2007-12-05 18:26:58 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
So do I take my money and run?????
2007-12-07 19:03:21 · update #1
now is the time to become a bait cutter!!!
2007-12-12 05:01:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
They've bought dodgy mortgage investments from Meister Capitalist Uncle Sam. It'll take a year or so to blow over but till then they're writing off some large losses. If you look out for the news today (or is it tomorrow?) you'll find out how much Royal Bank of Scotland has lost (about 2 billion last I heard).
Ooo .. err .. check out Steve B below, he knows what he's talking about.
'Take your wad and run'? You mean to Rio De Janeiro? Can I carry your bags?
(best thing to do is take out your deposits and buy their shares, if you've not already missed the boat, because this time next year they'll be worth a lot more).
2007-12-05 19:09:08 · answer #2 · answered by the norm 3 · 0⤊ 0⤋
As everyone says - sub-prime market difficulties. The trouble is - like a lot of the other major banking houses, they have been indulging in this market in the hope that they would make money. The problem is/was none of the banks knew what they were actually buying or selling. Not very bright of them - probably after the big buck and everything went wrong. As with all investing, do your research, check and check again. Simple really!
www.save-money-guide.com
2007-12-07 02:19:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
They have some 'off balance sheet' "instruments" (most likely sub-prime mortgage debt) ..
Without doubt the mortgage debt is worth something (after all, if the mortgage holders fail to pay, the houses are repossessed and sold off) .. however this debt has been 'sliced and diced' .. this could mean (for example) that they are holding only the 'top slice' (i.e. penalties and interest) which MAY not be recovered in the event of a re-possession sale .. in which case, that portion may indeed be worth zero ..
So we will have to wait to see what provisions they make ..
2007-12-05 20:39:27 · answer #4 · answered by Steve B 7 · 1⤊ 0⤋
The writedown this year is £1.3billion due to the US subprime mortgages.
Other than that Steve B says it all.
2007-12-07 01:04:13 · answer #5 · answered by Matt B 3 · 0⤊ 0⤋