Alliance and Leicester shares take a tumble
October 18, 2007
Following the recent turmoil in the financial markets, and the period of unrest suffered by Northern Rock, there has been a sharp drop in the value of Alliance and Leicester shares. Northern Rock saw its share values plummet last week after it was discovered that the bank had gone to the Bank of England for a sizeable loan. Within hours share prices plummeted by 25% and continued to fall.
According to recent reports Alliance and Leicester shares have also taken a battering, and fell by over 30% at the beginning of the week as trading was drawing to a close. Experts have been quick to point out that there have been no major withdrawals from the bank, and the Alliance and Leicester, which is a major mortgage lender, is not as vulnerable as many other lenders, and therefore consumers have nothing to worry about.
However, in separate reports the Alliance and Leicester has been identified as one of the lenders being scrutinized by the Financial Services Authority having being classed as an increased risk. The Bradford and Bingley is another lender that has come under FSA scrutiny after bring branded as being at increased risk, according to reports, and shares for the B&B also fell by around 15%.
Speaking about the Alliance and Leicester one official stated: “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. Like all banks, A&L is suffering from the illiquidity of the inter-bank market.”
Alan Wright
18th October 2007
Recent posts:
- Banks Aim To Claw Their Money Back
- First-time Buyer Numbers Drop
- House Prices Up Again In June
- Some experts expecting house price crash
- Inflation Fall May Not Mean End Of Rate Rises
Related Articles
- Women taking on extra work to cope with mortgage rises A recent report has shown that over the past two years the number of women in the UK with a second job has climbed by
- Sainsbury’s offering low cost home insurance on bundles Supermarket giant Sainsbury's recently announced a special offer on home insurance for homeowners, which could come as relief for many in the light of
- Other banks benefit from Northern Rock misery Following the recent turmoil faced by Northern Rock, where worries savers took over two billion pounds worth of savings out of the bank amidst concerns
- Brits prepared for a lifetime of debt According to a recent report an alarming number of Brits are concerned about their debts, and feel that they will be in debt for most
- Ofcom to get involved with broadband industry summit According to recent reports the communications regulator Ofcom is to get involved in a summit that is to be held with the broadband industry in
Comments
Got something to say?