Having owned up to an interest of 250 shares in UK mortgage bank Bradford and Bingley held by my wife, I think I will share with you, my readers, the painful
consequences of this stake. The shares are trading at around the 67 pence level
after recently reaching over four pounds. Why did'nt I sell in time? One reason the shares were held by my wife and were not for me to sell. The second reason is that as she got the shares for nothing, it made some kiind of sense to hang on.
Although the share price performance is painful, Bradford and Bingley can be complimented for taking steps to avoid a funding problem, which sank
Northern Rock.
www.searchaccountants.co.ukShould B and B shareholders take up the capital raising operation? Investors have to decide in line with their individual circumstances. I hope they do take up the operation, since this would further bolster the capital strength of the mortgage bank, which has been hit by buy-to-let arrears. Long-term, it looks like U.S group
Texas Pacific will decide the future of the UK institution and they are pretty hard-nosed.
Apparently, the City is pretty annoyed by the shambles at Bradford and Bingley. I do get the sense that the whole affair has a lot more to run.
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