B&B Shareholders

thinkdust

It seems quite bizarre how a lot of people seem to have forgotten about Bradford & Bingley shares, especially the media which has played this nationalisational down cleverly, and swept the matter under the carpet.

I think it's quite disgusting in this day and age how the stockbrokers within the city are the only true winners out of this matter, probably topping their previous average bonus of £800,000 last year. I've specifically written to Alistair Darling, but I presume his P.A will be at her/his computer now deleting the majority of his inbox.

I've been trying to source news on this and have found that apparently the government are looking into a compensation scheme, but I wondered if anyone else knows more information, and also whether there are any other shareholders out there affected by this theft/betrayal, after the previous large cash injection assuring B&B was safe.

simpywimpy

My cousin has shares (or should that be had). She's on holiday still but am I right in presuming she has lost all her money? I've looked out for any info but not seen anything

Farway

simpywimpy wrote: »

My cousin has shares (or should that be had). She's on holiday still but am I right in presuming she has lost all her money? I've looked out for any info but not seen anything

Not looked far enough, there is a thread already, plus I posted this today

"Shareholders now have to hold fire and wait for a Treasury appointed independent 'valuer' to decide how much, if any, compensation they might receive."

Full details here

http://www.thisismoney.co.uk/investi...in_page_id=166

and here

http://forums.moneysavingexpert.com/showthread.html?t=1158837&page=7

opinions4u

The bank had £20bn of savings, a future of NIL wholesale funding, a VERY dodgy mortgage book and £50bn of mortgages to maintain.

You had shares in something worthless I'm afraid.

sdooley

People might be miffed at having worthless shares.

But they can be furious if they bought into the rights issue - could fairly ask why the company wasn't wound up earlier.

Oblivion

Quote:

Roger Lawson, a director at the UK Shareholders' Assocation, which represents some of B&B's 850,000 individual owners, said that he was hoping to set up an action group to campaign for compensation. He noted that the nationalisation of B&B had come only six weeks after it had embarked on a £400 million rights issue that was designed to shore up its financial position.
“Many shareholders subscribed for the rights issue, which they were assured would put the company on a sound financial footing. They feel they have been misled to a large extent,” Mr Lawson said.
The Financial Services Authority, which approved B&B's prospectus, said that it was happy with the rights issue documentation.
The Treasury is expected to appoint an independent valuer to set a realistic level for B&B's shares, which could form the basis for possible compensation. This is expected to be minimal.

Dave.

opinions4u

sdooley wrote: »

People might be miffed at having worthless shares.

But they can be furious if they bought into the rights issue - could fairly ask why the company wasn't wound up earlier.

Because at that stage they thought the wholesale funding would continue?

sdooley

opinions4u wrote: »

Because at that stage they thought the wholesale funding would continue?

Did B&B have access to enough wholesale funding at the time of the rights issue? Did they have promises for more funding on its successful completion? Only their counterparties and the directors will know that.

daveinliverpool

Check with your bank, B&B had not cashed my cheque for the extra rights issue shares, dated 1 August. So I have stopped the cheque. At least I have saved that cash, even though i don't expect anything back from my shares I had with them.

Nick_C

thinkdust wrote: »

It seems quite bizarre how a lot of people seem to have forgotten about Bradford & Bingley shares ...

I've been trying to source news on this and have found that apparently the government are looking into a compensation scheme, but I wondered if anyone else knows more information

B&B posted a statement on their website on Monday morning

"Shares have been suspended on the London Stock Exchange and can no longer be bought and sold. As required under the terms of the Banking (Special Provisions) Act 2008, the Government will lay a compensation order detailing the arrangements for compensating shareholders and any others whose rights may have been affected by the transfer. We are currently unable to provide any further guidance."

http://www.bbg.co.uk/bbg/ir/bbfuture/

The sad truth is, thats all the information you will get until the independent valuer decides what, if anything, the shares were worth.

opinions4u

A fair valuation would be whatever is left over when the FSCS, £6bn Treasury loan, associated interest etc has all been repaid and the remaining mortgage book sold on.

Divide whatever is left up between the shareholders.

Might take a long time, but is the absolute fairest way.