The Rock WAS victimised

[DiscoStu]

Not true. Many other banks were also offering 125% loans. Plus, the loans were not the issue, which was in fact LIQUIDITY, and the run caused by leaks by HMG and Robert Peston, which removed approx. 14 Billion pounds of that liquidity.

Thr problem was Northern Rock's reliance on money markets to fund its deposits, the crappy quality of it's mortgage book and willingness to lend more than other lenders.

Sorry CyberTory, it was a crappily run bank whose over-reliance on money markets would always make it vulnerable.

[Cyberman]

Thr problem was Northern Rock's reliance on money markets to fund its deposits, the crappy quality of it's mortgage book and willingness to lend more than other lenders.

Sorry CyberTory, it was a crappily run bank whose over-reliance on money markets would always make it vulnerable.

.. but the fact is that all banks have been reliant on money markets, as is common practice, especially HBOS, RBS, Loyds and B&B, all of whom I predicted to fail also due to lack of liquidity. HBOS still need to roll over approx. 100 Billion in loans within the next year.

[DiscoStu]

.. but the fact is that all banks have been reliant on money markets, as is common practice, especially HBOS, RBS, Loyds and B&B, all of whom I predicted to fail also due to lack of liquidity. HBOS still need to roll over approx. 100 Billion in loans within the next year.

Take a look at the graph. Northern cRock required 61% funding from the wholesale markets for its mortgage book. In next place, HBOS was at 33%. The fact remains that NR was almost twice as reliant in relative terms as the other banks on funding from the wholesale market. Not exactly a good place to be when the market dries up.

[ace00]

I rest my case....

Bagpuss thinks I'm funny.

[tim123]

http://news.bbc.co.uk/2/hi/business/7796329.stm

Other banks needed just as much money and will need more in due course. It's a real scandal the way that Rock shareholders have been robbed and yet HBOS, LLoyds can trade on. Roll on the 12th of January and the Judicial review.

Just because the other banks weren't privatised, doesn't mean that their shareholders haven't lost money.

RBS and HBOS are down 90%.

The idea that Rock shareholders should receive more than around 10% of their pre-crash value is an unsustainable financial nonsense.

tim

[Cyberman]

Just because the other banks weren't privatised, doesn't mean that their shareholders haven't lost money.

RBS and HBOS are down 90%.

The idea that Rock shareholders should receive more than around 10% of their pre-crash value is an unsustainable financial nonsense.

tim

Darling said that the Rock was nationalised because the deals offered by Branson etc did not offer enough for the taxpayer and it was not right that Branson should make Billions on the deal. Therefore, it is obvious that HMG expect to make money on the Rock on refloating, and this was theft. Roll on January 12th !!!

[tim123]

Darling said that the Rock was nationalised because the deals offered by Branson etc did not offer enough for the taxpayer and it was not right that Branson should make Billions on the deal. Therefore, it is obvious that HMG expect to make money on the Rock on refloating, and this was theft. Roll on January 12th !!!

AIUI HMG agreed to pay "fair value" for the shares, based upon what the likes of Branson was offering.

This isn't theft, it's a disagreement about the price. And whilst I CBA to look up the actual figures, the two parties are light years apart, with one claiming a value of perhaps 350p and the other 20p.

As per my previous post, 20p is the one that seem right to me.

350 is taking the piss.

tim

[Cyberman]

AIUI HMG agreed to pay "fair value" for the shares, based upon what the likes of Branson was offering.

This isn't theft, it's a disagreement about the price. And whilst I CBA to look up the actual figures, the two parties are light years apart, with one claiming a value of perhaps 350p and the other 20p.

As per my previous post, 20p is the one that seem right to me.

350 is taking the piss.

tim

You obviously are not aware that HMG have stated in February 2008 that they want NRK valued as if it were bankrupt.... ie: as if the government loans had not been made.
Lloyds had offered 4 quid a share just before HMG leaked their 'moral hazard' story to the BBC via Peston, which caused the run.
I don't see how offering shareholders zero equates with the way that the other banks have been treated.
Personally, I'd be happy if HMG just let us keep our shares and denationalise. After all, nationalisation was a mistake of horrendous proportions and has reduced liquidity in the mortgage market by up to 50 Billion pounds and exacerbated the problems in the money markets.

Anyway, the Judicial Review on 12th/13th Jan will be very interesting !!

[Cyberman]

Demonstrations start on 12th January !!

http://www.uksa.org.uk/NorthernRock_Update_47.pdf

[Platypus]

I thought you meant the wrestler turned film-actor! Being victimised by Gian Haystacks or The Undertaker perhaps!

Your version is much more interesting !