Newly appointed Bradford & Bingley chief executive Richard Pym has the task of stabilising the lender as it tries to regain ground in the wake of the credit crunch.
Pym, who retired as Alliance & Leicester group chief executive in July 2007, says he will pay special attention to B&B’s deal with GMAC for its books of underperforming loans.
He says: “Obviously, there are some specialist loans which have got high arrears at the moment but the core lending book – the prime buy-to-let book – is very solid.”
The appointment came as B&B shareholders subscribed to buy nearly 28 per cent of shares in its 400m rights issue.
Underwriters UBS and Citigroup now have to place the remaining 597 million shares worth over 200m by the end of the week. Six of the UK’s biggest clearing banks have agreed to back the underwriters.
Major shareholders Legal & General, Standard Life, M&G and Insight Investment are understood to have taken up their full allocation. The rights issue was priced at 55p and B&B shares were trading just above that level as subscriptions closed on Friday.