Bradford and Bingley’s shares plunged to new lows this week as investors are left reeling from TPG’s decision to walk away from the rescue deal worth £400 million. TPG, who had been set to buy a 23% stake in Bradford and Bingley withdrew from the deal after ratings from Moody’s, the rating agency downgraded B&B. The bank had already rejected Cowdery as an alternative to TPG two weeks previously, and many investors are furious and believe B&B to be in a lot of trouble.
Many brokers are likening the demise of the bank to Northern Rock. Whilst the treasury have announced a set of plans that are set to avert a similar situation occurring again in the future many believe Bradford and Bingley to be headed the same way as the Rock. Chairman of B&B Rod Kent will surely to hoping that it is not too late for B&B to be saved from a similar fate.
Lucy Trueick
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