Don Reed Royal Bank Scotland Group PLC (Pref.) RBS.PR.F-N BUY Jul 25, 2005

It's OK, but in European banks, prefers Fortis (?) and Banco Bilboa Vizcaya (BBV-N) which are more globally oriented.

Facing problem with sub-prime mortgages. Very well diversified bank. Not feeling pain from fundamental view. Mortgages have done well. Grown yearly in earnings 10-15% in last 7 years, will continue over next 5. Given mass stock sell-off the opportunity is strong.

(Top pick, February 28, 2007. Down 48%) Made an acquisition they didn’t need to which stretched the balance sheet.