RBS shares have been on a huge bull run recently, going from 33p to 53p. That is quite some move. Today the shares are back down to 44p as I write. Why?
Well, as RBS have new management unlike Lloyds, they are being more honest about their situation. They see 2 years of losses until recovery. RBS sees its bad debts and is struggling to trade through them.
The Government Asset Protection Scheme is expensive, even if it does save the bank. There is not much good news here at all. The bank is not about to go under, but it is not about to become profitable either.
The FTSE has been on a huge run recently, I wonder if this set of key results will mark a turning point.