B&B shares

[andycktm]

Watched the money progamme today and an expert answered the question.
Quote "We've bailed the bank out (tax payer) and given santandare whats left
so what are peoples Bradford and Bingley shares worth".
errr... nothing!!!!
And they say a lot of overseas countries are corrupt :shock:

 

[motownmartin]

I work for Pepsico and every year we get share options at the price they are worth at that particular time, lets say $70, we can't exercise them for at least 3 years but no longer than 10 years, anyway , a year ago i could exercise what share were available to me receiving $5,000 dollars, but no I didn't want them then, I wanted them for this Christmas and guess what, yep, they're worth naff all The shares are worth something but less than the option price we were given.

 

[andycktm]

Just cannot get my head round the fact somebody can recieve the good part of the buisness,while the shareholders get nothing :evil:
The wife has a similar thing with tesco which seems solid enough.Mind you they are the cheapest..............or is that asda,no wait it's morrisons :?

 

[motownmartin]

My Wife is at Asda (Walmart) which were doing uk until this week where they have gone down $5 bang goes the posh holiday

 

[Jake]

Shareholdings are risky - that's what equity is. You are the (part) owner of the company - if it goes to pot, you lose your shirt.

 

[devonwoody]

Yes but Andy said, they gave assets away to the Spanish crowd (and I think they most probably have some very active accountants)
So if B & B shareholders were the owners why did they have it taken away from them if there was no value, Assets were given away freely to another group of shareholders.
I know we didnt want a savings collapse but assets have still been taken from one group and given to another.

 

[RogerM]

Yes but Andy said, they gave assets away to the Spanish crowd (and I think they most probably have some very active accountants)
So if B & B shareholders were the owners why did they have it taken away from them if there was no value, Assets were given away freely to another group of shareholders.
I know we didnt want a savings collapse but assets have still been taken from one group and given to another.

DW - It's not just the assets that have been taken by Santander, it's the liabilities as well. And when liabilities exceed the assets, the equity in the company is zilch. So that's what the shareholders get.

I have also been caught by this one. I worked for HBOS before I retired and was given free shares each year as part of my package. If I sold within 3 years i would have to pay income tax tax and National Insurance on them, but after 3 years they would be tax free apart from any capital gains liability. The average price I was given them at was £9.35, and now they are just 70p. C'est la vie!

 

[devonwoody]

True ~Roger, but Santander got some assets that it hasn't paid for and the government took the mortgages which I assume are the main liabilities?

My own personal gripe about B & B is that for the last 6 months the public were informed there were plenty of assets and it was a good business and a share allocation was not frowned upon but most probably encouraged by the establishment.

 

[andycktm]

I'm sure if wollies debts had been payed by the public,the stores would have been snapped up