
NOTICE THE HIGH VOLUME ON THE GRAPH IN JANUARY 2009 LOTS OF SELLING NOT SHORT SELLING.
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CLICK GRAPH TO SEE MORE CLEARLY
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So the government does not want to nationalise Banks.
Well let us have a look at RBS for a start.
RBS closed on Friday the 23.1.09 at 12p and is down 78.51% since 31.12.08.
On 19.1.09 the £5 billion preference shares that the government owned in RBS were converted to ordinary shares at 31.75p thus HM government having an extra 15.748 Billion shares in RBS giving it a 70% plus holding.
My solution is for the institutions to buy say 15.748billion shares in the market with say 40 institutions the cost would be £5.9055 million that would give each institution 39.27 million shares
they would also receive 39.27 Billion free shares from the government.
They would have a clause put into each holding institution that they could not sell the holding for 12 months.
What that would do would put a floor to the share price H.M Governments holding would be reduced to 50%.
I am aware that the loss of HM government would be £5 billion but we could see a rise in RBS.
I would think it is a better prospect than RBS being nationalised.
If RBS was nationalised there would be compensation to the the shareholders and that would be costly. Much more the costly than the £5Billion write off.
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