Bradford & Bingley Bailout by the City

WTF?_2

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/07/bradford_bingley_rescued_again.html

I have learned tonight that a vital £400m fund raising by Bradford & Bingley, the battered buy-to-let bank, has been rescued for a second time.
Leading City institutions have rallied round to provide £179m of vital equity following a last-minute decision by the US private-equity house, Texas Pacific Group, to walk away from the deal.
TPG backed away from providing the new money after Moody's, the credit rating agency, announced it was downgrading the debt of Bradford & Bingley.


Another farce - what's the betting that the public ultimately end up taking this turkey onto the national balance sheet like NR?

havethis1

I'd rather my money went to buying robert mugabe a sushi salad than proping up some under achieving bank.

Its like dole money for unemployable banks.

Does anyone know if we are charging them interest and how much?

WTF?_2

havethis1 wrote: »

I'd rather my money went to buying robert mugabe a sushi salad than proping up some under achieving bank.

Its like dole money for unemployable banks.

Does anyone know if we are charging them interest and how much?

Currently the cash is being put up by a 'City Consortium' so we taxpayers are not yet directly supporting them - except through undisclosed 'liquity measures' which all banks have access to.

My guess is that as BTL collapses from the johnny-come-lately BTL amateurs and defaults rise, we have a strong candidate for Northern Rock MkII.

brit1234

B&B is doomed especially when all the repossessions highlight how bad the mortgage book is.

Its only a mater of time, all the house price fall predictions by these financial vested interest have all been widely wrong and understating the problem.

ultra10

An excellant example of how members on these boards have there finger on the pulse more than most.. i was PM'd to sell my very modest holding several months ago ... didn't and its cost me 500 quid !! ... dont believe the spin / hype from institutions like this this

brit1234

ultra10 wrote: »

An excellant example of how members on these boards have there finger on the pulse more than most.. i was PM'd to sell my very modest holding several months ago ... didn't and its cost me 500 quid !! ... dont believe the spin / hype from institutions like this this

I knew this was coming and in January I was contemplating cashing in my share ISA before the market fell. I didn't and the value has plummeted removing valuable money from my deposit.

However it allows me to buy shares cheap for a fair while and I can cash it in for mortgage overpayment's after I buy and they reach Januaries values again.

Its going to be difficult for people to time these troubles exactly.

Banderman

another dodgy bank goes ti ts up. well I certainly won't lose any sleep over that...

ixwood

brit1234 wrote: »

I knew this was coming and in January I was contemplating cashing in my share ISA before the market fell. I didn't and the value has plummeted removing valuable money from my deposit.

However it allows me to buy shares cheap for a fair while and I can cash it in for mortgage overpayment's after I buy and they reach Januaries values again.

Its going to be difficult for people to time these troubles exactly.

Are you sure they'll go back up? SELL, SELL, SELL!!

brit1234

ixwood wrote: »

Are you sure they'll go back up? SELL, SELL, SELL!!

They will in a few years, shares are a long term option. I'll just fill my ISA while they are cheap to make the most value. I hope.........

ontheslide

i hope you didn't follow that philosophy when northern rock shares plummeted...

'averaging' B&B shares is a very risky play imo..

good luck..

Mr_Mumble

Please read this thread brit1234:

http://forums.moneysavingexpert.com/showthread.html?t=553760