Bradford and Bingley

Treadmill

B&B shares are bombing again, anyone know why ?

Is it to do with them lending money to any tom !!!!!! and harry ?

m00m00

http://www.citywire.co.uk/personal/-/news/markets-companies-and-funds/content.aspx?ID=303536

Shares in embattled lender Bradford & Bingley fell more than 9% on Monday morning on worries over bad debts.

many other banks being hit today too

good job the credit crunch is over, and things are back to normal then

WTF?_2

Apparently HBOS are pretty much down to the level they crashed to when they got hit by the 'short selling scam' a couple of months back.

Hmmmmm :think:

Ivor_Bigun

m00m00 wrote: »

http://www.citywire.co.uk/personal/-/news/markets-companies-and-funds/content.aspx?ID=303536
many other banks being hit today too
good job the credit crunch is over, and things are back to normal then

It's those damn shorters selling stock they do not have, trying another NRK with BB.

dopester

m00m00 wrote: »

good job the credit crunch is over, and things are back to normal then

I know you're saying that with some sarcasm, joking at the front the IMF and others would have people believe, but the ECB has rocked the happy boat a bit today.

Worst of credit crunch 'may be ahead'

Kathryn Hopkins
guardian.co.uk,
Monday May 19 2008

Fears over the state of the economy were heightened today as Jean Claude Trichet, president of the European Central Bank, indicated that the worst of the credit crunch may be yet to come.

Warning that the market was experiencing an "ongoing, very significant" correction, he compared the recent rises in energy and food prices to the oil crisis of the 1970s when higher wages undermined Europe's ability to compete. Trichet is concerned that the resulting sharp rise in unemployment could be repeated if wages and prices continue to rise this time.

..continues

brit1234

Ivor_Bigun wrote: »

It's those damn shorters selling stock they do not have, trying another NRK with BB.

Or could it simply be that the B&B concentrating on buy to let and self cert mortgages have a very vulnerable loan book and now the public are finding out.

No one is touching B&B or A&L because they are about to go insolvent.:exclamati

brit1234

However like Paragon they seem to continue lending till the funds run out.


So if you want a buy to let here is the Bradford & Bingley Buy to let audio guide.

Program 1 - Podcast from the Industry experts:
http://www.bradford-bingley.co.uk/_img/mortgages/podcast1.mp3

Program 2- Podcast from experienced landlords:
http://www.bradford-bingley.co.uk/_img/mortgages/podcast2.mp3



:exclamatiThe problem is they are talking to people who done well in the previous years before the credit crunch and house price crash. The situation is extremely different today and in fact dangerous.:exclamati:rolleyes:

:exclamatiBradford & Bingley shares -16% today alone

Generali

brit1234 wrote: »

:exclamatiBradford & Bingley shares -16% today alone

They announced that they were going to sell shares in themselves today thus 'diluting' current holders of stock. That means that the shares previously issued are likely to be worth less (as opposed to worthless) as the money raised isn't going to be used for anything productive instead it will be used to shore up the balance sheet.

If they can get the sale through (and a 16% drop suggests they can) then it makes them more secure long term and less likely to be a part of taxpayers' slowly growing stock portfolio (Northern Rock and Network Rail have been buy to hold long-term so far).

Link to the Bloomberg story

WTF?_2

Generali wrote: »

They announced that they were going to sell shares in themselves today thus 'diluting' current holders of stock. That means that the shares previously issued are likely to be worth less (as opposed to worthless) as the money raised isn't going to be used for anything productive instead it will be used to shore up the balance sheet.

Surely, if you're a lender then shoring up the balance sheet is productive as it ensures you are able to continue to lend....?

ManAtHome

Combination of their mortgage book and "everything's ok, we're well capitalised until 2009".... slight pause... "whoops must have dropped £300 mill down the back of the sofa"

Generali

!!!!!!? wrote: »

Surely, if you're a lender then shoring up the balance sheet is productive as it ensures you are able to continue to lend....?

You'd think so but it isn't the case. Given that they yield 20% (twenty per cent) at the moment they are, in effect, paying a huge rate of interest for this financing.

Any business with cash and confidence in the future that had an historic yield of 20% would be buying back stock not selling it!

The point I was trying to make earlier is that a 16% fall in the share price is exactly what you'd expect in the circumstances. If anything it's quite a mild reaction if you assumed previously that BB are going to carry on paying this dividend.