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Aceuk - Sun, 02 Jan 05 :

And that is part of the reason I remain a stubborn holder of LLOY - LloydsTSB has not been busy looking for exposure externally as three higher rated banks, more drawing in the hooves and being careful. Why take 5% when you've got 8%?

One of the dark clouds is exposure to Private Equity, something I am only just starting to get my head round. I remain resistant to the idea that money can be generated out of thin air (such as by hedge funds) and I have only just come to see Private Equity consists of maybe only 25% exactly that, and 75% leverage through the banks.

Still surprised to see many pickers going for BARC despite its strong run since August, basically they seem only to be citing takeover possibility by Citigroup. To my little mind could not see Citi going for the more mature Barclays as against LloydsTSB which has a lot more growth potential: For one Goldfish versus Barclaycard.


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