TD Waterhouse helps customers to capitalise on US market volatility

Angus Rigby, Chief Executive Officer, TD Waterhouse comments: Last week's news is still resonating with TD Waterhouse customers as trading volumes have propelled to dizzying heights, leaping 64% since last week. TD Waterhouse customers' feverish selling activity has matched buying activity this week with a 73% increase in top ten sales.

Customers have been making the most of their ability to trade directly on the US markets through TD Waterhouse and as a result, American insurer AIG has now weeded its way into our top ten trades this week for the first time. Unsurprisingly the US government's rescue of the insurance giant has got our customers' pulses racing. AIG revealed on Wednesday that it had accepted a federal bailout that saw the US government lend $85 billion in return for an 80% equity stake. Nevertheless, the newly appointed CEO Edward M. Liddy has reported that AIG plans to pay off the loan with a quick sale of its non-core businesses.

AIG are also the backers of the popular ETF Agricultural Commodities Securities, which are trackers of various agricultural commodities such as wheat and coffee and were briefly suspended last week amid confusion of AIG's ability to honour their commitments.

Aviva is another insurer that has made its first appearance in the top ten sells this week. The sale of the Aviva stock indicates that our customers are anticipating that the insurer might suffer the same fate as AIG and are cautiously letting go of their stock in these turbulent times.

And finally, customers who have bought into Bradford & Bingley will be waiting with interest to see how today's news that the bank is to cut 370 jobs and move its mortgage processing centre will affect the bank's share price. Bradford & Bingley is one of the shares included in the Financial Services Authority's (FSA's) ban on short selling and has had a turbulent year following a less than successful rights issue.

There has been concern about the bank's exposure to the mortgage market, most notably through its own mortgages as well as the mortgage books acquired from GMAC-RFC - part of a five tranche deal agreed back in December 2006. The chief executive, Richard Pym, says the job cull and move of its mortgage processing centre from Hertfordshire to Yorkshire, while ‘regrettable', will save the bank £15 million a year.