Bradford & Bingley to issue profit warning

This in from the Times today: Bradford & Bingley is in big trouble. They are trying to do a rights issue and issue a profit warning at the same time. Can anyone tell me how one gets shareholders to pony up another 88p to buy a stock that is down from 2 quid 90 and that is writing down investments left and right. First they denied the rights issue rumour making the rounds in the City. Then they do start a roadshow for a rights issue. Now, a profit warning? The company looks a shambles.

Britain’s biggest lender of buy-to-let mortgages, Bradford & Bingley, which is in the middle of a rights-issue roadshow, will stun the City this week with a profit warning and the departure of its embattled chief executive, Steven Crawshaw.

The announcement will trigger widespread concern that British banks are sitting on a time-bomb of rising mortgage arrears and mounting bad debt. It will also reignite fears about the viability of some of our top financial institutions.

Times, 01 June 2008

See: Credit Crisis Timeline for a full list of writedowns and capital raising by institution and a timeline of the credit crunch.

See also: Other posts under the label ‘UK.’

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