Barclays and RBS shares suspended from trading after tanking more than 8%
Bloomberg: British Banks Extend Brexit Plunge After Mass Analyst Downgrades
* Analysts slash earnings estimates as U.K. votes to leave EU
* Trading in Barclays and RBS briefly halted after 10% drop
The U.K.’s largest lenders accelerated the biggest fall since 2009 on Monday after the nation’s vote to leave the European Union sparked fears about political and economic risks and the sharpest negative shift in analyst sentiment on record.
Analysts downgraded Barclays Plc, Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc en masse, cutting their earnings outlooks as investors seek to comprehend the fallout from Brexit. The average share-price estimate for these banks dropped more than 13 percent in the past two trading days, while all three lenders had ratings on their stocks cut by at least six analysts.
RBS plummeted as much as 25 percent in London trading, reaching the lowest levels since January 2009, after it was bailed out by British taxpayers. Barclays shares were on pace for an even bigger decline than on Friday, falling 19 percent at 12:56 p.m. in London. Trading in both banks was halted earlier in the day amid the rapid drops.
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Update #1: Shares in Barclays, RBS and building firms suspended as Brexit sends prices plunging (Mirror).
Update #2: Brexit vote hits pound and markets, political crisis deepens (Reuters)
WNU Editor: If this continues, assistance from the Bank of England will not be enough .... Carney Pledges $345 Billion to Fund First Line of Brexit Defense (Bloomberg).