Bradford and Bingley Default

mbga9pgf

mewbie wrote: »

This rebranding thing. Can Generali advise with his economic knowledge whether this is the financial equivalent of polishing a turd?

Perhaps if they spent a mint on a load of A list actors and celebrities they can prevent their banks going bust?

tomterm8

mewbie wrote: »

This rebranding thing. Can Generali advise with his economic knowledge whether this is the financial equivalent of polishing a turd?

i think it is so that the santander branch system can be consolidated. I hate to think how many towns have three or more branches all under different names.

Oblivion

tomterm8 wrote: »

i think it is so that the santander branch system can be consolidated. I hate to think how many towns have three or more branches all under different names.

No doubt ... and I wonder how many branches and UK jobs will be lost in the process? The fallout from this recession has a long way to go yet.

Dave.

ilovelorrainekelly

It would appear for reasons best known to themselves that the government is doing all it can to avoid triggering a credit event and thus the resulting exercising of credit default swaps. The city has been trying to evaluate the actual status of this non payment, is it or is it not a default. To bring order they surely have to provide clarity tomorrow.

If they are winding up B and B how will they acheive this given the outstanding mortgages to borrowers. Given the duration of outstanding debt can be another 25 years how can it be wound up.

chucky

ilovelorrainekelly wrote: »

It would appear for reasons best known to themselves that the government is doing all it can to avoid triggering a credit event and thus the resulting exercising of credit default swaps. The city has been trying to evaluate the actual status of this non payment, is it or is it not a default. To bring order they surely have to provide clarity tomorrow.

If they are winding up B and B how will they acheive this given the outstanding mortgages to borrowers. Given the duration of outstanding debt can be another 25 years how can it be wound up.

i wouldn't have thought so - there is not a huge amount of trades out there with B&B as the underlying.

sabretoothtigger

I think the oppisite is true, company debt will appear less attractive compared to gilts so maybe the government is doing themselves a favour in not paying a bill they did not run up

present uk banks have use of a government bond guarantee if required, can bs use that ? maybe it'll effect them but this doesnt appear to be a mini lehmans risk perception correction event.

The yield was 40% as mentioned, does this default mean the bond cannot be made good later

GDB2222

ilovelorrainekelly wrote: »

If they are winding up B and B how will they acheive this given the outstanding mortgages to borrowers. Given the duration of outstanding debt can be another 25 years how can it be wound up.

Eventually, they will sell the loan book to another bank. That's not a problem in the long run.

mbga9pgf

GDB2222 wrote: »

Eventually, they will sell the loan book to another bank. That's not a problem in the long run.

Going off how many lenders are turning down B+B customers for remortgage, what makes you think they will want to buy their (dodgy) loan book?

GDB2222

This word 'eventually' means nothing to you then?

Assuming that we have some inflation either in wages or house prices, the loan book will be saleable. Even now, it's saleable, given a suitable discount. The problem at the moment is to determine a fair discount.

Generali

mewbie wrote: »

This rebranding thing. Can Generali advise with his economic knowledge whether this is the financial equivalent of polishing a turd?

It is perfectly possible to polish a turd:

http://www.youtube.com/watch?v=hBj6PonX14A