RBS and Lloyds capital raisings are “seriously bonkers”
November 9th, 2009
John Angus Morrison has bitten the bullet and said what alot of us are thinking about the proposed capital-raisings from Lloyds Banking Group and RBS.
John Angus, a risk-management expert at Brussels-based Asymptotix Risk, believes both the monster cash calls are “seriously bonkers”. There is so much uncertainty involved (not least because of multitudinous legal actions against the former HBOS), that investors would be far better off pissing their money away on the roulette tables. It would probably be more fun too.
In a blog post titled “Why the RBS and Lloyds Capital raising are seriously bonkers”, he writes:-
“You do not buy an obvious ‘pig in a poke’ no matter how little the government is trying to sell it to you for!
“It is hubristic and hypocritical to participate in this offer and criticize the casino-mentality for getting us here, at the same time. This paper [the new shares the bank’s are issuing] is the biggest roulette chip I have come across, in several years.”
To read Morrison’s original blog post click here. To read what the Lloyds Shareholder Action Group, part of UKSA has to say about the proposed capital-raising, click here. They are not happy bunnies.
Short URL: https://www.ianfraser.org/?p=964
Posted by Ian Fraser
on Nov 9 2009. Filed under Blog.
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