Bradford and Bingley Shares Plummet In Early Trading
Yesterdays announcement of a deal with US based investment house Texas Pacific, and a warning that profits for the first 4 months of the year are just under half of the figure for the same period last year, saw Bradford and Bingley shares plummet in early trading. Such was the selling pressure on the shares they had to be suspended for a 9 minute period to restore order and allow the company to announce new terms for the planned fund raising.
The shares fell to an all-time low of just 65p as terms for the Texas Pacific were announced – 55p per share for a 23% stake in the enlarged group. While trading has since resumed in the shares there is widespread disappointment and confusion as to the short term future of the group.
Many are concerned that the group’s exposure to the buy-to-let market may well see them suffer in the short term with signs that the buy-to-let bubble may be deflating. When you consider that at the top of the market the company was worth in excess of £3 billion, against today’s value of around £400 million, it shows how serious the situation has become for the UK banking sector.
Share this..
Related stories
Another Day Another Computer Failure At The Treasury
Has the release of a critical report into the IT systems at the Treasury forced the cancellation of the department's latest super computer venture? Are the UK population getting value for money from government IT spending?
These are just two of the latest questions being asked of the Treasury department after a new computer which was to collect PAYE from 30 million of the UK's resid...
Authorities looking at alternative to taxpayer bailout
Governments and regulators around the world are set to discuss future banking bailouts which will not depend upon taxpayer money to support the system. When you consider that the UK banking bailout alone has literally cost hundreds of billions of pounds there is a need to put safeguards in place to cover any similar situations in the future. But what are the options? The UK government has stepp...
Read MoreRussian authorities threaten legal action over General Motors U-turn
In an alarming development it has been revealed that the Russian authorities are considering potential legal action against General Motors after the decision to withdraw the GM Europe subsidiary from the market. A deal was all but signed with Canadian outfit Magna, with a Russian banking partner providing the finance. However, the deal has now unravelled and General Motors will be retaining the op...
Read MoreStudents 'staying at home to manage their debts'
One in four students are choosing to stay at home while they study so that they can save money.This is the main finding of new research on student spending habits from Lloyds TSB, released today.The study found that the stay-at-homes were slightly less numerous than last year, when they made up 31 per cent of the student population.When asked why they were not moving away to study, one third of th...
Read MoreProperty prices up again
House prices rose by 0.6 per cent in April, official figures from the Land Registry (LR) show.Although this monthly increase represents a slight decrease on March's figure, the new annual growth figure of 9.1 per cent is still among the highest for two years.The average price of a property in England and Wales now stands at £179,935, up from £178,423 in March.But most of this growth came from Lo...
Read More