NRock Leak Memo

[AtW]

while Rock is forecast to return to remarkably healthy profitability

This will be interesting to see how they achieve that given £30 bln of BoE debt charged at penal rates, while they get lower rates from their morgages while suffering inevitable high rate of default on their subprime borrowers who will have negative equity.

[Maxamus]

http://ftalphaville.ft.com/blog/2007...ng-memorandum/

Sources indicated to FT Alphaville that under the various structures, while Rock is forecast to return to remarkably healthy profitability, existing investors will be wiped out and the Bank of England may be left holding billions of Rock debt through until 2010.