Bradford & Bingley Shares

ad44downey wrote: »

Now there's a strong indication that there'll be a rights issue. So B&B could be sending shareholders a begging notice pleading that they need more of your cash. Talk about throwing good money after bad.

Yeah, and when that rights issue sends the share price down even lower, and is undersubscribed, and the share price keeps falling, and their asset base value keeps falling, hsbc or someone will come along and offer 40p per share, which the B&B board will 'reluctantly' accept.

No northern rock. Just another bunch of shareholders getting shafted, and another lot of high LTV mortage holders over a barrel.

ad44downey wrote: »

Now there's a strong indication that there'll be a rights issue. So B&B could be sending shareholders a begging notice pleading that they need more of your cash. Talk about throwing good money after bad.

That was a media rumour (another one put about by shorters?) and BB. responded today by issuing an official statement to the Stock Exchange denying it:-

"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 2008 and into 2009. In the current market environment, the Board will naturally continue to monitor closely the balance sheet strength of the business and its funding plans.

As previously announced, Bradford & Bingley will release its Interim Management Statement on 22 April."

I hold their shares (more than the free 250) and am retaining them for the income.

Biggles wrote: »

"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 2008 and into 2009. In the current market environment, the Board will naturally continue to monitor closely the balance sheet strength of the business and its funding plans.

As previously announced, Bradford & Bingley will release its Interim Management Statement on 22 April."

I hold their shares (more than the free 250) and am retaining them for the income.

Well you hardley expect them to say:

"To be honest guv, we are at our wit's end. The piggy bank is empty, and we've been under all the sofa's. The global banking community have us down as NR - part 2. We can't get liquidity for love nor money. The icelandic banks are having us for toast. The share price is going down faster than eddie the eagle. The BoE emergency funds are not enough, And we bein hammered by CDS, the ratings agencies, and the shorters.
Basically a rights issue will be a last resort. We're already is secret talks with (large big bank), and it's only a matter of time."

Which would be closer to the truth.

I just hope they last long enough for me to take my money out on November 4th. I assume that if you have less than 30K with them your savings will be safe?

Thanks James - only put money in 2 weeks ago and now the news today is more than a bit worrying. Odd, they still have not taken the money from my account and I was in half a mind to cancel the cheque for the bond today.