Monday, May 19, 2008
A&L and B&B fall on short selling
Citywire: Bradford & Bingley plummets on bad debt worries
Shares in embattled lender Bradford & Bingley fell more than 9% on Monday morning on worries over bad debts. Its FTSE 100 rival Alliance & Leicester was also trading down over 3% after Goldman Sachs cut its price target from 438p to 350p. A&L is being watched closely for a decision on a rights issue to shore up its own capital base after announcing worse than expected write downs of £192 million last week.
Posted by jack c @ 11:01 AM (423 views) Add Comment
7 Comments
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1. Rm96696 said...
Excellent candidate for the next northern rock.
2. Distant_adz said...
And so are we to expect a 'recovery plan' from Brown at taxpayers expense?
3. mark wadsworth said...
Er ... "Company makes rampantly stupid business decisions and shares fall in value" ... since when is that a headline?
4. Still Renting said...
The article doesn't mention short selling.
5. new user 2007 said...
Is this not a major player in the BTL market? I am somewhat confused on how their bad loans are rising, given how strong and stable BTL is. As in the case of Northern Rock, another BTL specialist.
I realise that part of the story is indeed the fact that suddenly the cheap money that funded their unsustainable business models has dried up BUT for the market to be concerned about the quality of their balance sheets is telling, given how important BTL is for it:)
I suspect that it is not just their "retail" borrowers who are suffering and the BTL part is all fine. Just as in the case of NR, they have probably been fudging arrears data etc, and they have been caught out.
6. Stephen said...
. . . Another one bites the dust, another one bites the dust
7. Stephen said...
Oh, does this please me much,
http://www.youtube.com/watch?v=hMenB9Ywh2Q