B & B shares - would you buy now?

cheekykid

22.5p as of today

Stavros_3

21.5p at close of business, is no-one tempted for a few thou ?

Andrew64

Stavros wrote: »

21.5p at close of business, is no-one tempted for a few thou ?

Any gamblers here!?

Stavros_3

Christ that is a low price

Andrew64

Stavros wrote: »

Christ that is a low price

At this rate it'll soon be a penny share!

edwinac_2

fatpig wrote: »

Alistair Darling, chancellor of the exchequer (finance minister), said last year after the run on Northern Rock that the government would guarantee every penny of savers’ money, not just at the Newcastle lender but at every other bank.

Wasn't that Government guarantee just temporary and now expired?

Also from the FT (Sept 15)...

Deposit insurance system may face WaMu test

By Krishna Guha in Washington and Joanna Chung in New,York

Published: September 15 2008 03:00 | Last updated: September 15 2008 03:00

Attention has focused on the danger presented by the failure of Lehman Brothers. But the failure of a commercial bank such as Washington Mutual can have systemic consequences if it threatens a run on other weak banks.

Washington Mutual - the sixth largest bank in the US - has lost more than a third of its market value recently as investors fear it lacks liquidity and capital to survive the credit crisis.

The failure of a bank its size would test the strength of the US deposit insurance system and its ability to maintain the confidence of the nation's savers.

The US Federal Insurance Deposit Corporation covers the first $100,000 in deposits held by each individual in a given bank. As of June 30, 64 per cent of the total $7,000bn deposits were insured in the US - a much larger proportion than in the UK at the time when Northern Rock. the commercial bank, failed.

Nonetheless, this still leaves $2,500bn in uninsured deposits. If a high-profile failure causes these uninsured deposits to shift abruptly in a flight to safety, it could be highly destabilising for the banking system.

The US could be forced to adopt a de facto blanket guarantee on all bank deposits, as the UK did on a temporary basis during the Northern Rock crisis.

There are other precedents. At the start of the Asian financial crisis in the 1990s, the International Monetary Fund opposed extending deposit guarantees. But the IMF soon changed tack and told crisis-hit countries to issue full guarantees.

A formal blanket guarantee in the US would require legislation. But under a 1991 law, the FDIC could seek a systemic risk exemption to cover all the deposits of a failing institution, subject to the approval of its board, a supermajority of the Federal Reserve governors, and the Treasury secretary in consultation with the president.

The FDIC has no desire to invoke this authority - which has never been used; would be unpopular with taxpayers; and would carry a cost in terms of moral hazard.

The FDIC is respected for its operational effectiveness. But its $45bn deposit insurance fund is underfunded according to its own guidelines, at 1.01 per cent of insured deposits.

The FDIC is preparing a capital replenishment plan that would involve raising premiums paid by banks.

But analysts fear it may have to draw on its $70bn Treasury credit lines. Alan Avery, a partner at Arnold and Porter, said a single failure - if big enough - "would cause the FDIC to immediately draw on the Treasury credit".

Washington Mutual had $143bn in insured deposits on June 30 - about three times the size of the deposit insurance fund, but less than half of its $307bn assets.

SeanW

edwinac wrote: »

Wasn't that Government guarantee just temporary and now expired?

http://companyinfo.northernrock.co.uk/corporateRelations/yourQuestionsAnswered.asp

What are the guarantee arrangements and how long will they stay in place?

On Tuesday 9 October 2007, Northern Rock agreed guarantee arrangements with the Bank of England and HM Treasury. These arrangements remain in place at the current time.
The guarantee arrangements protect all savers, regardless of the amount deposited and apply to all existing accounts, all re-opened accounts and all new accounts.
They also cover all new deposits, all further interest payments and movement of funds between accounts and all term deposits, including Fixed Rate Bonds, for the duration of their term.
The guarantee arrangements will remain in place during the period of temporary public ownership and, as previously confirmed by the Government, such arrangements would not be withdrawn without at least three months notice in any event.

sabretoothtigger

the most important thing for bb actually came up as part of the hbos lloyds take over. The boe AAA mortgage exchange for cash will continue, if it didnt bb would probably become insolvent as nobody but boe would give it cash.

Funny thing is hbos actually reported higher profits then lloyds both last year and even recently this year but look whos the daddy now and its because lloyds has the cash and cash is king


http://en.wikipedia.org/wiki/Self-fulfilling_prophecy

fatpig_2

Andrew64 wrote: »

At this rate it'll soon be a penny share!

Aren't they already? Anything less than £1 is a penny share?

edwinac_2

From the FT... "The US could be forced to adopt a de facto blanket guarantee on all bank deposits, as the UK did on a temporary basis during the Northern Rock crisis."

SeanW wrote: »

http://companyinfo.northernrock.co.uk/corporateRelations/yourQuestionsAnswered.asp

What are the guarantee arrangements and how long will they stay in place?

On Tuesday 9 October 2007, Northern Rock agreed guarantee arrangements with the Bank of England and HM Treasury. These arrangements remain in place at the current time.

The guarantee arrangements protect all savers, regardless of the amount deposited and apply to all existing accounts, all re-opened accounts and all new accounts.
They also cover all new deposits, all further interest payments and movement of funds between accounts and all term deposits, including Fixed Rate Bonds, for the duration of their term.

The guarantee arrangements will remain in place during the period of temporary public ownership and, as previously confirmed by the Government, such arrangements would not be withdrawn without at least three months notice in any event.

Sure.. but the original poster (fatpig) is claiming that the Government's temporary 100% guarantee still applies, and that it applies not only to the Northern Rock, but also to ALL deposits in EVERY UK bank including the B&B.

fatpig wrote: »

Alistair Darling, chancellor of the exchequer (finance minister), said last year after the run on Northern Rock that the government would guarantee every penny of savers’ money, not just at the Newcastle lender but at every other bank.

If that were true, the FSCS might as well be abolished!

My understanding is that Darling's temporary guarantee has now expired for depositors of every other bank.

And for B&B depositors, that should be particularly disturbing..