Metro Bank

Money, investing, mutuals etc
Boro Boy
Posts: 5048
Joined: Mon Sep 15 2014 6:05pm
Location: London
Has thanked: 982 times
Been thanked: 2013 times

Re: Metro Bank

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

pabenny wrote:
Mon May 13 2019 6:54am
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
Posts: 6361
Joined: Tue Nov 23 2010 4:52pm
Location: England
Has thanked: 702 times
Been thanked: 1670 times
Contact:

Re: Metro Bank

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

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

pabenny
Posts: 2732
Joined: Tue Jun 29 2010 5:21pm
Has thanked: 710 times
Been thanked: 2177 times
Contact:

Re: Metro Bank

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

planteria wrote:
Mon May 13 2019 9:35am
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 9:27am
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.

Boro Boy
Posts: 5048
Joined: Mon Sep 15 2014 6:05pm
Location: London
Has thanked: 982 times
Been thanked: 2013 times

Re: Metro Bank

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

pabenny wrote:
Mon May 13 2019 11:01am
planteria wrote:
Mon May 13 2019 9:35am
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 9:27am
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
Posts: 6361
Joined: Tue Nov 23 2010 4:52pm
Location: England
Has thanked: 702 times
Been thanked: 1670 times
Contact:

Re: Metro Bank

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

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

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

Sarah
Posts: 5829
Joined: Sat Jun 26 2010 10:01am
Has thanked: 432 times
Been thanked: 4414 times
Contact:

Re: Metro Bank

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

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

pabenny
Posts: 2732
Joined: Tue Jun 29 2010 5:21pm
Has thanked: 710 times
Been thanked: 2177 times
Contact:

Re: Metro Bank

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

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.

Boro Boy
Posts: 5048
Joined: Mon Sep 15 2014 6:05pm
Location: London
Has thanked: 982 times
Been thanked: 2013 times

Re: Metro Bank

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

Sarah wrote:
Mon May 13 2019 1:09pm
Boro Boy wrote:
Sun May 12 2019 1:03pm
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...

pabenny
Posts: 2732
Joined: Tue Jun 29 2010 5:21pm
Has thanked: 710 times
Been thanked: 2177 times
Contact:

Re: Metro Bank

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

How much are you investing in Metro Bank shares?

Richard Frost
Posts: 13232
Joined: Tue Jun 29 2010 8:14pm
Location: The Isle of Dreams
Has thanked: 2874 times
Been thanked: 6862 times

Re: Metro Bank

Post by Richard Frost » Mon May 13 2019 5:50pm


Post Reply

Who is online

Users browsing this forum: No registered users and 21 guests