Pound Falls on U.K. Subprime Losses

The British pound fell against the dollar and euro after news reports said Bradford & Bingley Plc, the U.K.'s biggest mortgage lender to landlords, needs to raise money from shareholders and profit will be lower than expected.

The currency declined the most in two weeks against the dollar after Bradford & Bingley said chief executive Steven Crawshaw will step down just weeks after the lender announced a 300 million pound ($592 million) rights issue aimed at bolstering its balance sheet. The bank said Crawshaw left because of ``a serious cardiovascular condition.''

The pound declined to $1.9737 against the dollar as of 9:14 a.m. in Tokyo, from $1.9823 in New York late last week. It also declined to 78.81 pence per euro from 78.46. It weakened to 208.23 yen from 209.16 yen.

TradingEconomics.com, Bloomberg
6/1/2008 7:01:35 PM