JP Morgan doubts Barclays, Lloyds and RBS

Incredible how many people in the UK are still prepared to risk their money on the word of Gordon Brown. Lloyds and HBOS shares rallied today in London but JP Morgan, here, this afternoon has warned:

In a broker note, the investment bank highlighted the new combined Lloyds/HBOS entity as needing to undertake a €5.7 billion (£4.5 billion) writedown, while Barclays needs to writedown €3.7 billion.

Meanwhile, it added that all three UK banks faced the prospect of having a core tier one capital ratio below 6%.