UK Banks Shift Hard-to-Sell Assets Into Pension Funds

Discussion in 'Economics' started by nutmeg, Aug 22, 2011.

  1. What a great idea. *sarcasm*

    Some of Britain’s biggest banks have begun quietly ridding themselves of billions of pounds of assets they have found difficult to sell following the financial crisis, moving them off their balance sheets and into staff pension funds.

    "comprising a portfolio of assets ranging from subordinated debt to asset-backed securities,"

    cont on link.
  2. m22au


    Today the 3 dodgy big-cap UK banks (RBS, LLOY and BARC) are all trading worse than US and European banks, even Intesa and BAC and the French banks.

    Not sure what the "reason(s)" for this is/are, but maybe unfunded pension liabilities is part of this.

    Possibly also the fear that any future bailout for RBS and LLOY mightn't be so kind on shareholders, given that there is already substantial govt ownership of those two banks.
  3. What? Assets so crappy that even the Federal Reserve won't take them onto their balance sheet?