That’s terrible if there are false rumours going around. I don’t condone that at all. However, to be devil’s advocate here, in order to avoid rumours spreading about your bank’s solvency and trustworthiness you need to show that 1) you are good at managing the customers’ deposits and 2) you need to display solid financial foundations.
Metro is fresh from an accounting scandal which saw them “mis-classify” riskier loans as safer ones. They are meant to be the answer to the 2008 fallout and this suggests otherwise. It also calls into question what else has been getting “mis-classified”.
Their financial foundations have crumbled. Where a year ago they were approaching a £4bn valuation, hitting marginal profitability and on the up, they have slumped to a £500m valuation, future profitability in extreme doubt, branch rollout plans in doubt, whole business model in doubt and with them about to raise over £300m on such a low valuation it is only common sense to question whether their business is even viable.
They have announced themselves that many big customers (think ‘over 85k’ where they are not protected from Metro going bankrupt) have pulled their business and gone elsewhere.
So what are they going to be left with? … @danny jamming up the coin machine with his coppers and people just turning up for the free dog biscuits.