Lloyds Bank

A tale of three AGMs

by Cliff Weight Last week I went to 3 AGMs. Aviva on Wednesday, 10 May in London and then Lloyds in the morning of the 11th and RBS in the afternoon, both in Edinburgh. Aviva was very well attended with about 600 people in the Queen Elizabeth Centre. There were plenty of displays of the Aviva products, lots of staff to explain them and deal with any customer issues or complaints. There were also stands explaining the business (noticeable by its absence was ...

Lloyds Bank – No Shares For Private Investors

The Government has confirmed, as previously rumoured, that its stake in Lloyds Banking Group is to be sold to institutions alone. There will not be an offer to private investors as was formerly indicated would take place. Chancellor Philip Hammond said "Returning Lloyds to the private sector is in the interests of the bank, taxpayers and the country as a whole" and "That is why exiting our stake in Lloyds in an orderly way and at the best possible price is one ...

Where Bonds are Concerned, Trust No-One

The news that the holders of Lloyds bonds (ECNs) have lost their legal battle in the Supreme Court reinforces the message that when it comes to investing in bonds, you should trust nobody - not the issuer of the bonds, your friendly stockbrokers and wealth managers who advise you, or the FCA to protect your interests. The bondholders won their case initially in the lower courts, that Lloyds should not be able to force redemption of these bonds at par. But after ...

More Bad News for Banks and their Investors

If there are any private investors still invested in major UK listed banks, last week (w/e 30/1/2016) was yet another for disillusionment. In the Financial Times, Lex hit the nail on the head when he said "The one-offs keep on coming. If one did not know better, one might suspect them of being two-, three-, or more-offs". He was referring to Royal Bank of Scotland (RBS), but other banks likewise posted bad news during the week. Let's take them in turn: RBS ...

Lloyds Bank ECNs and the FCA

Investors in Lloyds Bank Enhanced Capital Notes (ECNs) lost the second round of their battle to stop Lloyds redeeming them at par in the Appeal Court. They previously won the case in a lower court, and are now planning to appeal to the Supreme Court. These ECNs are held by many retail investors, having been converted from PIBS issued by Halifax and the Cheltenham & Gloucester Building Society. Lloyds is apparently arguing that the wording of the conversion terms, on which basis ...

Goodwin still on the hook for RBS debacle

The Herald newspaper have reported an astonishing attempt by the lawyers for Royal Bank of Scotland (RBS) to have Fred Goodwin excluded from the legal case over the rights issue in 2008. They wanted four former directors removed from the case so as to streamline proceedings. However the judge presiding over the case threw this attempt out. The directors signed off the prospectus and hence should surely be accountable for what the plaintiffs claim was a misleading document. But the lawyer for ...

Lloyds Bank stake sale

The Government is selling 6% of the shares it holds in Lloyds Banking Group at about 75p via a placing. That is marginally more than the shares cost them when it bailed out the company after the disastrous takeover of HBOS, which many shareholders still feel very disgruntled about.If the Government is selling, should private investors now be looking to buy? After all the shares have doubled in price in the last year, well outpacing most other UK banking stocks.  But ...