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Hello Community,
Has anyone bought "Preferred Shares" from any Lebanese banks and know what will happen to them ?
Any official decision was issued from Central bank or any other bank regarding the preferred shares ?
Many Thanks,
consider them gone
It's a nice donation for the wealthy.
are they officially gone ?
are they officially gone ?
officially no , but i have 15k in shares in BLF .. and from what I understood it is practically impossible to cash them now ( they need to buy them to another investor to cash out the money )
are they giving any interest on them ?
are they giving any interest on them ?
They are shares, their price changes depending on the banks' performance.
are they giving any interest on them ?
weirdly yes .. but they are just numbers .. fake dollars aka lollars
Considering the situation it is better than nothing
Considering the situation it is better than nothing
DO NOT BUY THESE. Preferred shares fall under the equity section of a bank, they have a value of ZERO right now, since the banks incurred a lot of losses mainly from government not paying the EBs. Once the banks book these entries, the entire equity section will be wiped out.
That's why banks are getting into fights with the government, since all the politicians that are currently shareholders in these banks will lose all their shares and depositors will become the new shareholders.
You'll be literally burning your money if you buy these shares. Consider them gone in a month or 2.
joe2k17 wrote:Considering the situation it is better than nothing
DO NOT BUY THESE. Preferred shares fall under the equity section of a bank, they have a value of ZERO right now, since the banks incurred a lot of losses mainly from government not paying the EBs. Once the banks book these entries, the entire equity section will be wiped out.
That's why banks are getting into fights with the government, since all the politicians that are currently shareholders in these banks will lose all their shares and depositors will become the new shareholders.
You'll be literally burning your money if you buy these shares. Consider them gone in a month or 2.
I already bought long time ago , I want to know if they are wiped out or there still any chance to get them back one day
random-username wrote:joe2k17 wrote:Considering the situation it is better than nothing
DO NOT BUY THESE. Preferred shares fall under the equity section of a bank, they have a value of ZERO right now, since the banks incurred a lot of losses mainly from government not paying the EBs. Once the banks book these entries, the entire equity section will be wiped out.
That's why banks are getting into fights with the government, since all the politicians that are currently shareholders in these banks will lose all their shares and depositors will become the new shareholders.
You'll be literally burning your money if you buy these shares. Consider them gone in a month or 2.I already bought long time ago , I want to know if they are wiped out or there still any chance to get them back one day
It depends on whether the government or the banks get their way in regards to recognizing losses. Banks want to protect their equity by understating the losses, whereas the government fully recognizes them.
I can't predict the future, but my money is on the government recognizing the losses and bailing-in depositors, which in turn means wiping out current shareholders (common and preferred)
Sorry to be the bearer of bad news. If you can offload them to someone else, do it while you can.
Any bank equity security is worth zero. Sorry.
gone my friend , gone .
No dividends on preferred shares at the moment. Not considered gone as of yet. Whatever BDL circular goes around doesn't have to approved by the bank. And if the bank is forced to approve the circular, it's up to the bank to decide when to implement them.
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