LLOYDS have just reported a 23% rise in pre-tax profits to £3.1 billion.
Mr Horty Nosorio, LLOYDS CEO, claims that the bank won’t have to add much to its PPI compensation contingency- almost £20 billion and still rising.
However he makes no mention of the billions of legal claims which his bank is currently facing.
At the May AGM Noel Edmonds asked the chairman Lord Blackliar if it was true that Lloyds annual spend on lawyers is £1.2 billion. The response was “that it was not a figure that Lloyds recognised”.
In other words, and remember the LLOYDS Chairman has a history of lying, they do indeed spend over £1 billion every year fighting legal claims.
One LLOYDS insider claims that the bank are currently facing claims which, if successful, would eclipse the £40 billion capitalisation of Lloyds. Or to put it another way- if LLOYDS have to pay out on all the outstanding compensation claims the bank will collapse.
When will a financial journalist asked Mr Horty Nosorio to provide shareholders with the exact value of outstanding legal claims? And how will he respond? The truth is that many City analysts are well aware of the vulnerability of the U.K.’s most toxic bank but continue to recommend investors purchase shares.
So why is the share price so dismal (currently 63p) if LLOYDS is a sound investment?
The simple answer is that wise investors are well aware of the impending explosion of compensation payments, which LLOYDS is desperate to keep secret, and until they’re all settled the fear remains that the very future of the bank is extremely uncertain.