Summary
BRADFORD & Bingley set alarm bells ringing when it revealed an [pounds]8 million loss in the first four months of the year, due largely to rising arrears on buy-tolet lending. The bank, with 2.5 million savers and about [pounds]23 billion in deposits, quickly reassured worried savers that a second Northern Rock-style debacle was not on its way and deposits were safe. But there are implications for borrowers and a knock-on effect for other banks. JO THORNHILL has advice for worried borrowers and savers.
BRADFORD & Bingley does not have the severe liquidity problems that caused Northern Rock's troubles last year. Despite the sharp rise in bad debts it announced last week and [pounds]8 million losses for the first four months of the year, it remains relatively stable.See the full content of this document
Extract
Bradford & Bingley: The Survivors' Guide
American private equity group Texas Pacific Group has paid [pounds]179 million for a 23 per cent stake in B& B, which should ensure the bank rides out the storm.
So the message to savers is not to panic. B& B's problem...See the full content of this document
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