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Bradford And Bingley Ceo


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Parliamentary Select Committee:

CEO of B&B explains that if only the press had held off and not focussed on Bradford and Bingley as the next in line to implode, then somehow it wouldn't have. He then goes on to explain that an initial withdrawal of deposits amounting to a few million escalated within hours of press speculation, culminating in over £200 million of withdrawn deposits and then collapse. He blames the media!! Not a single reference or question posed that perhaps in the first place his woefully poor ratio of deposits/cash flow to lending might be the real reason for the collapse.

Please discuss.

VP

Edited by VacantPossession
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Yes, it was nothing to do with the management of B&B, was it?

2003:

Christopher Rodrigues, the chief executive of the mortgage lender, Bradford & Bingley, hit back yesterday at criticisms of the buy-to-let mortgage market, as he revealed its lending in the buy to let sector had more than trebled in the first half of the year.

His defence of the buy-to-let market came a day after Matt Barrett, the chief executive of Barclays, warned that rivals were taking on "suicidal" risks with their lending policies. He said some were rushing in to the buy-to-let market, lending very high amounts to the value of the property on "dizzying" income multiples.

"The buy-to-let market is not as risky as it is portrayed, that is fact," Mr Rodrigues said, adding that buy-to-let was lower risk than most mainstream lending. "You can see from every monthly set of figures from the Council of Mortgage Lenders that arrears experience is lower in buy-to-let than in owner occupied homes."

2007

A bursting of the buy-to-let bubble would see Bradford & Bingley shares deflate faster than a balloon. Some 58% of its £31.1bn portfolio is tied up with professional landlords, delivering 26pc growth in new mortgages last year. The company is spreading its risk away from buy-to-let into equally "specialist" self certification mortgages to the self-employed, which registered growth of 74pc last year, but the exposure is still a worry. Few dispute that if the housing market does slow, buy-to-let is where it will be felt first.

That extra risk, though, has brought greater profits. Chief executive Steven Crawshaw makes a convincing case for a sustainable future, at least until rates rise to 7.25pc, he claims. There is no sign of house prices slipping and high employment is keeping rental levels ticking up nicely.

And 2007 again:

Of the new accounting rules lowering banks' capital requirements, Mr Crawshaw said: "We will grow into that money. This allows us to lend significantly more without having to raise extra capital. There is a market we can shoot at with that additional firepower. Our investors would like us to use it."

Mr Crawshaw insisted the buy-to-let mortgage market, which accounts for 58pc of all the bank's lending, will continue to outpace growth in the mainstream market.

Shrugging off concerns raised by declining rental yields, he argued that interest rates would need to rise to 7.25pc before the market would begin to face difficulties. "Buy-to-let confidence has never been higher," he said. "No one is running the argument that property prices will decline and as long as landlords are covering their costs, they're happy. They are in it for the long term."

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Oh, and don't forget this:

14th April 2008:

Contrary to press speculation today, Bradford & Bingley announces that it is not intending to issue equity capital by way of a rights issue or otherwise. Bradford & Bingley has a strong capital base, above its regulatory requirements, and as a result of the Board’s conservative approach, has funded its business activities through to 2009

14th May 2008

Bradford & Bingley plc announces a rights issue to raise approximately £300 million, net of expenses, in a 16 for 25 rights issue at an issue price of 82 pence per Bradford & Bingley share. This represents a 36% discount to the theoretical ex-rights price and a 48% discount to the closing price of Bradford & Bingley shares of 158.75 pence per share
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Thanks for the research, professor, which confirms what I assumed, that the select committee does not appear to have the same info that you so easily provided, because not a single reference was made to the above salient points. Proof yet again that parliament is woefully behind (probably deliberately) on basic information. It further confirms my long held suspicions that the man who is running the Treasury Select Committee, John McFall, has consistently failed to ask the right questions of every witness before him since the beginning of the meltdown.

Indeed I am now convinced that McFall is a planted stooge on behalf of Darling and Brown. His remit is to ask APPARENTLY searching questions while at the same time actually letting the B&B CEO and other bigwigs in failing banks to get away with murder. What other explanation could there be? His questions were pathetic. And the answers they illicited were allowed through with barely a whimper. Something fishy going on here. His numerous Newsnight appearances confirm the same. He is posing as a huffing, puffing objector to bad behaviour but at the same time is allowing lies and deceit to flow smoothly and un-noticed through the "committee" like a giant laxative. (Please excuse imagery).

VP

Edited by VacantPossession
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The problem is noone is asking the basic questions you would expect - the bankers are getting away with it.

The problem is that the members of the committes are having to leave the committee and do their normal work, which, i am told, takes up all their workinghours and more, so sitting researching BB for the last two years for press statements is the last thing they are going to do.

We need specialist inquisitors for this job.

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I heard him speaking to R4 last night. It made me think. Surely if there was no problem with B&B's business model there wouldn't have been a media coverage and subsequent run on the bank....

Bring on GM. Now that the writing's on the wall for my ex-employer, how many people will be put off buying a GM car because of potential failure of the corporation? What about warranty etc?

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The problem is that the members of the committes are having to leave the committee and do their normal work, which, i am told, takes up all their workinghours and more, so sitting researching BB for the last two years for press statements is the last thing they are going to do.

We need specialist inquisitors for this job.

You won't get special inquisitors in the UK. They would have to be brought in from the "City" of course, old school mates, the right schools etc and went to Oxbridge, members of the same bridge club or golf course and they were all in on the ponzi scam. Might fair better to bring them in from the US as they seem a lot tougher in their hearings. All I see on the finance committee is a lot of puffed up self importance.

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Indeed I am now convinced that McFall is a planted stooge on behalf of Darling and Brown. His remit is to ask APPARENTLY searching questions while at the same time actually letting the B&B CEO and other bigwigs in failing banks to get away with murder. What other explanation could there be? His questions were pathetic. And the answers they illicited were allowed through with barely a whimper. Something fishy going on here. His numerous Newsnight appearances confirm the same. He is posing as a huffing, puffing objector to bad behaviour but at the same time is allowing lies and deceit to flow smoothly and un-noticed through the "committee" like a giant laxative. (Please excuse imagery).

VP

Spot on. My thoughts exactly.

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some B&B highlights from yesterday :

CEO: "fraudulent buy to let mortgages on the books could present a problem in repayment of government loans"

CEO: "buy to let mortgages on books = 24bn quid. 20% of total uk buy to let."

CEO: "arrears: currently 3%"

CEO: "GMAC mortgages : 6.5 billion pounds of GMAC mortgages purchased by B&B. Agreement to buy more until 2011. Total exposure 7 billion. Arrears rates on these mortgages are 'higher' than 3% "

committee member to banker: "self certified mortgages?. you mean LIAR LOANS?"

CEO: "Self cert mortgages were not properly regulated. Fraud commonplace."

CEO: "buy to letters with big portfolio beginning to be a big problem. Landlords are keeping rent, not paying the bank and then going bankrupt"

CEO: "stress testing for house price falls above 25% taking place. cannot issue guarantee we can cope with any falls greater than 25%"

Edited by BurningRingOfFire
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Thanks for the research, professor, which confirms what I assumed, that the select committee does not appear to have the same info that you so easily provided, because not a single reference was made to the above salient points. Proof yet again that parliament is woefully behind (probably deliberately) on basic information. It further confirms my long held suspicions that the man who is running the Treasury Select Committee, John McFall, has consistently failed to ask the right questions of every witness before him since the beginning of the meltdown.

Indeed I am now convinced that McFall is a planted stooge on behalf of Darling and Brown. His remit is to ask APPARENTLY searching questions while at the same time actually letting the B&B CEO and other bigwigs in failing banks to get away with murder. What other explanation could there be? His questions were pathetic. And the answers they illicited were allowed through with barely a whimper. Something fishy going on here. His numerous Newsnight appearances confirm the same. He is posing as a huffing, puffing objector to bad behaviour but at the same time is allowing lies and deceit to flow smoothly and un-noticed through the "committee" like a giant laxative. (Please excuse imagery).

VP

Very well put VP --- This Govt itself is a total front - s scam. Jeez we are heading for disastroud times.....

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John McFall regularly appears all over the media, but he is particularly parachuted into the Newsnight studio with a very schizophrenic function. On the one hand he constantly defends government policy and on the other he pretends to be morally outraged on the increasingly anodyne sessions he presides over at the Treasury Select Committee. This is to my mind much more serious than it first appears. This is almost a carbon copy of the governments habit of promising "enquiries" then placing government stooges in the chairman's position.

If you can, watch JohnMcFall (YouTube, iplayer and other internet sources) being interviewed on various programmes. He simultaneously appears as prosecutor and defender. His personal MP's website is full of glowing references to his relentless quest for truth about banks and other financial institutions, yet his own performance on the Treasury Committee and his sycophantic support of Brown's policy in appeasing the banks just doesn't square. His untenable position is a vivid example of the doublethink and doublespeak going on in all areas of government at the moment.

VP

Edited by VacantPossession
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........../

If you can, watch JohnMcFall (YouTube, iplayer and other internet sources) being interviewed on various programmes. He simultaneously appears as prosecutor and defender. His personal MP's website is full of glowing references to his relentless quest for truth about banks and other financial institutions, yet his own performance on the Treasury Committee and his sycophantic support of Brown's policy in appeasing the banks just doesn't square. His untenable position is a vivid example of the doublethink and doublespeak going on in all areas of government at the moment.

VP

Absolutely BANG ON the nail VP. It's incredible how Nulabour just endlessly get away with total obfuscation and bullsh1t all the time. Depressing.

Edited by eric pebble
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some B&B highlights from yesterday :

CEO: "fraudulent buy to let mortgages on the books could present a problem in repayment of government loans"

CEO: "buy to let mortgages on books = 24bn quid. 20% of total uk buy to let."

CEO: "arrears: currently 3%"

CEO: "GMAC mortgages : 6.5 billion pounds of GMAC mortgages purchased by B&B. Agreement to buy more until 2011. Total exposure 7 billion. Arrears rates on these mortgages are 'higher' than 3% "

committee member to banker: "self certified mortgages?. you mean LIAR LOANS?"

CEO: "Self cert mortgages were not properly regulated. Fraud commonplace."

CEO: "buy to letters with big portfolio beginning to be a big problem. Landlords are keeping rent, not paying the bank and then going bankrupt"

CEO: "stress testing for house price falls above 25% taking place. cannot issue guarantee we can cope with any falls greater than 25%"

So he's saying that self cert mortgages were not properly regulated - er is he saying he only now realises this or did he know this before when they were lending to anyone with a pulse? If it's the latter why did he take this business - he could have refused it? If it's the former how the hell did he get to be the CEO of a bank without knowing his marketplace?

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So he's saying that self cert mortgages were not properly regulated - er is he saying he only now realises this or did he know this before when they were lending to anyone with a pulse? If it's the latter why did he take this business - he could have refused it? If it's the former how the hell did he get to be the CEO of a bank without knowing his marketplace?

The present CEO was appointed by the Government after B&B were taken over, so was not responsible for LIAR LOANS

issued prior to takeover. Still begs the question why no action has been taken against the people who were responsible for them before the collapse though.

Edited by BurningRingOfFire
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Are they claiming to be Shrodingers Bank?

:lol: class

[sNIP]

His untenable position is a vivid example of the doublethink and doublespeak going on in all areas of government at the moment.

VP

Very well put VP, they are in up to their eyeballs and are trying to pull off the biggest political sleight of hand in our life times and get away blame free from this fiasco. I am very worried that they may actually do it. :unsure::(

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