Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Anyone buying LYG? It seems they are widely considered the champion of large banks in the UK. They've announced some write-offs, a refusal to raise capital, and a US currency exchange lawsuit of some sort since the original rec... driving the stock down 25% from where Nathan picked it. The yield is now near 13% - seemingly insane.

The housing crisis is now feared to cause more pain to large US banks going forward than the credit crisis, though credit spreads continue to hurt the banks.

Does anyone have any information on LYG's loan to value ratios on its portfolio of loans? It seems that the next wave of pain for banks in the US is going to be the mortgage defaults by prime borrowers who are underwater on their real estate - thus walking away in spite of being able to make the payments. Is this happening in the UK? Is it likely to pose big trouble for banks?

Any other sage words about LYG?

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.