Two U.K. Bank Sinkholes

This comes via the Telegraph:

UK Financial Investments (UKFI) said in its annual report that its loss on the two stakes – 70pc of RBS (RBS) and 43pc of Lloyds Banking Group (LYG) – had reached £10.9bn at the end of June.

The losses, which are not yet realised, have been wracked up since Gordon Brown was forced to inject billions into the troubled lenders in October.

The investment, which amounts to more than £3,000 that each UK household, will not be quickly disposed of. The recession is continuing to hit both banks hard.

You can forget about generating profits. It’s not going to happen. After all, we’re looking at another £13 billion in losses. The UKFI should focus on mitigating losses. That is a believable story.

Comments

[Davewmart:]

What, no tooth fairy? ;-)

Jul 13 01:36 PM

[tireman63:]

BOUGHT RBS LAST YEAR--MUST HAVE A FECALITH IN MY CIRCLE OF WILLIS

Jul 13 01:46 PM