B&B appoints new chief executive

by Gill Montia

Story link: B&B appoints new chief executive

Bradford & Bingley (B&B) is appointing Richard Pym, who retired last summer from 15 years at the helm of Alliance & Leicester, as its new chief executive.

Mr Pym will be replacing Steven Crawshaw who resigned in June on grounds of ill health, as the embattled buy-to-let lender struggled to raise £400 million in capital and reported mounting repayment arrears.

The bank lost credibility by announcing a rights issue in June, only weeks after denying reports that it needed to raise funds.

The lender was then forced to revise its plans, when its credit rating was downgraded by Moody’s, prompting US private equity firm, Texas Pacific Group, to abandon plans for a £179 million injection of cash into the business.

B&B’s institutional shareholders, which include Standard Life, M&G, Legal & General and Insight Investment, have since taken up around 20% of the new stock but the bank’s retail shareholders have largely shunned the fundraising.