The Rock WAS victimised

[TykeMerc]

Brillopad, this just shows your ignorance, because the Rock did not go bankrupt and their problems had nothing whatever to do with subprime lending.

A reasonable definition of bankruptcy is lacking the money to meet the liabilities of the business. NR was £14 Billion short so it's not irrational to call them bankrupt.

You took a risk investing in shares, on this occasion you invested badly, you lost because you chose to speculate on a company with a bad business model.

[minestrone]

A reasonable definition of bankruptcy is lacking the money to meet the liabilities of the business. NR was £14 Billion short so it's not irrational to call them bankrupt.

You took a risk investing in shares, on this occasion you invested badly, you lost because you chose to speculate on a company with a bad business model.

The bank could have been sold and the share holders got something, surprising when the goverment steps in, gets a bank and does not have to pay anything for it.

[AtW]

A reasonable definition of bankruptcy is lacking the money to meet the liabilities of the business.

Very few banks (if at all) keep more than a fraction of cash they hold as customer savings in cash form ready to be paid out at any time - morgages are long term assets and you can't easily sell them (not since mid last year) to get cash.

Essentially NR had liquidity problem in a short term, but fundamentally it was bankrupt as the "assets" that they held were subprime and value of such assets will fall.

IMO, NR should have been put into liquidation with Govt guarantying all savers 100% while administrators sort out the rest of the business (sell morgages at knowndown prices).

The Govt just did not want to take immediate fairly large loss, so they opted but a much bigger one but some years down the line. That's why it is necessary for politicians, big bosses etc to suffer consequences of their decision even if they are out of the job many years - often it takes 10-15 years to be sure whether some decision was right or wrong, if it's right they should get extra bonus, and if it's very wrong they should go to jail. If they don't like such responsibility they can become IT contractors...

[Bagpuss]

I really cannot believe that an intelligent person honestly believes that bunch of nonsense

tim

and you are right

[BrilloPad]

Brillopad, this just shows your ignorance, because the Rock did not go bankrupt and their problems had nothing whatever to do with subprime lending.

Is your house price still going up?

[Cyberman]

A reasonable definition of bankruptcy is lacking the money to meet the liabilities of the business. NR was £14 Billion short so it's not irrational to call them bankrupt.

You took a risk investing in shares, on this occasion you invested badly, you lost because you chose to speculate on a company with a bad business model.

Then according to your analysis, HBOS, Lloyds, RBS etc are all bankrupt. Strange that they are still trading. Still, lets let the courts decide.

[Cyberman]

Very few banks (if at all) keep more than a fraction of cash they hold as customer savings in cash form ready to be paid out at any time - morgages are long term assets and you can't easily sell them (not since mid last year) to get cash.

Essentially NR had liquidity problem in a short term, but fundamentally it was bankrupt as the "assets" that they held were subprime and value of such assets will fall.

IMO, NR should have been put into liquidation with Govt guarantying all savers 100% while administrators sort out the rest of the business (sell morgages at knowndown prices).

The Govt just did not want to take immediate fairly large loss, so they opted but a much bigger one but some years down the line. That's why it is necessary for politicians, big bosses etc to suffer consequences of their decision even if they are out of the job many years - often it takes 10-15 years to be sure whether some decision was right or wrong, if it's right they should get extra bonus, and if it's very wrong they should go to jail. If they don't like such responsibility they can become IT contractors...

More cobblers from AtW. Northern Rock were making profits right up to the day moneymarkets seized up. Subprime levels are debatable but we all know that other banks had billions of US-subprime while the Rock had none. Subprime only exists once people cannot afford to keep paying their mortgages and the value of the mortgage is greater than the property value, so there is no way that this affected the Rock much at the time of nationalisation almost a year ago. It may exist in the future but that is not my concern. I want fair value for my shares at the time of nationalisation and prior to the run which was caused by HMG to artificially deflate the SP. The courts will decide, not HMG !!

[BrilloPad]

More cobblers from AtW. Northern Rock were making profits right up to the day moneymarkets seized up. Subprime levels are debatable but we all know that other banks had billions of US-subprime while the Rock had none. Subprime only exists once people cannot afford to keep paying their mortgages and the value of the mortgage is greater than the property value, so there is no way that this affected the Rock much at the time of nationalisation almost a year ago. It may exist in the future but that is not my concern. I want fair value for my shares at the time of nationalisation and prior to the run which was caused by HMG to artificially deflate the SP. The courts will decide, not HMG !!

Which is zero.

[Cyberman]

Which is zero.

That's your biased opinion, but anyway the courts will decide, and I will have to accept the outcome, just as HMG will have to.

[BrilloPad]

That's your biased opinion, but anyway the courts will decide, and I will have to accept the outcome, just as HMG will have to.

Why am I biased?