read that manufacturing has been very badly hit in countries like Japan. We don,t have that much so perhaps it is a slightly better note as we don,t have that far to fall. - which is a very small consolation.

 

Happy days

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That is true, but I'm not sure that any company in trouble can afford to pay bonuses to anybody. Most businesses who won't be bailed out by the taxpayer, not only don't pay bonuses, they tend to make staff redundant in the first instance and then if things continue to decline, shut up shop......no bonuses, no salaries, no job.
Correct me if I'm wrong as I only caught it on the radio, but isn;t it the Lloyds staff that are getting the bonuses, but due to the very recent takeover of HBOS, thye company is now in trouble, yet Lloyds on its own actually performed veyr well, hence those staff getting their bonus?

 

I can understand it in that case, although surely like you say they should be looking at the long term health of the company, which could surely be helped by not paying out ?120m in bonuses?

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The merger between Lloyds and HBOS was a shotgun wedding, and Gordon "Prudence" Brown was holding the shotgun. Now Lloyds has been pulled into the mire that it had managed to avoid until then. :roll::roll::roll:

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I think you will find it well documented that Gordon approached Lloyds. I know where you get YOUR news so I'm not suprised you're so often misled. :wink::wink:

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