Qualified advisers answering your
Financial Questions
call 0800 092 1245

Why is the Bradford and Bingley in trouble again?

As banking shares in general continue to make up for lost time there is growing concern for the Bradford and Bingley and the share price of the group which is now languishing around the 25p level. The group has been in the headlines over the last few months for all of the wrong reasons - refusing to open its books to potential bidders, calling off a share stake sale and struggling to raise the much needed finance to keep the group going. So what is happening now?

There are growing problems for the group with the Buy to Let market continuing to struggle, bad debts creeping up and a £1.75 billion historic commitment to buy three final tranches of mortgages from the US - many of which have gone 'bad'. So the group is losing money, finding it difficult to raise funds and has committed itself to nearly £2 billion of extra spending over the next couple of years - although Bradford and Bingley is said to be trying to wriggle out of the deal using a 'get out' clause.

There have been strong rumours that the FSA has been trying to line up a White Knight bidder with limited success. Again, Bradford and Bingley is set to hit the headlines for the wrong reasons in the future.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details