What does Bradford & Bingley’s £300m rights issue mean for banks?

B&B is the latest UK bank to whip out the begging bowl. Its business model worked fine when house prices were rising - but this is no longer the case...

Bradford & Bingley (BB) has become the latest UK bank to whip out the begging bowl, but don't expect it to be the last.

Following large rights issues from Royal Bank of Scotland and HBoS last month, the Yorkshire-based bank said today that it would sell around £300m of new shares to shareholders in order to shore up its balance sheet.

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Jody Clarke

Jody studied at the University of Limerick and was a senior writer for MoneyWeek. Jody is experienced in interviewing, for example digging into the lives of an ex-M15 agent and quirky business owners who have made millions. Jody’s other areas of expertise include advice on funds, stocks and house prices.