Reply to: HBOS may require Central Bank funding

[Cyberman]

Remember, it's only a loan if there's the remotest possibility of it being paid back.

You can apply that reasoning to the heavily sub-prime indebted banks that are getting the loans today. Northern Rock had a good quality 100 billion pound mortgage book and negligible subprime debt at the time of nationalisation and had already paid back 3 billion pounds and there was never any danger of loans not being repaid. In fact, reports only last month stated that the loans are very likely to be repaid in full, plus interest by the end of 2009!!

In addition, over 10 billion pounds of the money owed by Northern Rock was due to the BofE/BBC instigated bank run due to malicious rumours.

[Churchill]

http://www.ft.com/cms/s/0/71aeb98a-0...0779fd2ac.html

Here we go!! An announcement will be made today of at least 50 Billion pounds being lent to the liquidity-strapped banks, against equity. This will show the massive hypocrisy that there was during the problems with Northern Rock who only had the misfortune to be the first bank to go to the BofE for a LOAN against its mortgage book.
Who remembers the media lies about taxpayers each paying 2,000 pounds to bail out the ROCK, when in fact the funds were purely loans, the same as is being announced by Darling today !!??

Remember, it's only a loan if there's the remotest possibility of it being paid back.

[Cyberman]

It would be a different story had it been left to go to the wall. However, the Gov't because of the incomptence shown by Brown/Darling/BoE/FSA and the repercussions that would cause, stepped in to its rescue. As with any nationalisation, the Gov't has to provide compensation to its rightful owners. They did that in the old days with British Rail and with the National Coal Board. They also did that when they took over Railtrack from the private sector. Eventually it's a case of how much, NOT IF they cough up.
Another disgraceful chapter in the mismanagement of the economy by Zanu-NL (as someone here called them)

http://www.ft.com/cms/s/0/71aeb98a-0...0779fd2ac.html

Here we go!! An announcement will be made today of at least 50 Billion pounds being lent to the liquidity-strapped banks, against equity. This will show the massive hypocrisy that there was during the problems with Northern Rock who only had the misfortune to be the first bank to go to the BofE for a LOAN against its mortgage book.
Who remembers the media lies about taxpayers each paying 2,000 pounds to bail out the ROCK, when in fact the funds were purely loans, the same as is being announced by Darling today !!??

[Cyberman]

How many shares were there? how much would £5 per share cost the taxpayer?

Bearing in mind that New Lie will probably float Northern Rock at a fiver a share just before the election (which I firmly believe was their ulterior motive in nationalising the company and thus stealing it from the shareholders), there will be no net cost to the taxpayer.

[BrilloPad]

Railtrack shareholders actually took HMG to the High Court because the government initially refused compensation after manipulating it into bankruptcy. They won 2.50 pounds a share. Northern Rock are probably going a step further to the European Court of Human Rights for approx 4-5 pounds a share.

How many shares were there? how much would £5 per share cost the taxpayer?

[Cyberman]

It would be a different story had it been left to go to the wall. However, the Gov't because of the incomptence shown by Brown/Darling/BoE/FSA and the repercussions that would cause, stepped in to its rescue. As with any nationalisation, the Gov't has to provide compensation to its rightful owners. They did that in the old days with British Rail and with the National Coal Board. They also did that when they took over Railtrack from the private sector. Eventually it's a case of how much, NOT IF they cough up.
Another disgraceful chapter in the mismanagement of the economy by Zanu-NL (as someone here called them)

Railtrack shareholders actually took HMG to the High Court because the government initially refused compensation after manipulating it into bankruptcy. They won 2.50 pounds a share. Northern Rock are probably going a step further to the European Court of Human Rights for approx 4-5 pounds a share.

[Dow Jones]

Disagree

It would be a different story had it been left to go to the wall. However, the Gov't because of the incomptence shown by Brown/Darling/BoE/FSA and the repercussions that would cause, stepped in to its rescue. As with any nationalisation, the Gov't has to provide compensation to its rightful owners. They did that in the old days with British Rail and with the National Coal Board. They also did that when they took over Railtrack from the private sector. Eventually it's a case of how much, NOT IF they cough up.
Another disgraceful chapter in the mismanagement of the economy by Zanu-NL (as someone here called them)

[51st State]

he hasn't got anything...

And why should he? As a stock market investor, you are taking a financial gamble, based on what you think you know about a company.

If you make the wrong decision, you lose. As to how much you lose depends on how bad the company is.

NRK had a tulip financial model and should have never been bailed out by the government; they should have been left to sink or swim as any other private company would be.

Expecting cash back would make this similar to the Ladbrokes punter who lost a few million, and then asked for it all back because he hadn't won!

[sasguru]

The voice of financial certainty speaks!

What are you today Atw?

Search engine wizzard or financial guru?

[Dow Jones]

But...

he hasn't got anything...

[Platypus]

As a Northern Rock shareholder this stinks of hypocrisy.

As a Northern Rock shareholder, I think you were lucky to get anything

[AtW]

Not wishing to be outdone by our resident financial wizard

I have declared amnesty on you so you are no longer in my ignore list. I was just pleased you have gone straight and stopped using annoying icons on every post.

[Dow Jones]

Rumours

Not wishing to be outdone by our resident financial wizard, let me just be so bold and point out something that has escaped our financial guru: The fact that shares in HBOS have never been busier. Traders here are selling and buying like mad (or is it buying and selling? just to even things out). The so-called rumours were originally spread just a couple of days before HBOS directors and staff got their annual bonuses and just as they were about to receive the next lot of free shares (before the new fin/year). It so happened that most 'opted' to invest their bonuses in buying shares that were 20% down and making a good instant return. Coincidence I hear you say?
(virtually the same happened with Lehman Bros in the US)
I would treat 'rumours' with extreme care and caution.

[bogeyman]

Who says they were granted that? They weren't and they won't be.

The voice of financial certainty speaks!

What are you today Atw?

Search engine wizzard or financial guru?

[AtW]

So just why should HBOS be granted up to 164 Billion pounds

Who says they were granted that? They weren't and they won't be.