I started this blog in June 2007 asking these questions: Are we in a massive asset bubble that will blow up in our faces ??? - ANSWERED YES ! Is western and particularly British society on the verge of social collapse??? What are the best common sense long term investment strategies to keep you rich? When will consumption/debt bubble economics end and a real savings/production economy begin ???

Tuesday 23 September 2008

Bradford & Bingley is flat on its back but it is still buying junk US mortgages



The latest bank to find itself the focus of attention from speculators is the Bradford & Bingley.

Several newspapers report that the Financial Services Authority (FSA) is so worried about the bank that it has been trying to line up a potential buyer to rescue it.


The bank denies it and the FSA is being very coy.

But there is no doubt the B&B is in a very awkward spot.

The former building society is heavily exposed to the now shrinking UK property market and last year was the UK's 8th largest lender of new mortgages.

Last month, it reported a loss of £27m for the first six months of the year, blaming this on a rise in bad debts and losses on its own investments in dud mortgage-related derivatives.

more ...

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