Jump to content
House Price Crash Forum
Realistbear

A & L Going Down Hard Again Today

Recommended Posts

ALL & LEICS (LSE:AL.L)

Last Trade: 539.50 p

Trade Time: 11:01AM

Change: 24.00 (4.26%)

Prev Close: 563.50

Open: 551.50

Bid: 539.00

Ask: 541.50

1y Target Est: 522.06p

With the crash and consequential reposessions spread accross the entire market surely A&L are in the same boat with their huge portfolio of effective sub-prime loans?

Share this post


Link to post
Share on other sites

They have just made it very hard for me to keep my money in their best IR account after closing my current savings acccount with them, reducing the IR on it and then, from what I read online, I cannot simply move my money into their higher IR account. I am just about to go online and, most likely, move my money to somewhere considered much safer such as the Nationwide.

Share this post


Link to post
Share on other sites

Rumours are floating about that they have a funding problem, however they told the world just a month ago that they were fully funded until the end of 2008!

Who knows, if NRK can go down, others could indeed follow.

Share this post


Link to post
Share on other sites

Problem is haven't ALL banks been involved with BTL funding? I can't think of one who isn't.

Yes, I agree it is wrong... but having sold my parents home recently I need to spread my money around so that I do not have more than the FSA limit in a bank. Paranoid - maybe, maybe not. Begining to think it would be best to just stick everything into the Nationwide.

Would have thought Bradford and Bingley would be more at risk than A&L but gossip on them being in trouble seems to have disappeared.

Share this post


Link to post
Share on other sites
its wrong to save cash with the companies that got involved in fueling BTL.

if this is your stance; very few banks don't have some involvement in BTL except some of the old style BS mutuals like nationwide to the best of my knowledge.

and when it comes to other BS's, you can rule out Britannia, Chelsea, Norwich & Peterborough and Derbyshire to name a few

Edited by prophet-profit

Share this post


Link to post
Share on other sites
Rumours are floating about that they have a funding problem, however they told the world just a month ago that they were fully funded until the end of 2008!

Who knows, if NRK can go down, others could indeed follow.

trouble is that was then and this is now. they made that statement based on (you hope) current prices at the time. that gives them a capital requirement they need to fund. but if prices move against them and they dont meet the capital requirements they may need more funding. i think each quarter the issue may crystalise as that is when they need to report to the fsa on whether they have met capital funding ratios.

what i dont understand is when they say 'till the end of 2008' as if they expect to make losses until the rest of the year and then profits or thats when they run out of capital? bit cryptic?

Share this post


Link to post
Share on other sites

I have no faith in A&L...I took out most of my money a couple of weeks ago and plan to close my current account asap, I just get a bad vibe about them, oh, and their customer service is appauling.

I hope they dont go the same way as the nothern crock as it would screw the economy for sure.

Share this post


Link to post
Share on other sites

There's a bloke called James Bartholomew who writes an occasional article for the Saturday Telegraph's money section entitled 'Diary of a Private Investor'.

He has, until recently, struck me as pretty switched on - if for no other reason than he seems to make money.

But lately he seems to have lost his marbles. In Saturday's edition he stated he had bought shares in Paragon! He is happy because the directors are buying! In the position Paragon is in, the directors have no choice - unless they want it to go down the ap

He really doesn't seem to have twigged yet what is actually going in the banking and property sectors. A few weeks ago he was buying housebuilders' shares.

Which just makes you wonder ... does anyone know anything much about finance?

Share this post


Link to post
Share on other sites
if this is your stance; very few banks don't have some involvement in BTL except some of the old style BS mutuals like nationwide to the best of my knowledge.

and when it comes to other BS's, you can rule out Britannia, Chelsea, Norwich & Peterborough and Derbyshire to name a few

its almost impossible to find a bank that isnt involved in some way, but i think AL really did push the BTL side a lot.

Share this post


Link to post
Share on other sites
I have no faith in A&L...I took out most of my money a couple of weeks ago and plan to close my current account asap, I just get a bad vibe about them, oh, and their customer service is appauling.

I hope they dont go the same way as the nothern crock as it would screw the economy for sure.

How do you feel about BRadford & Bingley then - good vibe, bad vibe? Heck, the financials seem to be in such a mess I may as well go ask Mystic Meg. Joking aside, both A&L and B&B offer great IRs at the moment but methinks they might be in alot of trouble either now or in the coming year. Both are big BTL lenders. It is all very well saving under 35K with them if you have a big STR fund but... if they go tits up you could spend a long time trying to get your money back. I am begining to think that the likes of Natonwide, LLoyds and HSBC, even after today's annoucement, are safer bets.

Share this post


Link to post
Share on other sites
its almost impossible to find a bank that isnt involved in some way, but i think AL really did push the BTL side a lot.

Icesave?

Share this post


Link to post
Share on other sites
How do you feel about BRadford & Bingley then - good vibe, bad vibe? Heck, the financials seem to be in such a mess I may as well go ask Mystic Meg. Joking aside, both A&L and B&B offer great IRs at the moment but methinks they might be in alot of trouble either now or in the coming year. Both are big BTL lenders. It is all very well saving under 35K with them if you have a big STR fund but... if they go tits up you could spend a long time trying to get your money back. I am begining to think that the likes of Natonwide, LLoyds and HSBC, even after today's annoucement, are safer bets.

Surely the safest bet is NR

Share this post


Link to post
Share on other sites
trouble is that was then and this is now. they made that statement based on (you hope) current prices at the time. that gives them a capital requirement they need to fund. but if prices move against them and they dont meet the capital requirements they may need more funding. i think each quarter the issue may crystalise as that is when they need to report to the fsa on whether they have met capital funding ratios.

what i dont understand is when they say 'till the end of 2008' as if they expect to make losses until the rest of the year and then profits or thats when they run out of capital? bit cryptic?

Yes, I would imagine it is a constantly moving target when they talk about being funded until X. Also, as you say, what happens when X comes and we are still in a credit crunch. I personally do not see this crunch being over by 31st December. Question is, should savers take advantage of the better IRs the likes of A&L and B&B are offering in the short-term and keep an eye on getting out... but then disaster could happen so quickly it would be impossible to get money out would it not... I mean, if a bank goes into crisis it can conveniently switch off its website these days.

Share this post


Link to post
Share on other sites
They have just made it very hard for me to keep my money in their best IR account after closing my current savings acccount with them, reducing the IR on it and then, from what I read online, I cannot simply move my money into their higher IR account. I am just about to go online and, most likely, move my money to somewhere considered much safer such as the Nationwide.

I have just received in the post a leaflet offering me 12% interest on savings.

My first thought was They Are In Trouble.

Share this post


Link to post
Share on other sites
I have just received in the post a leaflet offering me 12% interest on savings.

My first thought was They Are In Trouble.

They have been offering 12% for a long time now, sounds good but only applies to the first 2500 and then reverts back to a nats hair off 0%

Looked at this deal middling last year...07

Share this post


Link to post
Share on other sites
How do you feel about BRadford & Bingley then - good vibe, bad vibe? Heck, the financials seem to be in such a mess I may as well go ask Mystic Meg. Joking aside, both A&L and B&B offer great IRs at the moment but methinks they might be in alot of trouble either now or in the coming year. Both are big BTL lenders. It is all very well saving under 35K with them if you have a big STR fund but... if they go tits up you could spend a long time trying to get your money back. I am begining to think that the likes of Natonwide, LLoyds and HSBC, even after today's annoucement, are safer bets.

I'd go with Lloyds as a pretty save deposit option at the moment, even if their rates are a bit tight. A&L though - no chance.

Share this post


Link to post
Share on other sites

HBOS 555.00 -48.50 -8.04%

ALL & LEICS 521.00 -42.50 -7.54%

ROYAL BK SCOTL GR 366.50 -18.50 -4.81%

A&L and other banks did not do well again today. As the bad news begins to slowly leak out these stocks could take a real hammering in the weeks ahead. Don't forget, our HPC is lagging the US by at least 12 months and high stress has yet to hit our market.

Share this post


Link to post
Share on other sites
trouble is that was then and this is now. they made that statement based on (you hope) current prices at the time. that gives them a capital requirement they need to fund. but if prices move against them and they dont meet the capital requirements they may need more funding. i think each quarter the issue may crystalise as that is when they need to report to the fsa on whether they have met capital funding ratios.

what i dont understand is when they say 'till the end of 2008' as if they expect to make losses until the rest of the year and then profits or thats when they run out of capital? bit cryptic?

Their 'secure' funding was probably an agreement under which they could draw from time to time subject to various tests, ratios, conditions, ifs and buts. Unless they're funded by bank guarantees or letters of credit, which is 0% likely.

If they continue to deteriorate, the only funding they'll be getting is under the Banking (Special Provisions) Act 2008.

Share this post


Link to post
Share on other sites
Their 'secure' funding was probably an agreement under which they could draw from time to time subject to various tests, ratios, conditions, ifs and buts. Unless they're funded by bank guarantees or letters of credit, which is 0% likely.

If they continue to deteriorate, the only funding they'll be getting is under the Banking (Special Provisions) Act 2008.

Will they be bailed out like NR do you think? Or just let go, into administration?

Share this post


Link to post
Share on other sites
Will they be bailed out like NR do you think? Or just let go, into administration?

I reckon they'd bail them ... and then B&B ... and then HBOS...

'Systemic risk' trumps 'moral hazard' any day in the central banking game.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.