Move money from B&B?

Mr_Mumble

dunstonh wrote: »

Here we go again. B&B send out a profits warning and the share price drops in line with that warning and now we have all the scare stories coming out which will do more damage than good.

B&B still turned in a profit. It just wasnt as high as expected.

Northern Rock still turned in a profit was the line used last August! Profit is irrelevant when you have a huge mortgage book of dodgy loans prone to rapid and seismic devaluing. "Price to Tangible Book Value" not "Price to Earnings" is how banks are being measured by financiers at the moment.

setmefree

purch wrote: »

Unfortunately the more and more people do react to the scaremonering the more and more likely it is that the B&B headlines will impact everybody's money

The Problem is, that last time the Banking Industry and the Government blaimed the media for the collapse of N.R., now this time the only real hyped up publicity has been done concerning B+B was yesterday and today. and by this time the shares were in trouble.
So it's only natural that customers are going to withdraw their funds now,after the powers to be can't blaim the media this time , and what's more, where the hell has the £80 billion gone that has been invested by this Government...things ain't changed have they, well maybe for the worse.

JimmyTheWig

How can you be sure that this is the one that will go under? It strikes me a bit like changing lanes in a traffic jam on a motorway. You often end up in one worse than the one you moved from.
Buying a house takes months. You're not going to need access to that money the day you see somewhere you like...

Obviously it's a completely different story if you can get a better rate elsewhere.

BenL

If you are at all worried, for your own piece of mind move the cash to somewhere you believe to be safer.

You have to look after yourself and incase you need the money you don't want it tied up in all the hassle that would happen if the bank you use goes under - unlikely but goes back to looking after yourself.

Take a read over Martins, are your savings safe article as well.

The FSCS can call £4Billion to pay out if somewhere goes under straight away. This apparently can only cover the UK's 25th largest bank so the government will stump up the rest and then be paid back by £4Billion max a year by the other members of the FSCS.

I think it would take quite a while for the money to come through and you would be out of action during a time of uncertainty and may not be able to take advantage of anything that comes up - all hypothetical of course though.

baby_boomer

B&B is not Northern Rock. It didn't raise its money for lending in the same way.

Its shareholders are taking the hit because profits are on the slide due to the outlook for the housing market and buy-to-let.

But its savers don't need to worry.

P.S. I am a shareholder - 250 shares - but my family sold most of ours at between £4 & £5.20

campins

Is this likely to cause B+B to drop their savings rate and if the crisis turns out to be as bad as N. Rock, will the government do another bail out