Northern rock, stick the knife in.

[Cyberman]

well according to this NRK will be in the black in 2012...

http://www.telegraph.co.uk/money/mai...bcnrock131.xml

Milan.

Yes probably, but only on the back of calling in loans, which at this time is a disastrous policy for the economy, as it is going to also affect businesses and thus jobs. Funding is the life-blood of the economy and our authorities appear to be somewhat 'suicidally' unaware of that fact.
Northern Rock would have paid back its loans eventually, even if not nationalised and the government are only copying what the management bid had planned anyway. Remember also that 14 billion of that requirement was a direct result of the run on the bank, which was avoidable if managed with a measure of competence!!

[Cyberman]

NR simply has no alternative but to scale down morgage book.

True, but this could have been done without resort to nationalisation, and by a slower, or even better, delayed calling in of loans so as not to be so detrimental to the economy at this time.

[AtW]

True, but this could have been done without resort to nationalisation, and by a slower, or even better, delayed calling in of loans so as not to be so detrimental to the economy at this time.

I doubt it was possible - shareholders would not have agreed to effectively run down business in order to repay big loans made by BoE, also if it was not for extra Govt guarantees then NR would have collapsed anyway, in effect nationalisation was a no brainer after Govt undewritten all the downside of the business, it would have been insane to allow hedge funds that shorted NR so hard and ended up owning big chunks of it hoping to blackmail Govt into making nice profit.

[Cyberman]

I doubt it was possible - shareholders would not have agreed to effectively run down business in order to repay big loans made by BoE, also if it was not for extra Govt guarantees then NR would have collapsed anyway, in effect nationalisation was a no brainer after Govt undewritten all the downside of the business, it would have been insane to allow hedge funds that shorted NR so hard and ended up owning big chunks of it hoping to blackmail Govt into making nice profit.

Shareholders would have agreed. I was one of them and we were all for the in-house management bid. Northern Rock would not have collapsed but the government saw a chance to thieve from shareholders and refloat at a massive profit before the next election to fill part of their 'black hole'. Mark my words! Shareholders will have the last laugh on HMG though as this is going to the European Court of Human Rights for compensation.


http://www.uksa.org.uk/NorthernRock.htm

[AtW]

Northern Rock would not have collapsed but the government saw a chance to thieve from shareholders and refloat at a massive profit

Rubbish. Gordon Brown would have paid billions if he would never hear of NR again, this effectively made it clear to a lot of people what a fraud his so-called economic competence is.

NR is a bust bank - and calling it a bank gives undeserved credit to what they were doing.

Shareholders won't get much out of it, you can be sure of that. Small shareholders have my sympathies, but big hedge funds that were shorting NR very hard days before it finally collapsed are in a big way responsible for the collapse.

[Cyberman]

Rubbish. Gordon Brown would have paid billions if he would never hear of NR again, this effectively made it clear to a lot of people what a fraud his so-called economic competence is.

NR is a bust bank - and calling it a bank gives undeserved credit to what they were doing.

Shareholders won't get much out of it, you can be sure of that. Small shareholders have my sympathies, but big hedge funds that were shorting NR very hard days before it finally collapsed are in a big way responsible for the collapse.

You're wrong. Northern Rock is not bust and will be refloated...... wait and see!!
You, like so many others have fallen for the BBC/Telegraph propaganda that the credit crunch/liquidity crisis was effectively Northern Rock's fault. The fact that we now have so many other banks screaming for liquidity six months down the line is surely evidence to the contrary.

[AtW]

You're wrong. Northern Rock is not bust and will be refloated...... wait and see!!

In 2-3 years time it will be shadow of itself - what will remain from morgage portfolio might not even likely to be taken on by other people, because those who remain on their books won't be able to get a new morgage anywhere else.

You, like so many others have fallen for the BBC/Telegraph propaganda that the credit crunch/liquidity crisis was effectively Northern Rock's fault.

NR is not guilty of causing credit crunch - they are guilty of exposing themselves so foolishly by making assumption that capital markets will always be available at cheap price. Additionally NR committed a major offence in my view by getting into subprime segment of UK market, by giving out 125% morgages and cheaps loans secured on houses - they are guilty of driving the property bubble in the UK, for that alone all top management should have been treated the same way as Enron managers were - very long jail sentences.

[Diver]

Northern rock ex boss still getting £4,000 a month salary and £750,000 golden handshake plus £2,500,000 pension.

Linky

[Cyberman]

Northern rock ex boss still getting £4,000 a month salary and £750,000 golden handshake plus £2,500,000 pension.

Linky

Exactly!! If Northern Rock was bust he would not be getting that payment. Atw just cannot see the obvious.

[AtW]

Exactly!! If Northern Rock was bust he would not be getting that payment. Atw just cannot see the obvious.

He is getting this ridiculous payment because top managers have contracts that contain rewards for failure - have you heard of WorldCom? They effectively gone bust but the CEO awarded himself ridiculous amount of money - the guy was found guilty of fraud - he got 25 years in prison, that's the kind of response that should have been done rather than awarding these money. If I was that new CEO appointed by the Govt I'd tear down contract and pay not a pence to that guy - let him sue you and get all the juicy details on public what decisions he made there and how they affected the company.