UK bank crisis spreads; Alliance & Leicester shares slump 31%

Alliance & Leicester shares slump 31%

news.bbc.co.uk

Shares in the Alliance & Leicester bank fell by more than 31% on Monday - much of the slump coming in the last half-hour of trading.

However the massive price fall was not thought to reflect big withdrawals from the bank's deposits, BBC business editor Robert Peston said.

Like Northern Rock, mortgages play a key role in A&L's business model.

(visit the link for the full news article)


Related News Links:
uk.biz.yahoo.com
news.sky.com

Related AboveTopSecret.com Discussion Threads:
Northern Rock shares plunge 31%, Paragon Group drops 17%

[edit on 17-9-2007 by infinite]

Alliance & Leicester has released a statement, insisting the bank has not asked for assistance from the Bank of England.

(but refused to comment on future changes)

This hasn't been good news for the markets, some in The City fear the bank run will now spread to A&L after the panic around Northern Rock.

It's very series now.

Alliance & Leicester is a VERY high profile bank in the United Kingdom.

news.bbc.co.uk
(visit the link for the full news article)

Hmmm,the gov has just said they will guarantee all money in Northern Rock,which I hope will calm things down a tad.

This could be a fantastic time to buy shares in the Alliance and Leicester...what do you think Infinite?

Well if those who placed the put option want to do their money, the market must go down by more than 25% before friday... it could happen if this kind of news continue and the run on the banks accelerate... and there's also the FED action of tomorrow that could accelerate the crisis.

Good point Vitchilo,
We all hear alot about this potential engineered economic crash,but its hard to discern what is true-especially when my financial adviser told me late last week that there is absolutely nothing to worry about:

I was worried that the state of the US economy could have a detrimental effect on our economy in the UK and she said

"no no no, nothing to worry about-we are not dependent upon what happens in America or China for that matter,our economy is safe as ususal"

Should I get myself a new financial adviser?
Nervous

reply to post by Silcone Synapse


LOL. Your financial adviser sure believe himself... he's dead wrong. The runs on banks showed that. Let's hope that the FED doesn't do a stupid thing tomorrow and that Bush don't attack Iran... yeah we can only hope... because unless he's impeached before the end of the year, the attack will happen.

UUURGGH Nooo !

I feel ill now,although I kinda knew it anyway.

This is just so typical,just when I get a small amount to invest the whole system goes into turmoil.And its taken me years to get that small amount.Now I gotta think again about what to invest in.

Someone makes a total mega bucket when the economy goes bad-Who is that?
Who should I invest in now?

What a total pain,great more stress just when I thought I had a nice nest egg for my family.

Great...

reply to post by Vitchilo


Hey Vitchilo,
My last meeting really was quite extraordinary-my FA(she) tried to convince me that everything was hunky dory by showing me these very detailed graphs of the global financial markets from the period between 1938 to 2005,with anomalies highlighted.

By anomalies I mean such things as:

End of WWII

Start of Korean War

Vietnam

Cuban Missile Crisis

Iraq war 1

911

Afghanistan

Iraq war 2

These were the markers on the graph in the bank,and these were the precipitators of a dip in the markets of the world.
The thing is,as I told the Lady in the bank,after each oh these dips,there is an apparent steady RISE in the economies of the West,and the big banks.

When I pointed this out in the bank,my financial adviser just looked at me at said,wait for it:

"You're not supposed to notice things like that."

At least shes honest...
Nice to know what they do with our money isn't it?

No joke,I swear to God.

Maybe there's a RISE... but this time it won't until we are a North American Union. They want to destroy our industries, level us to the third world level. Every industry is leaving the west, especially the US for China or India. For the globalists, China is the model they which to implement everywhere in the world. Abortions, police state, slavery, dissents camps, kidnapping for organs (that's why they want biometric data from everyone) and of course a little leadership leading everyone as a god.... and also no second amendment to protect the people against tyranny.

Even UK is sucked into this scheme, Brown is working on selling you to the European Union... they when the globalists are at the top of the world and there's no more country armies, they will turn loose and kill everyone they don't like or oppose their dictatorship... Anyway.

This week will be hard. Good luck. For myself, I'll buy 1 year of food as soon as I can, gold and finally arms.

Originally posted by Silcone Synapse
Hmmm,the gov has just said they will guarantee all money in Northern Rock,which I hope will calm things down a tad.

This isn't a good thing.

The tax payer has to bail out the bank, which the public will not like

interesting development...

It and other small banks – like Bradford & Bingley, whose shares are also down sharply, though not as much – will remain vulnerable to this kind of negative speculation unless and until the Bank of England succeeds in restoring confidence to wholesale money markets.

source

The troll is here again, haha!

Synapse, is your ISA full for this year? Don't bother with stocks till your yearly cash ISA allowance is full, and your wife's allowance too.

Infinite, I noticed HBOS dipped 5% today too (and was mentioned on the BBC news), I hope that is just a sign of the general market as I have a bunch in there

Originally posted by DeepCoverUK
The troll is here again, haha!

Where? *loads gun*

Infinite, I noticed HBOS dipped 5% today too (and was mentioned on the BBC news), I hope that is just a sign of the general market as I have a bunch in there

Holy cow

I missed that one...that is quite a significant drop for a major bank

I think your safest bet in times like this is gold and especially silver. If we go into deflation, which the mortgage meltdown is causing, gold and silver may still loose value but not as much as other asset classes.

There is, however, a lot of good fundamental support for gold and silver now.

If the Fed is forced to cut rates the dollar is going to tank and commodities will likely rally.

Are the major financial players trying to force down the share-prices of NR and other 'smaller' banks in order to wrangle a buy-out takeover on their terms?

BBC news
...The company believes that it has been targeted by hedge funds looking to profit from identifying the next banking victim, which have been short-selling the stock, the BBC understands. "It and other small banks - like Bradford & Bingley - will remain vulnerable to this kind of negative speculation unless and until the Bank of England succeeds in restoring confidence to wholesale money markets."

Guardian Unlimited
Northern Rock could be broken up and sold piecemeal after it emerged that the City's financial regulator blocked a backdoor bid by Lloyds TSB to buy the ailing mortgage bank, City analysts said yesterday..It is understood Lloyds TSB was close to a deal last week to buy Northern Rock at a discount but the deal was blocked by the FSA. The watchdog told the two banks that there should be an open competition for Northern Rock's assets and not a cosy deal behind the scenes.

It's unfortunate that it had to go this far to get noticed. It still doesnt get the attention that it really needs. In a lot of ways, i think its already too late to fix. Hold on, its about to get very rough!

Originally posted by sp00n1
I think your safest bet in times like this is gold and especially silver.

Gordon Brown sold our gold when he was Chancellor

That's our safety net gone.

reply to post by Silcone Synapse



Trying to predict the future by looking at the past is like trying to drive your car while starring in the rear-view mirror, "Gee, the road behind me is straight so the road in front of me must be straight!"

Your FA has major conflicts of interest in commissions generated by all these wonderful trades.

reply to post by infinite



Your country sold it so you can buy it. Maybe after the crash you can start your own mile-wide country?

Although the martial law crackdown will make it hard for natural systems to develop.

[edit on 9/17/2007 by sp00n1]

Originally posted by sp00n1
Your country sold it so you can buy it.

Well, he sold half of it.

Which he now probably regrets.