Royal Bank Of Scotland Is Making Progress Slowly
The Royal Bank Of Scotland: Undervalued As Restructuring Moves Forward
Helix Investment Research • 17 Comments
Helix Investment Research • 17 Comments
Jan. 22, 2014, 11:54 AM
- Royal Bank of Scotland (RBS -1.1%) is the worst performer in the U.K. banking sector as UBS downgrades to Sell and Credit Suisse reiterates its own Sell rating. They join JPMorgan who yesterday cut to Underweight.
- Also on the mind of U.K banks today is a fall in the jobless rate to 7.1% - just 10 basis points away from the level at which the Bank of England says it will begin considering rate hikes.
Jan. 22, 2014, 10:54 AM
- JPMorgan (JPM), UBS, Credit Suisse (CS), and RBS are among the lenders (a fifth may be involved as well) looking to settle a EU probe into rate-fixing in the Swiss franc Libor rate, reports Bloomberg.
- The investigation into Swiss Libor comes alongside probes in Euribor and yen Libor in which settlements have already been reached. Sources say any fines in the Swiss investigation will be smaller than the other two due to the size of the market.
- Look for deals to be inked by the end of July.
Jan. 17, 2014, 5:14 AM
- Royal Bank of Scotland (RBS) -2% premarket after Investec's Ian Gordon told clients to short the stock ahead of its full-year results next month.
- "'Short RBS' may be a crowded trade, but after a 19% 1-month 'spike,' we think it (once again) looks attractive. There are plenty of 'micro' issues which incrementally encourage us in relation to RBS, and which evidently leave us more positively disposed to the stock than the consensual sellside view. That said, the 'big picture' of a painfully slow recovery in earnings/returns still constrains our view on valuation. As such, we now recommend reinstating short positions ahead of full-year 2013 results on 27 Feb."
Jan. 13, 2014, 7:37 AM
- The Federal Reserve reportedly joins the long list of regulatory authorities probing alleged fixing of benchmark currency rates by the banks, raising the risk they'll be penalized over lax controls as other investigators look for criminal mischief.
- Deutsche (DB), Citigroup (C), Barclays (BCS), and UBS are the gorillas in FX trading - controlling more than 50% of the market, but they're not the only ones under the microscope. A trader who used to work at RBS and is now at JPMorgan (JPM) - where he's on leave - figures prominently in the investigation.
- Citigroup on Friday fired its former head of European spot trading.
Jan. 13, 2014, 5:09 AM
- The Basel Committee for Banking Supervision has eased the way banks will have to report leverage ratios, or the amount of capital they hold against their loans and other assets.
- The regulations will not force banks to count 100% of their off-balance-sheet assets, such as much of their exposure to derivatives, and guarantees and letters of credit.
- That alterations will lower the need for banks to sell assets or raise capital to meet the Basel leverage-ratio requirements, which might be set at 3% or higher from 2018.
- The Stoxx Europe 600 Banks index is +1.5%.
- Major banks: RBS, HSBC, BCS, DB, CS, UBS, GS, JPM, C, MS, WFC, USB, BK, SAN, BBVA, LYG, NMR
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, EUFN, IPF, SEF, IAT, IYG, PFI, FXO, IXG, KBWB, KME, RKH, QABA, KRU, FINU, RWW, KBWR, RYF, FNCL, PSCF, AXFN, KRS, FINZ, EMFN, KBWX
Jan. 8, 2014, 7:21 AM
- Citing relative valuation, Credit Suisse removes its Buy rating on U.S. Bancorp (USB).
- In other news, yesterday the bank moved to boost its Chicago presence, inking a deal to buy the Charter One Bank franchise from RBS. USB will acquire about $5.3B of deposits, $1.1B of loans, 94 branches, and 800 employees for a deposit premium of about $315M, or 6% - doubling its market share in the city.
Jan. 8, 2014, 2:33 AM
- The SEC and the special inspector general for TARP (Sigtarp) are reportedly probing several major banks over whether they deliberately mis-priced residential mortgage bonds after the financial crisis hit.
- The suspicion is that traders exploited the fog of the crisis to cheat clients by buying or selling the debt at artificially high or low prices from 2009-2011.
- Most of the usual suspects are under investigation, including JPMorgan (JPM), Barclays (BCS), Citigroup (C), Deutsche Bank (DB), Goldman Sachs (GS), Morgan Stanley (MS), Royal Bank of Scotland (RBS) and UBS (UBS).
Dec. 29, 2013, 4:04 AM
- U.S. District Judge Harold Baer has widened the scope of class-action litigation over the sale of over $34B in mortgage bonds.
- Investors can now join together to sue Citigroup (C), Goldman Sachs (GS) and UBS (UBS) over an estimated $11.9B worth of paper. They can also proceed with a case against RBS (RBS) involving $22.5B worth of debt.
Dec. 17, 2013, 6:57 PM
- Reuters reports the DOJ is getting set to file civil fraud charges against Citigroup (C) and Merrill Lynch (BAC) over MBS sales made during the financial crisis. In addition, probes of RBS and Credit Suisse (CS) are said to be "progressing."
- The report comes a month after JPMorgan reached a $13B settlement with the DOJ and other agencies
- Previous: DOJ plans more MBS fraud cases in 2014
Dec. 11, 2013, 3:59 AM
- RBS (RBS) Finance Director Nathan Bostock has resigned after just 10 weeks in the job and is returning to Santander (SAN), where he has held several senior roles.
- Bostock will become the chief risk officer and deputy CEO at Santander's U.K. operations, which are set to be spun off at some point and separately listed.
- Bostock's departure is the latest blow for RBS as it carries out a review of its operations; last month, for example, IT problems left over 1M customers stranded.
- Shares are -1.6% in London.(PR)
Dec. 4, 2013, 5:51 AM
- As flagged, the EU Commission has fined international banks €1.71B for the manipulation of inter-bank interest rates, including.
- The banks fined are Citigroup (C) [€70M], Deutsche Bank (DB) [€726M], Royal Bank of Scotland (RBS) [€391M], JPMorgan (JPM) [€79.9M] and Societe Generale (SCGLF) [€446M].
- UBS (UBS), Barclays (BCS) and Citigroup helped expose the cartels and so received immunity for their violations. UBS avoided a fine of €2.5B and Barclays €690M, while Citigroup's was €55M lower as a result.
- The EU has opened proceedings against HSBC (HSBC) and Credit Agricole (CRARF), as well as against JPMorgan (JPM), for Euribor infractions. JPM's fine is for Tibor violations. (PR)
Dec. 4, 2013, 4:57 AM
- The EU Commission will reportedly fine a group of leading multinational banks €1.7B for rigging inter-bank interest rates in what would be the largest antitrust penalty that the commission has ever levied.
- The banks to be fined include all the old favorites - Citigroup (C), Deutsche Bank (DB), Royal Bank of Scotland (RBS), JPMorgan (JPM) and Barclays (BCS), as well as Societe Generale (SCGLF).
- The banks have admitted liability in return for a 10% reduction in their punishment.
- However, HSBC (HSBC) and Credit Agricole (CRARF) are contesting the proposed sanctions from the EU and are set to be formally charged today.
- UBS (UBS), which paid $1.5B to U.S. and U.K. authorities for similar sins, is escaping a penalty, as it alerted the EU to the Libor and Tibor cases.
- EU Competition Commissioner Joaquin Almunia is due to announce the penalties at a press conference at 5:30 ET.
Dec. 3, 2013, 1:44 PM
- HSBC (HSBC -1%) is the downside outlier in a green U.K. banking sector after Nomura downgrades to Hold.
- In other U.K. banking news, RBS is forced to issue an apology for another technical glitch which left customers unable to access their accounts through ATMs, or pay for purchases with debit cards.
- CEO Hester: "Last night’s systems failure was unacceptable ... For decades, RBS failed to invest properly in its systems. It will take time, but we are investing heavily in building IT systems our customers can rely on.”
Nov. 27, 2013, 4:55 AM
- The U.K.'s Serious Fraud Office (SFO) is reportedly thinking of starting a criminal investigation into accusations that RBS (RBS) looked to profit by forcing "vibrant" small companies out of business and then seizing their assets.
- The SFO has been interviewing former executives of affected firms. The agency is deciding whether RBS acted unlawfully or just engaged in bad business practices.
Nov. 24, 2013, 4:48 AM
- The British government is reportedly set to accuse RBS (RBS) of forcing "vibrant" small businesses into financial trouble, "squeezing them for exorbitant fees and charges, and ultimately seizing their assets to swell its own vast property empire."
- The allegations are part of a report by businessman Lawrence Tomlinson, who is a key adviser to Business Secretary Vince Cable. The report is due to be released tomorrow.
Nov. 22, 2013, 7:21 AM
- “The bank clamped down on this big time. I think we were even going slightly overboard on this,” says one senior banker after a number of lenders including Barclays (BCS), Citigroup (C), and RBS banned the use of most chat rooms amid probes into rate manipulation.
- Most of the rooms in question are those where traders from competing banks participate - it's these on paper conversations where investigators are likely to draw the fuel for their anti-competitive practice charges. JPMorgan (JPM) is reportedly examining whether these conversations should instead be carried out over the phone.
- Previous: "The Bandits Club" and "The Cartel"
Royal Bank of Scotland Group Plc operates as an international banking and financial services company that provides a wide range of products and services to personal, commercial, and large corporate and institutional customers through its two principal subsidiaries: The Royal Bank of Scotland Plc... More
Industry: Money Center Banks
Country: United Kingdom
Other News & PR