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More Banks Told To Prove They Are Safe


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HOLA441

http://www.thisismoney.co.uk/news/article....e_id=2&ct=5

More banks told to prove they are safe

Sean Poulter & Sam Fleming, Daily Mail

17 September 2007, 7:45am

Mortgage lenders have been ordered to prove they are solvent amid fears of a Northern Rock domino effect.

The Financial Services Authority has launched an investigation to discover which other banks could be toppled, the Daily Mail has learned.

Those considered at risk by the City watchdog have been challenged to show they are secure.

One insider said: 'The banks have been told to open their books. They need to prove they have stress-tested their finances to ensure they are prepared for the risks inherent in these market conditions.'

It is understood that there is particular focus on Bradford & Bingley, the Alliance & Leicester and Paragon, all three of which have high loans-to-savings ratios: they lend out far more than they take in deposits.

...

Uh oh :(

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HOLA442
http://www.thisismoney.co.uk/news/article....e_id=2&ct=5

More banks told to prove they are safe

Sean Poulter & Sam Fleming, Daily Mail

17 September 2007, 7:45am

Uh oh :(

That would explain the sell off of those three sets of shares..... wonder when this info leaked to the trade floors as the sell off of those three was way ahead of this news.

50% discount on your mortage company :) Yes please

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HOLA444
That would explain the sell off of those three sets of shares..... wonder when this info leaked to the trade floors as the sell off of those three was way ahead of this news.

50% discount on your mortage company :) Yes please

...or two for the price of one....the FSA should not have to carry out a review ...they should be constantly on watch and be warning banks ahead of any digressions...this obviously has not been the case.... :o:o:o

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