Bradford & Bingley Future?
Discussion
Is Bradford and Bingley going to turn into another Northern Rock?
A month ago the Chief Executive denied any problems, yesterday he’s after another £300 million, quite a lot for a small bank. He seems to be acting like a politician rather than as the man in charge of a PLC, has he forgotten his duty to shareholders?
Last month, a JP Morgan analyst argued that Bradford & Bingley’s business model was unsustainable as they would not be able to fund their various products from the wholesale markets. The only option therefore, was for the government to “encourage' some of these smaller/weaker banks to look for strategic partners in order to avoid getting into a trouble situation (because the need to raise capital for many of these banks is likely to be simply a question of time).”
Is there a future for B&B? Would a large bank actually want to buy them or will the taxpayer get clobbered again?
A month ago the Chief Executive denied any problems, yesterday he’s after another £300 million, quite a lot for a small bank. He seems to be acting like a politician rather than as the man in charge of a PLC, has he forgotten his duty to shareholders?
Last month, a JP Morgan analyst argued that Bradford & Bingley’s business model was unsustainable as they would not be able to fund their various products from the wholesale markets. The only option therefore, was for the government to “encourage' some of these smaller/weaker banks to look for strategic partners in order to avoid getting into a trouble situation (because the need to raise capital for many of these banks is likely to be simply a question of time).”
Is there a future for B&B? Would a large bank actually want to buy them or will the taxpayer get clobbered again?
Zod said:
They have just about the best Tier 1 capital ratio in the sector at the moment. Their risk is that further downgrades make it impossible for them to fund.
At which point they cannot legally continue to trade. When do we get to hear the "Wheely wheely wheely, Boink!" noise (from 1980's PacMan, only louder)?haworthlloyd1 said:
How much lower can they go? I thought a takeover of b and b would have been more on the cards than hbos.
If HBOS is having problems then god only knows how bradford and bingley is fairing.
Its shares are now 25p - are they the next victim?
Thing is, according to HBOS, and the FSA, they weren't having problems funding...... The markets chose not to believe them. If HBOS is having problems then god only knows how bradford and bingley is fairing.
Its shares are now 25p - are they the next victim?
grumbledoak said:
Geronimo said:
I have some shares in B&B from years ago when they turned into a building society or from a building society to a bank or something, I have no idea. Guess they're now worthless.
Not quite, but nearly. 25p if you can find a buyer, it seems. How many have you got?Timesonline said:
Analysts say even if the share price falls beneath the rights-issue price it has been underwritten by investment banks. They also say that the bank is well capitalised and its shares are trading at half its net asset value.
I think they are an attractive buy. They specialise in buy to let and in any downturn in the economy the demand for rental properties goes up. Infact just a few weeks ago a couple of the large letting agents in Cardiff were saying they now have a shortage of properties and demand has outstripped supply. I don't pretend to be a city expert but they have assests in excess of their market price. So it sounds good to me.Edited by welshbikerduck on Thursday 18th September 18:26
grumbledoak said:
Zod said:
They have just about the best Tier 1 capital ratio in the sector at the moment. Their risk is that further downgrades make it impossible for them to fund.
At which point they cannot legally continue to trade. When do we get to hear the "Wheely wheely wheely, Boink!" noise (from 1980's PacMan, only louder)?Zod said:
grumbledoak said:
Zod said:
They have just about the best Tier 1 capital ratio in the sector at the moment. Their risk is that further downgrades make it impossible for them to fund.
At which point they cannot legally continue to trade. When do we get to hear the "Wheely wheely wheely, Boink!" noise (from 1980's PacMan, only louder)?
I think with the current market up and down that they will get bought or the gov will bail them out.
Given the political arguing over the US package, I can't see Brown and team wanting to do anything but resolve it quickly.
Given powerhouses like Morgan Stanley and Goldman Sachs going cap in hand to anyone with $5bn, I think B&B are pretty much knackered. This is despite them being a reasonably decent company.
Given the political arguing over the US package, I can't see Brown and team wanting to do anything but resolve it quickly.
Given powerhouses like Morgan Stanley and Goldman Sachs going cap in hand to anyone with $5bn, I think B&B are pretty much knackered. This is despite them being a reasonably decent company.
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