Whats the investec exposure to the toxic assets?. Whats their prospects on the medium term. Anyone looking at bottom feeding this one. For that matter whats the best banking shares to aquire with the supports coming up again?
There was a report (I think in Moneyweb) earlier this week that some of the UK clients were exposed to Madoff. (Speaking under correction, I remember a figure of 0.8% of assets under management.) Apparently they were not allowed to invest in Madoff's scheme in this country, so regulation saved their South African clients. I'm not sure though that this is a big issue - all financials seem to be coming under intense pressure, what with all the latest "bailout" and "shareholder dilution" news.
The difference between Investec and other major banks like Citibank or Bank Of America is the manner in which they handled the Public Relations side of the crisis. The stiff upper lip and limited if non-existent press releases from Investec was an indication to their clients that all was under control, which in fact it may well not have been. This prevented fear and panic, or the horror-of-all-horrors, a run on the bank.
what i find awesome that the world's biggest bank, citibank traded last night at $2.45 - R24.50 per share and our own SBK is trading at R75.00 per share and that citi is going to split up in many companies weird
They will continue dropping and rightfully so, as we havent seen the worst yet. Secondary bail-out and the fed must find the money somewhere.. As someone mentioned earlier, good banks should have been supported, and those in trouble should have been tossed to the wolves. The precident being set here is that if an institution screws up, government is there to bail them out.