Скачать или смотреть Billions more wiped off the value of African Bank

Billions more were wiped off the value of African Bank on Thursday - as investors took fright and the share crashed. The share price plunged by an incredible 65% on Wednesday - which was the biggest one-day drop on record. If that wasn't bad enough they plunged by an additional 81 and a half percent today although the number drop is small given how much they were worth. At their height a couple of years ago African Bank shares were worth nearly R40. On Thursday they fell belo 30 cents. Some speculative buyers then clamoured in and they rose. But they closed the day at 57 cents. It's a sad sorry tale about taking risks and betting on an economy that lost its footing.
Unlike other banks African Bank has focused on the low income market - offering people so called unsecured loans that are not backed by assets such as houses. But many have proved unable to pay.
The bank was also accused of reckless lending last year and management has admitted it underestimated some of the risks.
Given today's thump it seems like big investors are pulling out.
And it's still unclear if anyone will put up the cash that the loss making bank needs to survive. Or if the Reserve Bank will step in with a rescue.