|Bradford & Bingley
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Real-Time news about Bradford & Bing (London Stock Exchange): 0 recent articles
|loganair: Goldman Sachs To Advise UK On Bank Sales:
Goldman Sachs is to advise the Government on the sale of its remaining stakes in Britain's bailed-out lenders at the same time as one of its divisions tries to acquire billions of pounds of bank assets from the taxpayer.
Sky News has learnt that Goldman was hired as the privatisation adviser to UK Financial Investments (UKFI) just days after George Osborne announced that he would begin selling the state's shares in Royal Bank of Scotland (RBS) within months.
Goldman's appointment may prove to be controversial given criticism of its role advising the Treasury on the nationalisation of Northern Rock in 2008, and its securities division's interest in buying Granite, a £13bn mortgage portfolio put up for sale by the Chancellor earlier this year.
Underlining the web of relationships managed by investment banks, the Wall Street giant worked with Bradford & Bingley on its attempts to stave off collapse in 2008, and attempted to broker a rescue deal led by TPG - one of the firms that Goldman is now partnering with in an effort to buy the Granite assets.
To add a further layer of complexity, Goldman will be advising UKFI on the sale of its shareholding in RBS, while also competing against RBS as a rival bidder in the Granite auction.
Goldman will replace JP Morgan as UKFI's privatisation adviser, and will assist the Treasury agency with its plans for placing billions of pounds of shares in Lloyds Banking Group and RBS.
Sources said Goldman - like JP Morgan before it - would be paid for its work with UKFI, although that may involve a discount to its usual commercial fee, in line with much of the work done for the Government on asset privatisations in recent months.
The Conservatives committed during the General Election campaign to launching a retail offering of Lloyds shares within 12 months, with bonus shares offered to investors who retain their stakes for a minimum period.
Outlining his plans for RBS in a speech at the City’s Mansion House last week, Mr Osborne described the lender as "the hardest nut to crack", adding:
"I was not responsible for the bailout of RBS or the price paid then for shares bought by the taxpayer: but I am responsible for getting the best deal now for the taxpayer and doing whatever I can to support the British economy.
"There is no doubt that starting to sell the Government’s stake in RBS is the right thing to do on both counts."
The Chancellor pointed to advice from the investment bank Rothschild and Mark Carney, the Bank of England Governor, that further delaying the sale made little sense, even though a disposal of taxpayers' 78% stake in RBS at the current share price would result in a £7bn loss.
Rothschild's report suggested that when fees paid to the Treasury by rescued banks were taken into account, taxpayers could make an aggregate £14bn profit if the remaining stakes in Lloyds and RBS were sold at their current levels.
The appointment of Goldman comes as RBS overhauls its own City relationships, with Bank of America Merrill Lynch expected to replace UBS as one of the taxpayer-backed lender’s corporate brokers.
Jim O'Neil, a respected investment banker who previously ran UKFI, will be among the key figures overseeing the relationship if the move is confirmed.
Spokesmen for both UKFI and Goldman declined to comment on Thursday.|
|pwhite73: What is most annoying is that prior to its nationalisation BB was only capitalised at about £250 million due to an already collapsed share price.
That is all the compensation the government would be required to hand back to BB ordinary shareholders. If memory serves me correct just before nationalisation the shares were trading at about 20p.|
|loganair: What I read is that the Government could easily return to the B&B shareholders 50p per share (price of the B&B Rights Issue) as wouldn't even cost them £1bln out of the many, many £blns they are gong to make out of B&B in profit.|
|knicol46: I had decided to buy over 800000 shares in the 2008 Bradford & Bingley rights issue with the understanding on the facts available at the time. If I had known what was hidden behind the scenes I would have avoided (like many others) investing in this. The nil paid rights were worth nothing when they lapsed. The ordinary share price also plummeted and eventually was nationalised.|
|knowing: Upper Tribunal Further Submission
THE NATIONALISATION OF BRADFORD & BINGLEY [B&B]
Whether due to Criminal Deception or Political Subterfuge, it is time for an Independent Inquiry.
The B&B Action Group [BBAG] campaign has replied to the Statement of Case of the Respondent, the independent valuer of the B&B Compensation Scheme Peter Clokey [PC], which was made in accordance with Schedule 3 to the Tribunal Procedure [Upper Tribunal] Rules 2008 and the directions made by the President of the Upper Tribunal.
This response is available on our website at www.bbaction.org/News.htm .
Our view and our legal advisers is that the Valuer's 'in administration' terms of reference specified by the previous Government ensured that a nil valuation was inevitable.
The responses of various government departments and the tripartite regulators to thousands of requests for information after the Nationalisation have been a mix of obfuscation and subterfuge. This and the information restrictions placed on the Compensation Order has prevented BBAG from properly exercising its rights of appeal. Just one example highlights the previous Government's desperate attempts to conceal the truth in the months prior to the General Election in May 2010. The Cabinet Office's reply to a request for details of the sequence of events pre and post the nationalisation under the Freedom of Information Act [FOI] was 'we have no files whatsoever'. This statement was untrue. On the 26th of September 2008 Gordon Brown in a telephone conversation with Alistair Darling made the decision to nationalise B&B which had a far stronger balance sheet than the Royal Bank of Scotland or Halifax Bank of Scotland who received over £60 billion of support just eight days after the B&B nationalisation. The following week the Conservative Party Conference was being held and there is little doubt that the Prime Minister's decision was motivated by fear of David Cameron's clean cut features interposed with queues of savers outside B&B branches on the TV screens of the nation.
All the evidence suggests that the reporting standards approved by the previous Government were flawed. How else were B&B's auditors able to sign off the 2007 Report & Accounts as a going concern and the Rights Issue, completed less than two months before the Nationalisation at a share price of 55p, be approved by the Financial Services Authority [FSA]. Standing in front of a well attended city analyst's meeting on the 29th August 2008, one month before the Nationalisation, the message of the B&B Chairman Rod Kent and the Chief Executive Richard Pym was:
"THE RECENT FUNDRAISING REINFORCES OUR POSITION AS ONE OF THE BEST CAPITALISED BANKS IN THE UK. WE ARE WELL CAPABLE OF RIDING OUT THE CURRENT STORM"
This message was repeated in a B&B board press release on the 25/09/08 and by Rod Kent to the Treasury Select Committee on the 18/11/08 which was in stark contrast with the briefings by Treasury officials to Robert Peston of the BBC whose comments in the media and the press caused a run on the B&B savings book and a false market in its shares and bonds. In paragraph 25, section 15 in Peter Clokey's statement to the Tribunal he does not accept the accuracy of these assertions, so who has been telling the truth in all of this?
The failure of the previous Government and the tripartite regulatory system resulted in a flawed decision made in haste for political reasons by Gordon Brown. We have urged the Tribunal to recommend to the present Government that a full and independent inquiry be established to find where the truth lies and recommend measures to properly protect private investors from any further debacles of this nature.
On the 20th May 2010 we advised you of a new legal entity, B&B Action Ltd, formed as a company limited by guarantee so as to continue the fight for B&B shareholders. This initiative was taken so that BBAG could take whatever action it was felt necessary and so that it could be focused on the interests of B&B investors alone and would have better control over administrative costs (as opposed to relying on a third party which we had done previously). Since then a new not for profit organisation, "Sharesoc" otherwise known as the "UK Individual Shareholders Society", has been formed to promote the wider interests of shareholders in UK registered public companies. I am a board member of this new organisation and the chairman is Roger Lawson who is also a director of BBAG. Their website is www.sharesoc.org . I recommend you visit that website and apply for associate membership which is free of charge if you have a wider interest in stock market affairs other than just in Bradford & Bingley.
|loganair: So B&B didn't require any help from HMG, so really except for a very short term liquidity problem cause by the report made by Preston, it was is in pretty good shape.
"no additional capital has been provided since nationalisation."
If B&B had not been Nationalised and the branch network sold off IMO B&B share price would now be at least £1 on the open market.
IMO - There was a deal struck by HMG and Santander to buy A&L and B&B on the cheap then to take over 300 branches from RBS which is now basically owned by HMG.
One things for certain how ever good the savings rate offered by Santander I'll NEVER open a savings account with them or take out any other product with them.|
|birchin: Richard Pym, chairman of Bradford & Bingley, is to be reported to the Financial Services Authority (FSA) over allegations that he attempted artificially to inflate the bank's share price before its collapse in September 2008. An action group of former shareholders claims that Pym fed investors misleading information about the bank's financial health, the Sunday Times reports.
|zastas: That's a good one! Perhaps we can turn it into a West-End play, the BB. tragi-comedy, starring characters of Brown,Darling, Balls,Cooper, King, King(Tom), Peston, Clokey, Crawshaw, Pym,Sants and a few others. With plastic bricks for the audience/ 100k+shareholders for a public 'stoning' at the end. A BB. share certificate as consolation price for the most hit target.|
|loganair: I still think, so all the old grannies do not lose out, there needs to be some thing like one gets the orginal floatation price on say the first 1,000 shares, with a caveat that these 1,000 shares have been held for at least 1 year before nationalisation.
Well, at least that would be the RIGHT thing to do if justice is to prevail.
That is why I still the the RIGHT thing to do is, up to a certain number of shares, say 20,000 or 30,000 to give the following.
1). Those who bought the Rights to get the full 55p per shares back up to the maximum number of shares.
2). As it would be wrong for those who bought in over the last few days to make a huge profit, any share purchased after the Rights to get the share price at Nationalisation.
3). Then say 100p for those who purchased before the Rights issue.
In my view this would be a fair and proper compenstaion to the B&B share holders.|
|diydan: Plunging bank share prices raise questions over take-up for cash calls
David Teather The Guardian, Friday May 30 2008
There was further pressure on the shares of Royal Bank of Scotland and Bradford & Bingley yesterday amid concern that investors would shun their rights issues.
The share prices have fallen sharply since the cash calls were announced and are getting ever closer to the discounted offer price.
RBS fell as much as 6% yesterday before closing 6.25p lower at 231.75p. The shares on offer have been priced at 200p. At the time of the rights issue announcement, they were at a discount of 46% but the differential is now only 16%.
Bradford & Bingley is even closer to the rights issue price of 82p a share, dropping 6.75p yesterday to 90.5p.
RBS is planning to raise £12bn and Bradford & Bingley £300m. Both have been underwritten, which means the banks will get their cash whatever happens.
But traders have cited growing concerns about the size of the "rump" the underwriting banks will be left with and that would weigh on the price. Should the share price fall below the offer price, there would be little point in investors taking part. If the rights issues run into trouble, it will have implications for any further issues from the banking sector, forcing them to discount even more heavily and potentially pushing up the fees they have to pay the underwriters.
There is particular concern that retail investors do not have the cash to take up their rights in the difficult economic climate. At Bradford & Bingley retail shareholders account for 34% of the stock.
One source suggested that the RBS share price has been put under pressure by institutions selling stock before taking up their rights and in effect buying the shares back at the discounted rate. The shares are also likely to be coming under pressure from short sellers, who can profit from a falling share price.
The RBS share price was also put under pressure by a shrinking list of suitors for its insurance division.
One trader said that there was "talk of rights indigestion. If this rights issue is a disappointment, the share price of RBS would surely tank."
A source close to Bradford & Bingley claimed that there had been strong interest in the issue from institutional investors, although they will not fully commit to taking up their rights until the deadline on July 9.
The RBS rights issue is underwritten by UBS, Goldman Sachs and Merrill Lynch. Bradford & Bingley's is underwritten by UBS and Citigroup.
Bradford & Bingley share price data is direct from the London Stock Exchange