Double digit gains for many of the banks today as a "bad banks" plan was outlined by Barack Obama. The FDIC (Federal Deposit Insurance Corporation) would absorb toxic assets, therefore shoring up balance sheets if the plan is agreed.
The uncertainty of "who holds what" assets is still seizing up liquidity and compounding nervous feelings about the toxicity of assets each bank holds. The proposed plan would get things out in the open and instill confidence into the system once again.
Just the possibility of this happening added 44% to Lloyds share price and 34% for RBS ( The Royal Bank of Scotland).
For those of you who like a risky punt, banking shares are still looking cheap and if this incentive is given the green light you could make considerable returns.
He who dares............................
Wednesday, January 28, 2009
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment