Bradford & Bingley leads banking shares rout

| June 2, 2008 | 0 Comments
Bradford & Bingley leads banking shares rout

Shares in Bradford & Bingley have plummeted more than 25% on the London Stock Exchange this morning.

Shares in BB lead falls across UK banking shares, which have already been suffering steep declines since the Credit Crunch took hold in August 2007.

At the time of writing, shares in BB were trading at 65.50 - down from 88.25 on Friday’s closing session. BB opened on January 2nd at 278.25.

Bradford & Bingley are already struggling with lower revenue forecasts due to its exposure to the Buy To Let market, and the overall impact of the Credit Crunch in terms of adverse lending markets.

Additionally, the sudden resignation of chief executive Steven Crawshaw and an unexpected £179 million buyout of 23% of BB shares by private equity firm, Texas Pacific Group, have additionally spooked investors.

However, Bradford & Bingley are still expect to post profits of £150 million later this year.

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