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

computerbar

even this guy (FT banking editor) gives indication about A+L, Bradford.B and HBOS to be the next ones.


http://video.ft.com/ukdailyvideo/?clipid=1359_FT0409
watch the end of this Video.

Mr_Mumble

It was the third biggest faller in the FTSE-100 on Friday as well, with Northern Rock's problems its only natural for other mortgage banks to suffer in sympathy.

The falls are not just because of worries over A&L itself but the probability of a wider UK property market collapse. The largest fallers after the mortgage banks are house builders, property companies and estate agents!

[Deleted User]

EdInvestor wrote: »

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.

Plus it owns the post offices banking structure and the GIRO system. It doesnt offer 125%LTV mortgages and has extreemly strict credit controls on its unsecured loans. All in all a much better prospect but that doesnt mean that the share price wont suffer as a loss in confidence in the banks reins down. Id cetainly be more interested in shares in HBOS and A+L then NR, and have previously been invested in HBOS. But its not the time for me right now. The pension companies will stay in, despite the city traders playing about with the price cashing in on fears by shorting.

cowbutt

zag2me wrote: »

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

This is near-universal. Look up 'fractional reserve banking'.

olivelee58

I'm watching my A&L direct saver account with some anxiety, do you think I should withrow my saving now? If so, I will lose my monthly interest which is quite significant amount to me. How serious is it? I can't really see a clear picture, as I am panic a lot. Can anyone explain the situation more clearly, please? Much appreciated.

[Deleted User]

No do not withdraw your savings as far as im aware at A+L there are no concerns.

Dithering_Dad

Lordy, don't say there will be a run on A&L and other banks. I'm going to have to empty my offset account account and start buying shares in the banking sector while they're nice and cheap!

fimonkey

Lol,... yes go on, withdraw your savings and stuff them under the mattress! Oh yeah and sell your house NOW cos it's at teh top of the market and about to fall in value by 50% (according to some other posts on this board today).. Just don't leave your mattress and the money behind ... he he, sorry, only trolling. .... BUT I am secretly hoping for everyone to panic and withdraw their savings, then down the line the house price crash... then I can afford somewhere of my own with my nice fat deposit ...which is safely stowed under my bed ;-)

[Deleted User]

If a+l shares come down more i might be tempted myself, but id prefer to wait to see how dented profits are by the increased cost of lending. They were way too fat at 12 quid, bulls been out for too long on banks + property hopefully england should correct itself if it puts up interest rates up to about 8%, midway into the corrective depression would be the most sensible time to buy.

I will be in negative equity but I can more then afford things if IRs go up to 15% as I planned for it (its a home not a investment for me). I have bought in a industrial heartland at a reasonable price, not in a area where prices are heavily inflated such as city centres. What comes around goes around as they say.

uk_steve

wow £6 a share with A+L