Bradford and Bingley

KeithEssex_2

play nicely

what goes down often has a habit of coming back up if you wait - probably after a change at the top mind Mr Crawshaw ...

baby_boomer

Very prophetic, Keith. But who on earth would want to take over?

Telegraph - B&B Boss to step down ahead of profits warning

"Steven Crawshaw, Bradford & Bingley’s embattled chief executive, will shock the City this week by stepping down as the bank issues a profit warning.......... B&B’s chairman, Rod Kent, will take control until a successor can be found

B&B, which is in the midst of trying to rally shareholder support for its controversial £300m rights issue, is expected to say profits this year will fall well below analysts’ forecasts, which put pre-tax profit before exceptionals at between £160m and £200m. The news will raise fears among investors that UK banks have yet to reveal the full extent of their sub-prime related losses, signalling that the worst of the credit crisis is yet to come............

...............Traders fear B&B’s retail investors, who own about 40pc of the company, may not take up their rights, forcing underwriters Citigroup and UBS to take up a significant block of shares before selling them back into the market."



And in the Sunday Times

B&B to issue profits warning amid departures

ad44downey

baby_boomer wrote: »

Very prophetic, Keith. But who on earth would want to take over?

Telegraph - B&B Boss to step down ahead of profits warning

"Steven Crawshaw, Bradford & Bingley’s embattled chief executive, will shock the City this week by stepping down as the bank issues a profit warning.......... B&B’s chairman, Rod Kent, will take control until a successor can be found

B&B, which is in the midst of trying to rally shareholder support for its controversial £300m rights issue, is expected to say profits this year will fall well below analysts’ forecasts, which put pre-tax profit before exceptionals at between £160m and £200m. The news will raise fears among investors that UK banks have yet to reveal the full extent of their sub-prime related losses, signalling that the worst of the credit crisis is yet to come............

...............Traders fear B&B’s retail investors, who own about 40pc of the company, may not take up their rights, forcing underwriters Citigroup and UBS to take up a significant block of shares before selling them back into the market."



And in the Sunday Times

B&B to issue profits warning amid departures

Oh dear, so the B&B share price plunge will continue. I can't see that any small investor would partake in the rights issue now

LongTermLurker

setmefree wrote: »

like i said before the shareholders had an ample opportunity to sell their shares months ago when things started going wrong,

If everyone took a view of selling stocks at the first sign of trouble a lot of businesses would go downhill pretty quick. It's understandable for people to hold out in the hopes of a rebound. I don't think it's on to gloat, because it's not the Board getting their come-uppance, it's the ordinary man who's losing what hope he ever had in the stock market. I doubt the people that this board aims to help, who are affected by this, will have much in the way of stocks elsewhere so this is probably their hope that they would make a bit more money than just cash alone.

Me, I sold my B&B shares shortly after floatation so I'm long out of it all.

setmefree

LongTermLurker wrote: »

I don't think it's on to gloat, because it's not the Board getting their come-uppance, it's the ordinary man who's losing what hope he ever had in the stock market.

I'm sorry but i have to disagree,if a person loses their property which could be for a number of reasons do you see the ordinary man rallying around them NO.and do the Banks care NO, in fact they say you knew the risks, so on that term the same applies to shareholders regardless of the amount of shares they have.;)

LongTermLurker

setmefree wrote: »

I'm sorry but i have to disagree,if a person loses their property which could be for a number of reasons do you see the ordinary man rallying around them NO.and do the Banks care NO, in fact they say you knew the risks, so on that term the same applies to shareholders regardless of the amount of shares they have.;)

Not sure of the similarities on that one - everyone knows what a mortgage is and roughly how it works, but reading this board, many see stocks & shares as a black art. If you were talking about active investors then I'd agree with you that they know the risks, but we're actually looking at SAVERS, not investors, who were given some shares for free a few years ago. They (typically) don't know what they hold or how it all works and would normally shy away from the stock market - but they were told when they got them they could either sell them immediately or hold on to them in the hope that they may grow at a greater rate than cash deposits over the long term. (in contrast, someone told me not to sell immediately but to hold for a month or so and they would go up, then sell, which I did )

Once they started to fall, then it becomes natural instinct to hold out and hope - even though if they'd sold at 200p they would still have £500 free money. If they sell now, they will have about £220 free money (based on 250 shares). As the money is free - assuming people didn't buy extra - the sensible thing would be to cut your losses now and accept the smaller amount of free money; or hold out for a rebound if they're a Bradford (& Bingley) Bull

I remember some free shares nosediving from about 1400p to less than a pound - I think I baled out at just over a pound, but I'd already sold a chunk at £10 each, so I was happy - I didn't lose thousands, I just missed out on the chance. Now I don't know what those shares are worth because now I'm out, I'm out.

setmefree

B&B surprised industry experts back in December, when it emerged as a potential bidder for Northern Rock. Now parallels between the two mortgage lenders are being drawn as, like the now nationalised bank, Bradford & Bingley increased lending levels shortly before the market started to deteriorate.

Meanwhile, the Government is reportedly seeking a valuer to decide how much Northern Rock shares are worth, Many companies have appeared reluctant to take on the task, which is destined unlikely to appease either Government ministers or the bank's shareholders.

While shareholders are still pursuing legal action against the Government over its treatment of the Northern Rock situation, many financial groups are determined to avoid getting involved in the valuation process altogether.

I like the bit on the end, shareholders taking legal action, and if they win who foots the bill...the tax payer..the same as would happen with Bradford and Bingley shareholders..
Yes a mortgage is a different situation, but what is being said is the fact that the Government are quick enough to bail out The banks using public funding, but over the years they couldn't give a toss about all those who have lost everything through the Banks sheer greed.

moonrakerz

setmefree wrote: »

B&B surprised industry experts back in December, when it emerged as a potential bidder for Northern Rock. Now parallels between the two mortgage lenders are being drawn as, like the now nationalised bank, Bradford & Bingley increased lending levels shortly before the market started to deteriorate.

Just goes to show the "quality" of some of the people who claim to be financial experts !
B & B take over NR - joke. :rotfl:

B & B have specialised in the BTL market which is going to be the first sector that will be clobbered by any troubles in the housing market. 60% of B & B's mortgages are BTL. 22% of them are "self certified" !!

B & B is following the same path as NR - a small well run Building Society whose management saw a chance to "grow the business" by becoming a bank - I won't go on - you know the rest !

ad44downey

The only way for the share price of Bradford and Bingley with its flawed business model (like Northern Rock) is down. The best any investor can hope for is for someone to take pity upon them and take them over. But do you really want to be reliant upon this? No, so this is defintely a sell for me.

Speculator

more here....

The boss of Bradford & Bingley has quit "due to a serious cardiovascular condition", the firm has announced.

http://news.bbc.co.uk/1/hi/business/7429869.stm