More people need to question ......

[AtW]

Atw, you just show by those comments that you do not know how the system works.

I know how the system works. I also know how it should work.

Nothern Rock used shady offshore company that sold them morgages - NR was contracturally required to buy this toxic crap from that company, so NR had to have a flow of funding. It is that thing that killed them once funding dried up - they could not just fire salesforce and act as a head office for collecting morgage payments and dealing with default, they were bust because they HAD TO buy those morgages even if funding disappeared. Just what kind of retard would sign up to such a contract? Those guys should be in jail yet they bogged off with millions in hand shakes.

B&B seems a bit different though I'd be suprised if they don't have even dodgier morgages than NR - I mean they "cornered" market for self-certified morgages, ffs, bankers themselves called tham "liars loans", it's crazy that they were allowed to do these things, just wtf FSA and BoE were doing?

Before slagging me off, I suggest that you firstly educate yourself.

I've got 3 degrees in finance, business and real estate. But in reality even if I was a caveman then my knowledge of economics would have been still much greater than yours.

[Cyberman]

I know how the system works. I also know how it should work.

Nothern Rock used shady offshore company that sold them morgages - NR was contracturally required to buy this toxic crap from that company, so NR had to have a flow of funding. It is that thing that killed them once funding dried up - they could not just fire salesforce and act as a head office for collecting morgage payments and dealing with default, they were bust because they HAD TO buy those morgages even if funding disappeared. Just what kind of retard would sign up to such a contract? Those guys should be in jail yet they bogged off with millions in hand shakes.

B&B seems a bit different though I'd be suprised if they don't have even dodgier morgages than NR - I mean they "cornered" market for self-certified morgages, ffs, bankers themselves called tham "liars loans", it's crazy that they were allowed to do these things, just wtf FSA and BoE were doing?



I've got 3 degrees in finance, business and real estate. But in reality even if I was a caveman then my knowledge of economics would have been still much greater than yours.

So with all of your wonderful wisdom, AtW, just explain why HMG nationalised the Rock when there were FOUR offers on the table.

[AtW]

So with all of your wonderful wisdom, AtW, just explain why HMG nationalised the Rock when there were FOUR offers on the table.

The only viable offer (and I am glad Govt did not use it) was when LTSB asked for £20 bln loan from BoE to buy NR before queues - thankfull this did not work out as I bank with LTSB and extremely pleased they did not do it. I now hope they will reverse that stupid HBOS buy too.

All the other offers AFTER NR collapsed were basically about private companies using Govt money to make profits for themselves - none of them had any money to purchase, they all wanted to keep BoE loans. In all probability they would have failed before end of this year so Brown had no choice but to nationalise it.

Personally I'd say what they should have done is this:

1) jail NR management including those who recently left the company and those advisors who devised those contracts with Granite thingy
2) take all saver accounts and either sell them separately like they did with B&B or move over to any other bank while guaranteeing them 100% with BoE money
3) sell morgages that NR had on auction - whatever the price they go.
4) close NR down, destroy their office with bulldozers and put a huge fark off stone with a single word on it: GREED.
5) if any of the jailed people in #1 are still alive then make sure they are on a permanent prison rota to hand out soaps in the showers.

HTH