Taxpayers Profit from Banks, Shocker!
Discussion
fido said:
HundredthIdiot said:
Don't know anything about the APA.
It's an insurance scheme. In this case the APA will payout 90% of any losses above £60bn. Simples."He added that he thought RBS was most likely on track to leave the APS in 2012, however he said there were several factors that could hamper the bank's recovery.
One of the main worries for RBS remains the likelihood of a medium-term increase in interest rates, with the APA saying that the currently low interest rates was the main reason the losses on the portfolio had not been higher. "
If current losses are already £57bn on £231bn assets, then breaking £60bn before 2012 doesn't seem that much of a stretch. I wonder how they've arrived at the 10% probability.
A bit early to call this one, surely?
HundredthIdiot said:
If current losses are already £57bn on £231bn assets, then breaking £60bn before 2012 doesn't seem that much of a stretch. I wonder how they've arrived at the 10% probability.
A bit early to call this one, surely?
No they are projecting losses to be £57bn by 2012, based on current & projected default rates, interest rates etc. so the APA are expecting to make a profit based on (premiums - payout).A bit early to call this one, surely?
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff