Bradford and Bingley - Treasury to intervene

sabretoothtigger

I thought this might bring some grim cheer to bb shareholders.
TPG loses 2bn on WaMU
http://www.breakingviews.com/2008/09/26/WaMu-TPG.aspx?sg=breakingstories


Wasnt standard life a 5% holder of bb

Surely for Santander it can't make economic sense to have branches of B&B, Abbey and indeed A&L all on the same high street in many towns?

Santander just got use of 22bn of depositors cash for a measly 600m (2.7%) while the rest of the market is gasping for cash like fish out of water.
I think they can take their time to consider what options to take, their main concern would be whatever exposure or responsibility they have to the nationalised mortgage debt
Might even make sense to start a regular investment in santander shares but ive no idea on their general background tbh

bristolleedsfan

sabretoothtigger wrote: »

Wasnt standard life a 5% holder of bb

9.61%.


http://www.citywire.co.uk/personal/-/news/markets-companies-and-funds/content.aspx?ID=315686&Page=1

sabretoothtigger

doh, sounds worse but sl is a big company and by the time sl invested that much bb had become pretty tiny on the market.
Could be worse basically, sl was attempting to price average their investment I guess, turned out for the worst

Standard Life Investments (SLI) is to take the brunt of the losses if as expected shareholders go empty handed, after holding a 9.61% stake in the mortgage lender in August according to Comoany REFS.
Shares in B&B were suspended on Monday, but at Friday’s price of 20p SLI was looking at a paper loss of £48.56 million on its holdings, bought at a rights-issue price of 55p. The insurance giant is now facing a total loss of £76.31 million on its 138.75 million shares
Others facing a major write down on the capital collapse of B&B include Barclays, which holds 101.46 million shares valued at £55.80 million at time of purchase.
HBOS holds 97.85 million shares originally valued at £53.81 million while AXA holds 87.01 million shares bought at £47.85 million.

RBS is the big loser on the day, switching from buy out rumours to the wake up call of a fortis bail out with which it shares common interests .
SL remains around its float price from 2 years ago with a yield of 5%

Tallyho_2

I have just come off the phone from my local B&B after my savings were transferred to Abbey Santander without my authorisation obviously . I already have savings at the Abbey so my B&B accounts £35000 FSA cover has now gone to the wall as it is already covered by the £35000 FSA Santander cover .

I am now exposed to a £35000 loss if Santander go !!!!

I'm absolutely furious if this is the predicament I am in if it is true .

Anyone know if this FSA umbrella now evaporates from under me on what were 2 seperate accounts cover into 1 ?

Tallyho_2

From the B&B site :

Are my savings guaranteed?
Bradford & Bingley deposits will covered by Abbey's banking licence and are therefore still covered by Financial Services Compensation Scheme (FSCS).This scheme provides compensation, up to £35,000, if a firm is unable to pay claims. The FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA). The service is free to consumers.

I already have savings with Abbey, which means my total will be more than £35,000 - what does this mean for my FSCS protection?
If you are an Abbey (or Cahoot) customer you will only be covered for the first £35,000.




This is absolutely outrageous , if Santander go under I'm shafted & probably a lot of other people .

Stavros_3

Santandar have got an absolute bargain for buying the deposits of B & B worth 22.2billion not the debts, i.e mortgages. In view of the highly serious position of the banking sector it would be political suicide for a prime minister and chancellor to let Santandar take on B & B if there were any concerns with their business models and liquidity. If you are that seriously worried then switch some of it to another banking group, there's still some good rates out there

EalingSaver

Tallyho wrote: »

From the B&B site :

Are my savings guaranteed?
Bradford & Bingley deposits will covered by Abbey's banking licence and are therefore still covered by Financial Services Compensation Scheme (FSCS).

Apologies if this has been covered by other posts. and I sure as h**l don't want to start another "Is the FSCS worth the paper its written on.." thread.

Two observations/questions.

a) Is it confirmed that the transfer to Abbey's license takes immediate effect, (as opposed to happening 'in due course')?
b) Is A&L's license/registration still separate from Abbey's? Any news on them being amalgamated?

I'm guessing that the transfer to Abbey's license is immediate, and arises from the fact that technically the FSA declared B&B as 'failed', (compared with say A&L being an 'orderly' purchase of a 'going concern').

And please, appreciate postings on known facts, not dyed in the wool "what are you worried about, FSCS not worth anything, by the time it is we're all dead" stuff.

dunstonh

Anyone know if this FSA umbrella now evaporates from under me on what were 2 seperate accounts cover into 1 ?

it is not FSA protection. It is the FSCS and is funded by financial services firms. Not just banks but all FSA authorised firms.

I'm absolutely furious if this is the predicament I am in if it is true .

At least you don't have to pay for it and the odds of Santander going under are remote. I unfortunately will have to pay more in the coming years. So, forgive me for feeling you have nothing to be furious about but I do

m_c_s

http://news.bbc.co.uk/1/hi/business/7642494.stm

Everybody gets hit one way or another!

Tallyho_2

Stavros wrote: »

If you are that seriously worried then switch some of it to another banking group, there's still some good rates out there

I can't , my savings are in 12 month fixed bonds !!

When I took out the bond it was safe in the knowledge that it was protected in an institute not umbrellad by one company , this buy out has just shafted me if things go pear shaped .