Northern Rock at it again...

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rootsnall replied

2 November 2007, 08:14
It's just been on Radio 4, the government has got itself in a corner on this one, the only potential buyers want the government to continue pouring money in. I think the BoE governor wanted to let it go under and was probably right but it risked bringing down the whole debt riddled deck of cards ( ie. the UK econmony ) down with it. Interesting times ahead me thinks !
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Iron Condor replied

2 November 2007, 07:29
Northern Rock is making money for taxpayers

http://www.ft.com/cms/s/0/d65ada1e-8...0779fd2ac.html
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AtW replied

1 November 2007, 23:30
When banking system crumbles everything turns into tulips. What happens now is that effectively BoE gives money indirectly to other stronger banks by allowing savers from NR to withdraw their money and put them into other banks - so in effect this improves liquidity of those big banks who have got their own share of problems, at least this way they get cheap savers money at the expense of NR that pays punitive BoE rate.

IMO this is the right decision - better have NR slowly die than have collapse of the banking system, the main problem here is what to do with people who took morgages from NR, suddenly BoE becomes owners of a lot of houses that are on balance sheet, so now rate making decisions might be influenced by the fact that they have got assets that might be devalued if house prices finally drop.

Crap situation, it should really cost job to the Govt of BoE.
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miffy replied

1 November 2007, 23:16
Interesting read.

I really don't agree with pouring tax payers money into it though.

I want my £730 back please. Can I withdraw it at any branch or do I need to do it online?
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AtW replied

1 November 2007, 21:33
Sounds like the Nu Liebor Govt will sort out social housing for a lot of people and get lots of votes in progress.
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DimPrawn replied

1 November 2007, 21:29
What's the odd £20bn anyways?

I'm sure Darling and Brown have it all under control. Move along, nothing to see here.
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Sockpuppet started a topic Northern Rock at it again...

1 November 2007, 19:48
Northern Rock at it again...

http://news.bbc.co.uk/1/hi/business/7073556.stm

Come on!

We have an exposure of £730 each if that thing goes tits up.

They wanted £650 off me just to VALUE a house. Let the little tulips go bang. Sell the mortgages to get the money back the govt has put in and savers then let the city types go bust.

Why is the govt proping up a bank that has no-one but itself to blame.
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