The worst is over. Anglo-American banks are brewing to nationalize
Source: Internet
Author: User
The stability of the financial markets and the rebound in stock prices driven by high risk appetite funds have allowed regulators in the UK and US countries to return to the market and to nationalize after a massive injection of capital. Britain has begun negotiations with several sovereign wealth funds and other foreign investors to sell stakes in its nationalised banks, and several U.S. banks are actively preparing to return the government bailout money. Yesterday the Financial Times quoted the British monetary investment Agency as saying that within a year, the agency may start selling Lloyds bank and a portion of RBS, which manages 43.5% and 70% per cent of the government-held bank's holdings of the two banks. The UK Financial Investment Agency has had extensive contacts with potential investors, including foreign institutions such as UK institutions and sovereign wealth funds, which are assessing investment interests. But people familiar with the matter said UKFI might offload their shares in batches, but each could be quite large. But analysts said the UK government could not completely dispose of its stake in a year, given the size of the stakes, a person familiar with the matter said it could take five or six years to fully recoup the investment. But the British government is unlikely to sell the stakes at a loss. It bought the shares of RBS and Lloyds at 65.5 pence and 173.3 pence respectively, while the two banks ' Monday closing price was only 41.3 pence and 98 pence. Some analysts believe that the interest of sovereign investment institutions in bank shares shows that the market has been convinced that the UK banking sector is supported by the government and is unlikely to see more nationalisation. The big banks that have passed the stress tests are racing to become the first institutions to repay the government's bailout money. Several banks, including Goldman Sachs, JPMorgan Chase, American Express and Morgan Stanley, are demanding repayment of government bailout funds. "The return of government money is really a big deal for these banks," he said. Peter Sorrentino, senior investment group manager at Huntington Asset Management consultancy, said that doing so would show the health of the banks and attract more customers and private capital investments. Another advantage of returning money is that it can be exempted from strict government restrictions, particularly in terms of employee remuneration and executive appointments. Government officials have told Wall Street executives that 5 to 6 big financial groups will be allowed to repay taxpayers ' money before they take their industry peers. The timing of the repayment and the number and list of the first to repay the banks are still under discussion. U.S. Treasury Secretary Timothy Geithner has said he welcomes the ability of banks to return TARP funds, but only if banks have enough capital to borrow. In his Monday speech, he said, financial markets had clearly stabilized, judging from the narrowing of credit spreads and other market indicators. The Treasury's stress tests on big banks have added to investors ' confidence, but the market is still in its early stages of recovery. According to the results of the stress test, Goldman Sachs, MorganChase does not need to add new capital, and Morgan Stanley, which needs to raise $1.8 billion trillion, has raised about $4.57 billion this month. Goldman's share price rose to 143 dollars in Tuesday, rebounding 61% from its lowest point, and Morgan Stanley's share price has rebounded from 9.68 to $28.28, almost three times times before.
The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion;
products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the
content of the page makes you feel confusing, please write us an email, we will handle the problem
within 5 days after receiving your email.
If you find any instances of plagiarism from the community, please send an email to:
info-contact@alibabacloud.com
and provide relevant evidence. A staff member will contact you within 5 working days.