Oh dear - Bradford & Bingley nationalisation looks increasingly likely

Husband_of_a_spendaholic

Generali wrote: »

The only possible value is the value ascribed to the cashflows from the difference between the rate of interest being paid to the savers and the rate of interest being paid by the buying institution in the money markets.

All banks fund from sources other than their depositors apart perhaps from some tiny mutuals.

Yes, but's that not the point. Most banks and building societies fund to some extent from their retail deposits, backed up by loans from the money market and various other vehicles such as securitisations and covered bonds.

Right now, the availability of these other funding lines just isn't there and therefore the the acquisition of £20bn of retail funding balances, at the right price may well be attractive to another bank out there. The long term value may not be much, but in the current climate they may be more valuable than you think

fatpig_2

wymondham wrote: »

Will this mean real problems with any buy-to-let mortgage holders who wish to remortgage?

I sincerely hope so. If alot of the chancers can't remortgage and are so forced to sell this will obviously accelerate the house price crash.

Realy

Looks like Santander are going to get it now.

http://news.bbc.co.uk/1/hi/business/7641055.stm

amcluesent

What are the chances all of B&B's records are passed over to the taxman? HMRC will love to get all the info on BTL landlords and cross-match to last years tax returns!

crisp02

The Government now own my house, i am with Mortgage express a arm of Bradford & Bingley they have been very sheepish lately and i can see why, twice they have debited more money out of my account than they should have, but i had my bank to reverse the debit.Where do i stand with this takeover by the Government, i feel safer now than when B&b had my account.What do you think

Generali

amcluesent wrote: »

What are the chances all of B&B's records are passed over to the taxman? HMRC will love to get all the info on BTL landlords and cross-match to last years tax returns!

I'm pretty sure that in most cases it's illegal for Government departments to share data like that.

amcluesent

>The Government now own my house<

Actually the people now own your house. Ah, collective ownership...how very socialist. I just hope it's not reallocated to the more deserving - 'From each according to their ability, to each according to their needs!"

crisp02

i don't think there will be much change, in fact B&B were not passing on the interest rate changes, not sure now who will be handling the day to day affairs of Mortgage Express.

JonnyBravo

At least we're not paying for this one... or so it would seem.

The Financial Services Compensation Scheme has had a claim made against it, according to Peston on Radio 5 this morning anyhow.

He outlined the fact that if the mortgages don't make enough money it will be paid for by the compensation scheme not the taxpayer. He said that the money will only be collected in the future though... when the true picture is known and when the banks can afford it. Until then the Govt is going to lend the money.
The only charge until then is the interest on that money, about £500m for each of the next two years.



Of course, whether we all pay for it by more expensive credit is another matter. Perhaps expensive credit is what this country needs though.


Just found a link with him explaining it better than me

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

napoleon

JonnyBravo wrote: »

At least we're not paying for this one... or so it would seem.

Yep, it's all worked out fine and dandy. I can't really see what all the fuss was about in the first place. Much ado about nothing