Thursday, February 21, 2008

Toxic Mortgage Hangover for A&L

A&L to reel in mortgages after 30% drop in profits

Acting chief executive Chris Rhodes issued a stark warning to consumers that the cost of mortgages is going to rise – regardless of any official cuts to the Bank of England base rate – and that they needed to keep a clean credit record if they wanted to be granted a loan in 2008.

Posted by quiet guy @ 12:55 AM (958 views)
Please complete the required fields.



4 thoughts on “Toxic Mortgage Hangover for A&L

  • These paragraphs near the end are quite interesting:

    ‘Richard Banks, head of the commercial bank, admitted that he “regretted” having bought some of the exotic financial instruments – bought as long ago as 1999 – which have now caused the writedowns.

    Rhodes also made it clear that it the bank had not needed to use the Bank of England’s emergency funding windows. “It wasn’t an option to take funding from the Bank of England because of the stigma that is attached to it,” he said’

    At least Mr Banks has the honesty to admit a mistake – unlike Applegarth at Northern Rock. I was surprised by the ‘stigma’ comment: a pretty good indication of the fear factor that the banks have to deal with now.

    Reply
    Please complete the required fields.



  • So, do you think that Mr Banks et al have enough regret to return any bonuses they received as a result of their “business” activities…?

    Reply
    Please complete the required fields.



  • No need to worry Mr Rhodes, here comes Fairy Godfather Alistair Darling with his Cloak Of Invisibility to make sure the poor little banks are kept safe from the big bad public and their needless interest in knowing whether a bank is well run or not.

    Reply
    Please complete the required fields.



  • I will expect some highly competitive rates for savers coming from the A&L soon…..

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>