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grey shark

Fsa Monitoring B & B Closely ......bit Late Now ......

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FSA says closely monitoring bank B&B

The chairman of Financial Services Authority (FSA) said the regulator was closely monitoring Bradford & Bingley , the bank whose shares have slumped on concern about its business plan.

Bradford & Bingley (B&B) on Friday increased its rights issue to 400 million pounds after U.S. investor TPG Capital pulled out of buying a stake.

"We have taken a close interest in it," FSA Chairman Callum McCarthy told Reuters on the sidelines of a business conference in this southern French city.

Asked whether the FSA would continue to monitor Bradford & Bingley closely, McCarthy replied: "Of course."

The FSA is keen to avoid problems from the global credit crunch spreading across Britain's financial sector after the near collapse of British bank Northern Rock last year, which ended up being nationalised by the government.

TPG pulled out of buying a stake in B&B after ratings agency Moody's cut B&B's debt ratings, triggering a clause allowing TPG to scrap the agreement.

That prompted the FSA to step in to help ensure that an alternative financing plan was in place.

Last Trade: 44.50 p

Trade Time: 10:40AM

Change: -5.50 (11.00%) Prev Close: 50.00

Open: 50.00

Bid: 44.50

Ask: 44.75

1y Target Est: 79.06p

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Which southern French city was he attending a conference in? Why was the chairman of the FSA there and who was paying the bill?

Edited by blankster

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We have taken a close interest in it

Where were they when B&B were dishing 10 to let to any tosspot that turned up at their door?

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All of this news reminds me of the "Phoney War" period in the late summer of 1939. Everything was seemingly peaceful and yet, all around, all hell was breaking loose.

I suggested last year that our entire banking system was insolvent (not just deficit accounting) given the amount of debt in relation to everything else (World Bank data). So much has been built on Gordon's miracle of never-ending HPI-MEW-BTL and it is all proving to be not just sand but quicksand. Its going under and nothing is going to pull it back because everything else is built on the same foundation. NR was the first dominoe, the major builders will probably go next followed in quick succession by a few more banks.

The ONS boasted many months ago that UK Plc was "worth" just over 8 trillion pounds of which, IIRC, 40% was housing wealth or opinion as to wealth. When you boil it all down you come to the inevitable conclusion that the "miracle" was nothing more than the worst disease known to economics: INFLATION. Inflation is simply increasing value without commensurate production to pay for it. It was doomed to failure as all the previous booms were. But this time Brown drove it too far. Way beyond the great boom of the early 90's or anything that went before. This time he allowed house prices to get seriously out of control to the exent that we are talking in terms of trillions, not a few hundred billion. Debt is the new reality.

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Is that lock to keep the horse out or the emptiness in?

Looking at their chart, has anyone else noticed the symmetry across magnification levels? Positively fractal.

Perhaps we'll have to start calling them the Mandlebrot bank. You know, part real, part imaginary...

Edited by ParticleMan

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the 'system' has done well preventing a run on B&B. <_<

I am beginning to wonder why there hasn't been a run yet on BB. I'd already have my cash out if I had any (in there)

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I am beginning to wonder why there hasn't been a run yet on BB. I'd already have my cash out if I had any (in there)

mystery isnt it? Someone had a word in Peston's 'shell-like'? <_< It's worse than NR in terms of rapid implosion of share price etc...

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the 'system' has done well preventing a run on B&B. <_<

I reckon there's been a orderly 'silent run' , and there deposits are going down by the day , despite the pathetic ads now on TV telling Joe Public all is well and to save in their new savings tracker .

Not long now for B & B ..........TICK ....TOCK....TICK ....TOCK....TICK....TOCK....TICK ....TOCK............................

Edited by grey shark

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I just got my interest for this year at Sainsbury Bank and moved to a safer haven. I think Sainsbury have a 50/50 share with HBOS? (could'nt have picked any worse when they setup this deal)

I reckon there's been a orderly 'silent run' , and there deposits are going down by the day , despite the pathetic ads now on TV telling Joe Public all is well and to save in their new savings tracker .

Not long now for B & B ..........TICK ....TOCK....TICK ....TOCK....TICK....TOCK....TICK ....TOCK............................

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I am beginning to wonder why there hasn't been a run yet on BB. I'd already have my cash out if I had any (in there)

I think people will have silently drained their accounts in the last few months via the internet, nobody wants a fully fledged run during inclement weather, sod queing in the rain if its only a few grand lol

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I'm starting to take my money out - there weren't any queues on the Internet this morning. Shame my ISA is fixed until next April. Oh well :o .

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My father in law withdrew 50K plus last Semptember when Northern rock started looking shakey, I bet there are lots more like him.

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I am beginning to wonder why there hasn't been a run yet on BB. I'd already have my cash out if I had any (in there)

How "leveraged" are they? NR had a loan book of 120 billion for 20 billion of savings deposits, i.e. 5:1 leveraged.

Most banks are leveraged on mortgages these days. Even Lloyds has a loan book 147% of deposits courtesy of the money markets.

A collapse in the share price doesn't mean anything. It's not erroding their tier 1 - that was a done deal the day they de-mutualised. Its just a sign of loss of confidence in profitability, not solvency. They've secured their £400 million, have they not?

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Monday July 7, 12:36 PM

B&B faces fee despite failed deal

| | |

LONDON (ShareCast) - Bradford & Bingley (LSE: BB.L - news) will have to pay fees to Goldman Sachs (NYSE: GS (Advertisement)

- news) , which gave the bank advice on an investment from a US private equity group, even though the deal fell through.

The mortgage lender is to cough up a basic "success fee" plus an additional amount on the completion of a new funding package, according to the Sunday Telegraph.

TPG Capital had agreed to take a 23% stake in the lender worth £179m, but is thought to have changed its mind after learning of an expected ratings downgrade by Moody's.

Several of B&B's large institutional shareholders have been forced to step in and rescue its £400m fundraising after US private equity group Texas Pacific (TPG) walked away.

The company's share price plunged to a new low today and beneath the rights issue price of 55p. Experts fear the fall will deter shareholders from stumping up fresh cash.

Last month's stubborn rejection of overtures from Resolution forced insurance entrepreneur Clive Cowdery's bid vehicle to scrap plans to invest £400m in the business.

Resolution and the bank's four biggest investors, Standard Life (LSE: SL.L - news) , Legal & General Investment Management, M&G and Insight, had wanted to kill B&B's existing fundraising plans.

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  • 401 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%



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