Metro Bank

Money, investing, mutuals etc
Boro Boy
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Re: Metro Bank

Post by Boro Boy » Mon May 13, 2019 9:27 am

pabenny wrote:
Mon May 13, 2019 6:54 am
Yes - for investors.

Think of Co-op Bank, Bradford and Bingley, Northern Rock, etc where the shareholders were largely or fully wiped out.

I foresee a managed acquisition by another bank (maybe one like Yorkshire) which will allow them to acquire the customers and the technology platform while losing the (costly) branch network. All depends on whether the tech is actually any good under the bonnet.
We are told by the powers that be, that under modern regulations those situations could not occur again...!?!

planteria
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Re: Metro Bank

Post by planteria » Mon May 13, 2019 9:35 am

is the discussion re Investing In MetroBank or Investing With MetroBank?

pabenny
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Re: Metro Bank

Post by pabenny » Mon May 13, 2019 11:01 am

planteria wrote:
Mon May 13, 2019 9:35 am
is the discussion re Investing In MetroBank or Investing With MetroBank?
I think you mean depositing with MetroBank. Investments are not covered by the FSCS.*
Boro Boy wrote:
Mon May 13, 2019 9:27 am
We are told by the powers that be, that under modern regulations those situations [acute bank distress] could not occur again...!?!
Banking regulation is about protection of depositors and ensuring liquidity. It achieves this by regulating the capital base (ie shareholder funds). Whilst regulation makes it less likely that shareholders will be fully wiped out, it doesn't protect shareholders from loss


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* There is some coverage for investment intermediaries, but this doesn't apply to the underlying investment.

Boro Boy
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Re: Metro Bank

Post by Boro Boy » Mon May 13, 2019 12:48 pm

pabenny wrote:
Mon May 13, 2019 11:01 am
planteria wrote:
Mon May 13, 2019 9:35 am
is the discussion re Investing In MetroBank or Investing With MetroBank?
I think you mean depositing with MetroBank. Investments are not covered by the FSCS.*
Boro Boy wrote:
Mon May 13, 2019 9:27 am
We are told by the powers that be, that under modern regulations those situations [acute bank distress] could not occur again...!?!
Banking regulation is about protection of depositors and ensuring liquidity. It achieves this by regulating the capital base (ie shareholder funds). Whilst regulation makes it less likely that shareholders will be fully wiped out, it doesn't protect shareholders from loss


---
* There is some coverage for investment intermediaries, but this doesn't apply to the underlying investment.
The understanding is given that the banking regulations also embody the stability of the UK Banks as well as their deposit holders... Financial stress tests have been organised by BofE in the recent past.

planteria
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Re: Metro Bank

Post by planteria » Mon May 13, 2019 1:05 pm

shares dropping further this morning. now down 75% since January.

https://www.bbc.co.uk/news/business-48252997

Sarah
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Re: Metro Bank

Post by Sarah » Mon May 13, 2019 1:09 pm

Boro Boy wrote:
Sun May 12, 2019 1:03 pm
Still time to pile in...!?!
Did you mean long or short? :P

pabenny
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Re: Metro Bank

Post by pabenny » Mon May 13, 2019 1:09 pm

The Bank of England's annual stress tests are of the largest financial institutions; smaller businesses such as Metro are required to carry out their own stress tests.

A bank that "fails" it's stress test will have to agree actions with the BoE to remediate, which *could* include a managed takeover as we continue to see happening with smaller/weaker building societies. In those cases, the members got nothing for relinquishing control. This is the outcome I foresee for Metro and clearly the markets are equally pessimistic.

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Re: Metro Bank

Post by Boro Boy » Mon May 13, 2019 1:41 pm

Sarah wrote:
Mon May 13, 2019 1:09 pm
Boro Boy wrote:
Sun May 12, 2019 1:03 pm
Still time to pile in...!?!
Did you mean long or short? :P
Long, one would hope it can only start to recover now as its business plan is sound and adjustment for its recent mishap must have surely now of happened...

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Re: Metro Bank

Post by pabenny » Mon May 13, 2019 1:51 pm

How much are you investing in Metro Bank shares?

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Re: Metro Bank

Post by William Joseph1 » Mon May 13, 2019 5:50 pm

It is polite to thank a post. If you like it or if you feel it has helped you. Use the thumb up on the top right of the post.

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