Realistbear Posted July 7, 2008 Share Posted July 7, 2008 (edited) http://uk.biz.yahoo.com/080707/214/i2vqc.html Monday July 7, 05:37 PM Update: B&B rights issue worries grow; EGM postponed By Lee Wild | | | LONDON (ShareCast) - Fears that Bradford & Bingley (LSE: BB.L - news) will struggle to get its £400m fundraising away heightened (Advertisement) after the mortgage lender's shares slumped to a record low further beneath the rights issue price. The bank (TBHS - news) was worth little more than £253m late morning, the least since its float at the end of 2000, following an 18% tumble on further selling after Friday's rating downgrade by Moody's. A "substantial deterioration in the bank's asset quality" forced the ratings agency to drop its long-term credit rating to Baa1 from A3. Looks like the end is near for the BTL champ? If I had savings with them I might find this a convenient moment to make a quick withdrawal. Edited July 7, 2008 by Realistbear Quote Link to comment Share on other sites More sharing options...
sambino Posted July 7, 2008 Share Posted July 7, 2008 Anyone been past a BB office today ? ANyone Queueing ? Quote Link to comment Share on other sites More sharing options...
CviewUK Posted July 7, 2008 Share Posted July 7, 2008 At the bank's Extraordinary General Meeting (EGM) today it was agreed by a show of hands to adjourn the meeting until 17 July. No other business was conducted at the EGM. Unprecedented? Quote Link to comment Share on other sites More sharing options...
Authoritarian Posted July 7, 2008 Share Posted July 7, 2008 (edited) The share price is way off the rights issue price around 42p and 53p respectively. I expect many share holders would be small time, carpet bagger style - and so will have little interest in purchasing an overvalued share, and probably furious at the bank's performance. This which leaves the larger investors, who equally will be reluctant to invest on those terms, unless our friends down at the FSA can persaude them otherwise of course. Edited July 7, 2008 by chefdave Quote Link to comment Share on other sites More sharing options...
copydude Posted July 7, 2008 Share Posted July 7, 2008 Anyone been past a BB office today ? Anyone Queueing ? Taxpayers are queuing to put money in. The City assumes the BoE/FSA will prop up the rights issue at 55p even if the shares are 10p. This should bring people out on the streets in protest, but probably won't. Quote Link to comment Share on other sites More sharing options...
kzb Posted July 7, 2008 Share Posted July 7, 2008 What happens if you have a repayment mortgage with B & B and it goes belly-up? Can they sell on your mortgage and charge you higher rates? Quote Link to comment Share on other sites More sharing options...
switters Posted July 7, 2008 Share Posted July 7, 2008 (edited) I feel another Northern Rock coming.... Edited July 7, 2008 by switters Quote Link to comment Share on other sites More sharing options...
time 2 raise interest rates Posted July 7, 2008 Share Posted July 7, 2008 My, what's up with you lot? There's far too much doom and gloom going down today. I'm off to landlords.r.us.com to cheer myself up somewhat. Quote Link to comment Share on other sites More sharing options...
ImA20SomethingGetMeOutOfHere Posted July 7, 2008 Share Posted July 7, 2008 If this rights issue goes tits up then it's Northern Rock all over again. That won't look good for Gordo and Badger-Face Darling, will it? Quote Link to comment Share on other sites More sharing options...
huggybear Posted July 7, 2008 Share Posted July 7, 2008 I've got just over 15k savings in a B&B ISA. Do you think I ought to pull it out or wait to see how the compensation scheme works? Quote Link to comment Share on other sites More sharing options...
Fully Detached Posted July 7, 2008 Share Posted July 7, 2008 Do you think I ought to pull it out or wait to see how the compensation scheme works? No. Get it out. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted July 7, 2008 Share Posted July 7, 2008 Where's Peston? Quote Link to comment Share on other sites More sharing options...
Mancghirl Posted July 7, 2008 Share Posted July 7, 2008 I've got just over 15k savings in a B&B ISA. Do you think I ought to pull it out or wait to see how the compensation scheme works? Do the decent thing and take it out. Go down to your branch at lunchtime.......Take a few mates with you, form a queue and start making fake mobile calls in a very loud voice 'Yah, I'm down at B & B, pulling the savings out, its going belly up? What's that? Can't hear you! Eh? Northern Rock? Yeah, I said, need to get the cash out quickly!!!'. That should do it. Quote Link to comment Share on other sites More sharing options...
time 2 raise interest rates Posted July 7, 2008 Share Posted July 7, 2008 Come on guys. Give 'em a break. They're sweet. They've got a portfolio bulging with btl mortgages. What could possibly go wrong? We're all well aware house prices only ever go up, and they've been more than prudent with their lending. You're just scaremongering. Quote Link to comment Share on other sites More sharing options...
wonderpup Posted July 7, 2008 Share Posted July 7, 2008 I've got just over 15k savings in a B&B ISA. Do you think I ought to pull it out or wait to see how the compensation scheme works? How does that saying go; 'a bird in the hand...' if it was me I would be long gone by now- the scheme is untested and unfunded- why take the chance? Quote Link to comment Share on other sites More sharing options...
brumroccoco Posted July 7, 2008 Share Posted July 7, 2008 "How does that saying go; 'a bird in the hand...' if it was me I would be long gone by now- the scheme is untested and unfunded- why take the chance?" Agree. Can't remember who said it, (Reagan?) but also reminds me of the quote 'They say exercise never killed anyone, but I figure, why take the chance of being the first?'! Quote Link to comment Share on other sites More sharing options...
endgame Posted July 7, 2008 Share Posted July 7, 2008 I've got just over 15k savings in a B&B ISA. Do you think I ought to pull it out or wait to see how the compensation scheme works? Pull it!!! I do not mean you should demolish your local B&B branch but rather get the savings out ASAP. It will be quite entertaining to watch another bank go tits up and the government squeal about how safe the banks are. Quote Link to comment Share on other sites More sharing options...
Glittery Hoo Haa Posted July 7, 2008 Share Posted July 7, 2008 A question from the financially naive. I bank with A&L. I have an overdraft which I use every month and my wages are paid into that current account. My savings are all held elsewhere. Should I continue or should I start looking to move? My nightmare would be to be unable to get out my salary at some point or to have my free overdraft taken over and become more expensive. Is this fear ungrounded? Quote Link to comment Share on other sites More sharing options...
huggybear Posted July 7, 2008 Share Posted July 7, 2008 Pull it!!!I do not mean you should demolish your local B&B branch but rather get the savings out ASAP. It will be quite entertaining to watch another bank go tits up and the government squeal about how safe the banks are. OK, you are all right. I want my money back and if I understand fractional banking that means they'll have about 150 k less to lend out??? So Nationwide is snowed under (thanks for the info). That means hunting on moneysupermarket. Quote Link to comment Share on other sites More sharing options...
sandman Posted July 7, 2008 Share Posted July 7, 2008 I've got just over 15k savings in a B&B ISA. Do you think I ought to pull it out or wait to see how the compensation scheme works? You will have no problem. Even if they go belly up, the compensation scheme has to be shown to work. The consequences for the scheme and the government would be catastrophic if it did,nt. Imagine, it,s first real test and they delayed or did not pay out, confidence in the system would cease overnight. Mind you, would,nt like to be further down the line with other banks, as there is only so much pain they can deal with. Quote Link to comment Share on other sites More sharing options...
copydude Posted July 7, 2008 Share Posted July 7, 2008 What happens if you have a repayment mortgage with B & B and it goes belly-up? Like Northern Rock, much will depend upon whether you are a Labour voter living in a Labour heartland. I fear the numbers are being crunched as we speak. Quote Link to comment Share on other sites More sharing options...
Fully Detached Posted July 7, 2008 Share Posted July 7, 2008 (edited) Imagine, it,s first real test Yeah, but why let your savings be the guinea pig? If B&B went down, it's quite likely that others could follow in quick succession. All of a sudden, a few hundred million £s worth of B&B depositors could become a few billion £s worth of depositors from other banks. The FSA insurance scheme just doesn't look that good when you research it closely. Plus, what have you got to lose - the interest on the ISA? What if you end up waiting 12 months to get your cash back from the scheme - how much have you lost in interest (and sleepless nights) then? If it was me, I'd pull it. Edit - clarity. Edited July 7, 2008 by Crash Gordon Quote Link to comment Share on other sites More sharing options...
copydude Posted July 7, 2008 Share Posted July 7, 2008 I've got just over 15k savings in a B&B ISA. Do you think I ought to pull it out or wait to see how the compensation scheme works? Too funny. This is like testing the antidote to a bite from the Black Widow. You have be injected with the poison first. They tried the clinical tests in two parts, but no volunteers ever volunteered for the second dose. A canoe to Panama has fewer risks than B&B at this time. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted July 7, 2008 Share Posted July 7, 2008 It's just like waiting for end of a relative you know it's coming but it keeps dragging on. Quote Link to comment Share on other sites More sharing options...
Guest happy? Posted July 7, 2008 Share Posted July 7, 2008 It's just like waiting for end of a relative you know it's coming but it keeps dragging on. It's more a like a relative who's left you everything in their will but you know the estate's being eaten-up by nursing fees. Someone fetch the special pillow for Mr Bradford and Mr Bingley. Quote Link to comment Share on other sites More sharing options...
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