Alliance & Leicester - 2nd Biggest loser on market this morning.

computerbar

Looks like Alliance & Leicester (A+L) is losing their customer confidence after what happened to NR.
I have read quite few articles here and there about the NR situation and I noted that there were some fingers pointed at A+L too to be the next one. I guess some people took it as serious warning or it might be just because a crappy morning in stock exchange.

check A+L shares price
http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23135/default.stm

zag2me

They lend alot more than they have in deposits, not dis-similar to northern rock.

computerbar

I am glad I did not opened an account with them last month. this situation would make me worried for nothing I guess.

uk_steve

mmm looks like i be moving my money to n s and i at this rate:eek:

dunstonh

Everyone start to panic, a meteorite is going to hit earth some time in the next 65 million years.

[Deleted User]

A+L is about 40% exposed to the interbank rate thus its going to take a profit hit. But this is the same as most banks, HBOS is also about 40% exposed. But the main one is NRK which is in the region of 80% exposed given the loss of savings customers.

Its testing times on banks at teh moment, I jumped ship about a year ago now. Things should settle by november, probably...

Dithering_Dad

dunstonh wrote: »

Everyone start to panic, a meteorite is going to hit earth some time in the next 65 million years.

Actually, it'll be much sooner than that, statistically we are actually overdue to be hit.

Then again, Yellowstone park is sitting on a super volcano, which is overdue to blow. The surface of the park has risen 74cm that it was in 1923. The volcano is on a 600,000 year cycle, the last time being 640,000 years ago.

A super volcano the size of yellowstone park would virtually destroy the US and would cause us to have several nuclear winters, driving man to the edge of extinction. The last one to go was in Sumatra 75,000 years ago causing global temperatures to drop by 21 degrees.

If you have any US shares or savings in US banks or even property in the US I would withdraw the money ASAP!!

EdInvestor

zag2me wrote: »

They lend alot more than they have in deposits, not dis-similar to northern rock.

A&L has a market cap of 4bn pounds (NR 2.6bn before the crash), so twice as large. It has securitised mortgages of 3.3bn (NR 46.4bn).Relative to its market value, A&L's securitisations are 84% (NR 1,725%!). Relative to its total loans, capital market reliance is 7% (NR: 54%)


So not very similar at all really.There's no real comparison between NR and the rest of the banks in terms of dependance on the markets for money.

dunstonh

If you have any US shares or savings in US banks or even property in the US I would withdraw the money ASAP!!

If yellowstone goes, then thats a potential global killer. Still, good enough for me to queue outside my LloydsTSB at 6am and ask for my money back.

gt94sss2

For whats its worth:

Which other banks are exposed to the liquidity crunch?

Northern Rock is most exposed because 73pc of its funding comes from the wholesale market, and the rest from retail deposits. The others with large exposure are Halifax owner HBOS, with 43pc, Bradford & Bingley, at 42pc, and Alliance & Leicester at 38pc. Lloyds TSB has 28pc exposure, Royal Bank of Scotland 17pc, Barclays 10pc while HSBC more than covers its mortgage liabilities with customer deposits. (from here)

Regards
Sunil

wombat42_2

gt94sss2 wrote: »

For whats its worth:

Which other banks are exposed to the liquidity crunch?

Northern Rock is most exposed because 73pc of its funding comes from the wholesale market, and the rest from retail deposits. The others with large exposure are Halifax owner HBOS, with 43pc, Bradford & Bingley, at 42pc, and Alliance & Leicester at 38pc. Lloyds TSB has 28pc exposure, Royal Bank of Scotland 17pc, Barclays 10pc while HSBC more than covers its mortgage liabilities with customer deposits. (from here)

Regards
Sunil

Bradford and Bingley down about 12% (they are in the FTSE250)