Inquiry call into bank chairman's comments

AN action group representing Bradford & Bingley shareholders is to ask the Financial Services Authority to investigate comments made by the bank's chairman prior to its nationalisation.
By The Newsroom
Published 11th Jul 2010, 23:57 BST
Updated 11th Jul 2010, 23:57 BST

The group confirmed yesterday it is preparing a letter to Margaret Cole, the FSA's head of enforcement, about the statement to the City by Richard Pym on September 25, 2008.

In the statement, Mr Pym, then chief executive, said the bank was "strongly capitalised" and "fit for purpose going forward". The bank's shares were taken into public ownership on September 29, 2008.

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Last week, independent valuer Peter Clokey, of PricewaterhouseCoopers, said the 935,000 shareholders should not receive any compensation for their losses.

In his report, Mr Clokey said Bradford & Bingley had asked for further access to the Bank of England's special liquidity scheme on September 22, 2008, to cover a withdrawal of retail deposits. He said the Bank refused, citing a ratings agency downgrade on bonds offered as collateral.

A spokesman for Mr Pym told the Sunday Times that he stood by his statement and insisted the comments were accurate at the time they were made.

Related topics:Bank of EnglandPricewaterhouseCoopersBradford