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Bank share prices fall despite being given taxpayer money

  2. phillyharper
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Maybe it's too early to tell, but despite being given a cash injection from UK tax payers, HBOS closed down 27.5%, Lloyds TSB was 14.5% lower and RBS down 8.4%.

Since we now own as much as 60% of of RBS and 40% of the merged Lloyds TSB and HBOS that means that it's now us that are making a loss, not just the banks. Gordon Brown's long term plan is to sell the shares in the banks at a profit for the taxpayer but the stakes couldn't be higher since he's playing with our money.

"We must now put in place new structures and new rules for the future. This cannot simply be a short-term rescue to paper over the cracks. Only a surgical approach that gets to the root of the problem will now work to ensure the problems do not return."

Was this the right move?
phillyharper

1 responses // Bank share prices fall despite being given taxpayer money

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    Such a fall in share price was only to be expected since the Government has now 'muscled' its way into the dividends payable to shareholders. Now a share in the bank on the open market won't provide the payback it did prior to the bailout, ergo, the price falls.

    toshiba

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