We asked two respected investors whether RBS and Lloyds shares are now good value for money.

Neil Woodford, fund manager at Perpetual:

Advice: sell Lloyds, sell RBS

Woodford has avoided bank shares for the last two years, a stance that saw him avoid the worst of the credit crunch but miss the upside this year as bank shares rallied.

He thinks there is still a chance shareholders in both RBS and Lloyds could be completely wiped out by a full scale nationalisation of the banks.

“It may well be that ultimately politicians decide the political cost of not nationalising the banks is too high,” he said.

“At what stage does the economy say, well hang on a minute, we've put all this money in and yet we're still not getting any lending. Where's the upside for the taxpayer?”

Arturo De Frias Marques, Evolution Securities
Advice: buy Lloyds, sell RBS

“We recommend clients buy Lloyds up to 96p a share.

I am looking beyond the rescue packages and focusing on what they will have left afterwards.

Where is the long-term earnings growth opportunity?

Lloyds will end up being the biggest retail bank in the UK, the largest mortgage bank in Europe by a mile. That makes it look attractive to us.

For RBS, however, it looks very different. They will not have a particularly strong retail position. Investment banking will be downsized substantially and while it will still have Citizens in the US and corporate lending operations all over the place, do you want that?

Maybe for the very long term RBS is a buy, but for the medium term you cannot make a case.