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(From Business and Finance)
Have bank shares bottomed at last? Only the brave would say so, but hope is dawning. When Royal Bank of Scotland dived to 149p, the skies seemed to be caving in, taking its market value down to Stg 24bn - after a Stg 12bn rights issue and last year's Stg 50bn ABN AMRO acquisition. RBS has since bounced above the Stg 2 rights price, taking its valuation back to Stg 34bn.
Is there enough good news to justify this? Arguably: smaller lenders are being tidied up, cutting the risk of another Northern Rock.
Alliance & Leicester, an old flame of the Bank of Ireland, will be sold to Spain's
Santander, barring a counterbid. Bradford & Bingley may be bought once its rights saga ends. Buy-to-let ...