Monday 15 September 2008

Halifax shares have recovered to 16 pct down

The previous blog had the shares of UK mortgage bank Halifax Bank of Scotland (HBOS) down to £2.29 but now they have recovered to, sorry, volatile trading and they
are down 21.6% pct to £2.21. This is not good. Apparently, the stock market does not like the funding structure of the bank, which is very reliant on wholesale finance. The share price performance is telling us that Halifax is in a weak position.
The Bradford and Bingley, my favourite British bank, has also been marked down by just under 15 pct, which is again not good.
www.searchaccountants.co.uk My wife still has some shares in Bradford and Bingley, which was once a proud Northern building society. However, it did raise £400m from investors and is apparently shrinking its lending. I was really unimpressed by B and B venturing into synthetic products.

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