Bradford & Bingley Shares Crisis

A suprise first quarter loss in 2008 prompted fears of a Northern Rock style collapse at Bradford & Bingley the former building society. Weakness in the buy to let market is a factor in the losses as the so-called credit-crunch has started to bite. On 2nd June shares fell by almost 25% to around 67p - around about one fourth of the original launch price in 2000. Beleagured investors left facing the question "should I sell my Bradford & Bingley shares?" were in a dilemna.

Chancellor Darling maintained that investors and dsepositors should sit tight, and that a repeat of Northern Rock was unlikely.

However, with the worsening situation, at the end of September 08, the Chancellor announced a rescue package. This involved selling much of the business off cheap to Santander, the Spanish group that already owns Abbey and Alliance & Leicester. The result being that Bradford & Bingley's banking business (branches, telephone business and internet business) could carry on as normal. Customers have been able to continue to operate their bank accounts just like before. It may be that some customers will look to switch bank accounts or to have accounts at several different banks.

The Bradford & Bingley mortgage business and the headquarters were taken into public ownership or "nationalised"

Bradford & Bingley shares, as a result, are virtually worthless, although an independent valuer will probably be appointed to see if there should be anykind of payout to Bradford & Bingley shareholders.

For those wishing to sell shares, Halifax and TD Waterhouse offer excellent online share dealing prices and cheapest prices.