I’ve made a couple of new purchases for my SIPP that I thought I’d mention. I’ve bought RBS and Lloyds quite aggressively. My reasoning is that the government has insured their toxic assets. Also, Lloyds may find that it quickly starts to get cashflow from Joe Public as they are such a big mortgage player and that the public are repaying their mortgages as fast as they can. Therefore, I don’t see Lloyds going out of business.
RBS on the other hand is a more risky prospect as so much of past revenues were made from investment banking. However, as long as they are not nationalised, there could be great upside. I got in RBS around 20p and Lloyds around 50p. I put the biggest proportion into Lloyds.
P.S. my SIPP is now around £11,000 – I’m now nearly immune to the losses.