Blue Monday Crash 2009
Encyclopedia
On Monday, 19 January 2009, a date previously known as Blue Monday
, British banking shares collapsed in a rout of selling after Royal Bank of Scotland
(RBS) announced the biggest corporate losses in British
history. The shares fell over 67% in a single day. Shares in all other British banks suffered heavy losses.
The next day Lloyds Banking Group
and Barclays fell sharply again. RBS and HSBC
continued to fall.
There was speculation that nationalisation was imminent.
Billions of pounds were wiped from its stock market value despite the Government’s pledge to keep it afloat with more money from the taxpayer.
As Gordon Brown
set out plans to increase public ownership to 70 percent of what was once one of the world’s biggest financial conglomerates, City
investors dumped the shares in a selling frenzy.
RBS, worth £75 billion only two years ago, is now valued at £4.5 billion, even though it received £32 billion from taxpayers and shareholders less than three months ago.
Blue Monday (date)
Blue Monday is a name given to a date stated, as part of a publicity campaign by Sky Travel, to be the most depressing day of the year.This date was published in a press release under the name of Cliff Arnall, at the time a tutor at the Centre for Lifelong Learning, a Further Education centre...
, British banking shares collapsed in a rout of selling after Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
(RBS) announced the biggest corporate losses in British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
history. The shares fell over 67% in a single day. Shares in all other British banks suffered heavy losses.
The next day Lloyds Banking Group
Lloyds Banking Group
Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
and Barclays fell sharply again. RBS and HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
continued to fall.
RBS
News reports on RBS indicated a £28 billion loss for 2008, and the UK government pledged to increase its stake in the company to 70% .There was speculation that nationalisation was imminent.
Billions of pounds were wiped from its stock market value despite the Government’s pledge to keep it afloat with more money from the taxpayer.
As Gordon Brown
Gordon Brown
James Gordon Brown is a British Labour Party politician who was the Prime Minister of the United Kingdom and Leader of the Labour Party from 2007 until 2010. He previously served as Chancellor of the Exchequer in the Labour Government from 1997 to 2007...
set out plans to increase public ownership to 70 percent of what was once one of the world’s biggest financial conglomerates, City
City of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...
investors dumped the shares in a selling frenzy.
RBS, worth £75 billion only two years ago, is now valued at £4.5 billion, even though it received £32 billion from taxpayers and shareholders less than three months ago.
Monday, 19 January 2009
- RBSRBS-Banking:* Royal Bank of Scotland - Scottish high street bank** Royal Bank of Scotland Group - A majority British state owned Scottish holding company, which owns Royal Bank of Scotland, NatWest and others-Defence:...
~67% - Lloyds Banking GroupLloyds Banking GroupLloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
~ 33% - Barclays ~10%
- HSBCHSBCHSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
~6%
Tuesday, 20 January 2009
- RBSRBS-Banking:* Royal Bank of Scotland - Scottish high street bank** Royal Bank of Scotland Group - A majority British state owned Scottish holding company, which owns Royal Bank of Scotland, NatWest and others-Defence:...
~11% - Lloyds Banking GroupLloyds Banking GroupLloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
~31% - Barclays ~17%
- HSBCHSBCHSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
~3%