Reply to: Northern rock, stick the knife in.

[Cyberman]

Cyberman
How much did/do you have in NR shares ? will understand if you tell me to MMOFB

I have a few thousand, but my average price paid was quite low, so compensation through the European Court of Human Rights will probably make me a good profit.... Railtrack shareholders got 2.50 pounds a share through the High Court and could not go to the ECOHR as HMG conniving denied that they are nationalised !

HMG will probably refloat at approximately 4-5 pounds a share just before the next election to further compound their act of theft.

[EternalOptimist]

Cyberman
How much did/do you have in NR shares ? will understand if you tell me to MMOFB

[Cyberman]

blaster, as you know, cashflow is the king

if you overtrade and expose yourself to cashflow problems, then as you know, your profitable business will not be equal to obligations and will be finanically strangled and go bust

the key is to not grow too fast and keep a cushion of wonga, but everybody knows that and applies the rule to their private and business lives

Milan.

I couldn't agree more for non-bank businesses, however we are referring to a bank here, and under normal conditions money is available in the money markets at market rate, and the failure of the money market is not due to the Rock. With the failure of the markets the the Bank of England and other central banks are there as the 'Lender of last resort' specifically for these extreme situations, but the BofE initially and ineptly refused to lend to the Rock causing the run that lost over 10 billion in deposit liquidity and thus increasing the amount the Rock needed to borrow by that amount!!
HBOS requires over 100 Billion pounds from the money markets within the next year so could well go the same way as Northern Rock, but I bet the BofE lends this time! I am pretty sure HBOS cannot be accused of overtrading so that is really a red-herring in this extreme crisis period.

[BlasterBates]

Yes too true milan.

Who has filled their granaries in preparation of the 7 years of famine?

[milanbenes]

blaster, as you know, cashflow is the king

if you overtrade and expose yourself to cashflow problems, then as you know, your profitable business will not be equal to obligations and will be finanically strangled and go bust

the key is to not grow too fast and keep a cushion of wonga, but everybody knows that and applies the rule to their private and business lives

Milan.

[Dow Jones]

Thank God for some sense Cyberman

Adam Applegarth did not commit fraud and with liquidity the Rock is actually a very profitable company(450 million before tax even after the current BofE inspired debacle). All he did was to put all his eggs in one basket and perhaps grew Northern Rock too quickly, in hindsight.
The FSA obviously did not think that his strategy was wrong, and also did not envisage the money markets drying up. May I also add that HBOS relies on 31% of its borrowing from the money markets and it has much bigger liabilities that require funding coming up in the next 12 months than the Rock ever had!! You could well soon be saying that the Chairman of HBOS is a fraudster, based on your logic.

At last some sense! Posts (sorry: rants) from you-know-who on financial matters are the scourge of CUK.
As a 'stakeholder' in NR (I have a large mortgage with them) I can vouch that I have had no problems during the last 5 years I have been with them. Fastest turnaround (2 weeks) for re-mortgaging with minimum fuss and paperwork by the customer (all done by IFAs and their staff). And another thing: talking about people that 'couldn't get a mortgage anywhere' (according to you-know-who): Average LTV for NR is about 60%, compared to 70-80% for the rest of the mortgage sector - moron!!

[BlasterBates]

In fact most companies that go bankrupt are profitable, a little known fact until you do a course in accountancy. I remember it well because the lecturer repeated every week, "More companies go bust through overtrading than any other reason".

Northern Rock went bust through overtrading.

[threaded]

And now you can

http://news.bbc.co.uk/1/hi/scotland/7322978.stm

Unless this is an April Fool, of course

The Russians did lots of research into the medicinal use of bacteriophages, so I suspect it is not an April fools.

But, bacteriophages are really quite site specific, so the concept of manufacturing otherwise sterile stiches and bandages with the correct strains is flawed.

Which is what stumped the Russians in the end.

[Cyberman]

But they could at least offer something comeptitive - they're not even close at the moment.

I hadn't realized that it's not allowed to be sky high rates, though.

A month or so back they were offering the highest rates, but since nationalisation those rates have been cut. If they were still private they would be in a better position to offer those rates but now they are seen as totally HMG backed and thus are not allowed to compete. Another own goal by HMG perhaps!!

[Chantho]

I look forward to being able to go into hospital with a broken arm and leave without contracting MRSA!

And now you can

http://news.bbc.co.uk/1/hi/scotland/7322978.stm

Unless this is an April Fool, of course

[EternalOptimist]

I look forward to being able to go into hospital with a broken arm and leave without contracting MRSA!

Then the lazy bitches can have a house!

Hey doggy
you calling my missus a lazy bitch ?

er..ok , it's a fair cop

[Churchill]

I look forward to the day when nurses feel they can afford to buy their own place

I look forward to being able to go into hospital with a broken arm and leave without contracting MRSA!

Then the lazy bitches can have a house!

[TheFaQQer]

Unfortunately, due to EU competition laws they are not allowed to offer sky high interest rates because other banks may sue over unfair competition due to state aid. What is so ironic that those other banks may themselves also need major state aid for liquidity purposes before long. Rumour has it that the BofE lending is already at 15 Billion, excluding the Rock.

But they could at least offer something comeptitive - they're not even close at the moment.

I hadn't realized that it's not allowed to be sky high rates, though.

[Cyberman]

They have two alternatives.

1 - Scale down the mortgage book

2 - Increase interest rates on long-term deposits

These are not mutally exclusive, yet they are only focussing on the first.

Unfortunately, due to EU competition laws they are not allowed to offer sky high interest rates because other banks may sue over unfair competition due to state aid. What is so ironic that those other banks may themselves also need major state aid for liquidity purposes before long. Rumour has it that the BofE lending is already at 15 Billion, excluding the Rock.

[TheFaQQer]

NR simply has no alternative but to scale down morgage book.

They have two alternatives.

1 - Scale down the mortgage book

2 - Increase interest rates on long-term deposits

These are not mutally exclusive, yet they are only focussing on the first.