Friday, Jul 04, 2008
Never mind ... The BoE will help them (secretly)
BBC News: B&B confirms new cash call plans
TPG walked away from its deal to buy the stake in B&B after Moody's, the credit rating agency, announced it was downgrading the long-term debt of the UK mortgage lender.
Posted by angonamo @ 09:40 AM (405 views) Add Comment
8 Comments
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1. whiteknight said...
How anybody can value anything attached to this is a mystery to me.
How can you input anything into a mathematical model that accomodates the fact that an uknown amount of funding is coming from a Third Party?
How can you value the gilt for that matter? Because an unknown number of them have been exchanged for mortgage backed securities?
Any ideas or further information on how this all works then please elaborate for me. my brain exploded.
2. Rental John said...
See http://www.bbg.co.uk/bbg/mc/releases/mc_groupnews/pressrelease/?id=4683301
3. whiteknight said...
"You asked for a miracle, I give you the FSA & the BofE"
All that "liqudity" they pumped in....... Straight into energy prices? Whoopsie.
4. whiteknight said...
OK. They were aided and abetted by the FED...
5. planning4acrash said...
My Freedom of Information request:
http://www.housepricecrash.co.uk/newsblog/2008/07/blog-we-are-not-allowed-to-know-how-much-of-our-money-was-used-to-bail-out-this-failed-bank-14829.php
6. icarus said...
Love the Orwellian upbeat-speak.
The group failed to make provision for a worse-case scenario = "the group has been hit by the credit crisis and the downturn in the property market".
We're in deep trouble and we desperately need cash = "the capital raising will reinforce our position as one of the better capitalised banks" (if that were true then a better way of putting it would be that it is less under-capitalised than most other banks).
I liked the comment "UK investors have more of an interest to shore up the British banking system, while TPG was motivated more by self-interest". Oh those selfish Americans and those patriotic British. But isn't the financial system supposed to be global? Oh yes - underwriting the rights issue are Citigroup of New York and UBS of Switzerland.
7. icarus said...
P4AC - bet you got no joy from the information commissioner in Cheshire (did you bother to write to them?). Can you imagine them saying "Yep, we've told the BoE not to be so secretive because in our judgement there is no danger to the banking system in the public's being kept informed about the extent to which the BoE is bailing out banks". It's completely beyond their pay grade to override the BoE's judgement but it would be interesting to know how they worded it. Would there be words like 'ongoing' 'review' 'consultation' 'balance' and 'prudent' in the letter?
8. who stole my pension? said...
If you want a laugh look at this page title and then the green advert.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/03/cmbanking103.xml&CMP=ILC-mostviewedbox