Bradford & Bingley, which is in the middle of a rights-issue roadshow, will stun the City this week with a profit warning and the departure of its embattled chief executive, Steven Crawshaw.
Rod Kent, the bank’s chairman, will take over executive control of the bank, which has a network of 200 branches, while it looks for a replacement chief executive. It is understood that Crawshaw, 47, has been unwell for some time and has been looking to step down.
The profit warning is expected to be contained within the bank’s rights-issue document that will be sent to investors in the next five days.
Profits for this financial year will be significantly lower than analysts’ forecasts.
The bank has been hit hard by mounting arrears from borrowers and squeezed margins.
It will announce today that private equity firm Texas Pacific Group will invest £150m in buying a 20% stake.
The mortgage bank was approached by TPG after launching its controversial £300m rights issue aimed at repairing its battered balance sheet.
Sunday Times, Sunday Telegraph, Financial Times, Daily Telegraph