Unseemly Haste in RBS Action: Ingram

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Nov. 01 (Bloomberg) -- Michael Ingram, Market Strategist at BGC Brokers, discusses the announcement by RBS to set up an internal bad bank. He appears on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Am troubled by what rbs had to say today.

Not only are the numbers extremely poor, the consensus was looking for a 4 414 million pounds profit, but i said it posted a deficit of over 800 million pounds.

It just seems like it is unseemly haste the.

Is been five years since the financial crisis.

Aggressing best thing would've been to have done it u.s. style ta rp.

Does the same thing that europe should've done, but there's no one around to write a check.

Europe will eventually confront us with the hq are over the next few months, but having worn these on the balance sheet for five years, i don't know if you got of the points crisis, they would've maximize shareholders by running these things off on a more timely manner.

Is that politically linked?

To think they would be push to accelerate the process e i think so and the previous management team is comfortable with the flotation of citizens in the first quarter of 20 "countdown" 2015. that is a very aggressive timetable.

It took three years to run the whole for not.

What is that mean?

What are we doing these bad assets?

Just fine sellers which will probably crystallize losses if they were prepared to dispose of them.

If you're given a timetable like that and you are to find sellers, it puts one hand behind your back, doesn't? it could be perceived as a fire sale.

I think the markets are going to be quite worried about this or a bearing in mind as well, where the share prices and most target analyst prices are, -- well, -- at what level, the breakeven level is five pounds, isn't it?

Give me a horizon when that is possible.

Akamai crystal ball out.

I would say we'll probably see them in about three years.

You say that perhaps they brought forward the timetable of some of these disposals, including citizens in the u.s., does that not make sense to get rid of some of these assets?

The us economy according to many economist is recovering.

Might be a good time to sell a can of asset.

You could make that case.

You could say s&p bank index is up by 30% this year.

You could say that the market for the u.s. regional bank, which is what citizens is, is more healthy when they last the third timetable on the proposal.

All the same, if you piece it together, it's a partial -- the departure stephen hester, you have to feel there is a political dimension.

But the volatility of the share price performance.

Clearly, investors are saying that there is plenty of risk in this bank stock right now.

Feeling bullish to the end of the year or not?

All this talk now of ecb rate cuts, tapering in the u.s. is a 2014 story, so we go from tape wereer ---- more liquidity -- i think so.

Technicals look hard strong.

Fundamentals look rather less so.

Most markets are back at precrisis multiples.

The earnings season, particularly in europe is very mixed.

Michael ingram joining us from bgc brokers this friday morning.

"on the move" is next.

You will be alone next week, 91 you will be with jonathan ferro.

Have a good weekend.

This text has been automatically generated. It may not be 100% accurate.


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