Bradford & Bingley shares crashed 16% to 42p yesterday, dropping further below the 55p-a-share price of its £400m rights issue, as the City speculated that the buy-to-let lender is worthless, The Telegraph reports.
Pali International, a stockbroker, cut its target price for the bank to "zero" and calculated B&B's "net present value" to be -14p. In a separate note, banking specialist Fox-Pitt, Kelton said: "We cannot rule out the possibility of an effective failure with shareholders receiving little or nothing for their shares."
This came in the wake of last week's Moody's downgrade and decision by TPG to pull its planned £179m investment. In frantic efforts to keep B&B's capital raising on track, four of its core shareholders stepped in to support an enlarged £400m rights issue alongside the six largest high street banks.
EUROPE’S CHIEF FINANCIAL regulator will tell its finance ministers today that he intends to table legislation in the autumn to regulate the activities of credit-rating agencies, according to The Times.
The move by Charlie McCreevy, the European Internal Markets Commissioner, comes as Alistair Darling is expected to press for Brussels to begin a more wide-ranging review of the role of ratings agencies in Europe's broader system of financial regulation.
The Chancellor will tell fellow finance ministers that undue reliance on the agencies in regulations for banks and financial institutions has discouraged investors from making a proper, independent assessment of the risks they are taking, particularly with complex financial instruments.
CREDIT SUISSE HAS promoted one of its star investment bankers, the son of a former Bank of England governor, to run its business in the UK, The Independent reports.
James Leigh-Pemberton, 52, was yesterday appointed chief executive of Credit Suisse in the UK, overseeing its investment banking, asset management operations and private banking. He will also keep his job as chairman of UK investment banking.
The Eton and Oxford University educated banker has worked at Credit Suisse for 14 years in equity capital markets, after joining from SG Warburg Securities. Insiders at the Swiss bank said he "is one of the group's most senior bankers in Europe".IFAonline
All-day event on 24 April
Consequences could be more severe than in stress tests
AFH has six segregated mandate funds
Variable operating expenses