Is it time to invest in the UK`s big five banks?

Question

Their share prices have fallen by an enormous amount this year, and the shares are offering massive dividends. Its very tempting don`t you think?

Answer 1

You better invest in oil in Russia where you are not charged except when you wish to  buy off.England is known for their exhorbitant tgax charges but little income.

Answer 2

The banks are still making massive profits just not as much as before. B AND B dont touch them they could go broke. They have to many buy to let morgages. I think the others are worth the risk only because how cheap they are. HSBC have done well through troubled times so far but that reflects in the price. They will all cut their dividends no doubt but if you can sit tight through the storm things will improve in the long term. I got some Hbos this week not to many though they were just to cheap for me to resist.

Answer 3

I would only be tempted by Lloyds and HSBC. They haven't been as reckless and they have stronger balance sheets. I realise that their shares haven't fallen nearly as much as the others, but there is a good reason for this.

Most of the Banks are a long way from being out of the woods yet, the economy is weakening, house prices falling, and the crunch could easily get worse, it certainly is in the US.

The Banks could easily cancel/reduce their dividends. To not do so could be regarded as reckless. They are still asking the BOE for additional help. The Banks collectively have been almost forced to underwrite the B&B rights issue, after Lloyds & HSBC refused to take over the Bank at the behest of the BOE. If that issue had failed, the HBOS 4.5billion rights issue would have been put in jeapordy. Now, that would have been very serious, because it is a major Bank with large corporate clients. That's why the Treasury have been in such a panic behind the scenes.

You could chance your arm, but remember, the market has hammered their shares for a reason.

Answer 4

I would not.

The UK has more debt per capita than the average USA household. This is not a good sign.

High dividend stocks are a sign of financial trouble. Expect to see banks cut their dividends in order to help shore up their bad real estate loans.

Been short HSBC, expect to continue to fall.

Answer 5

Well Considering the bank charges these bank put on their customers, I wouldn't think of investing in them and giving their fat-cat bosses more profits.

Answer 6

Invest in the Bahamas and the Cayman Islands!!!