MPs claim Bradford & Bingley chairman mislead shareholders

Richard Pym, the chairman of Bradford and Bingley has been told by MPs that he made misleading confident statements which ultimately devastated shareholders.

John McFall of the Treasury Select Committee added that Pym was similar to the weather forecaster who failed to realise there was a hurricane approaching the UK, hours before it ransacked the country The Times reported.

McFall said: 'Is it fair to describe yourself as the financial services industry's Michael Fish?'

'You were struck down by a storm and a hurricane that took everything away' he added.

The reference to Michael Fish, a BBC weather forecaster, who dismissed claims that a hurricane was approaching the UK, hours before it demolished southern parts of Britain.

Pym said: 'I can sympathise with people who say I may have been misleading.'

Two days after issuing a confidence statement Pym agreed with the Financial Services Authority's claims that the bank was too weak to survive without a rescue plan.

However Pym argues that the bank was in good shape when the statement was made, but due to the announced takeover of HBOS by Lloyds TSB, B&B was the last mortgage bank left which resulted in lost confidence.

Pym said: 'Poor little B&B was the last mortgage bank standing and was always going to be the centre of media attention, and there was a loss of [depositor] confidence.'

He added that savers started to withdraw money in high volumes, with over £300m being withdrawn in three days.

Further reading:

Bradford & Bingley chairman Richard Pym failed to see storms on horizon