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

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

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£300m being withdrawn in three days.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:

& Bingley
failed to see storms on horizon

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