Reply to: Northern Crock

[lilelvis2000]

One needs to ask why banking systems in countries like Canada and Australia are doing just fine (relatively speaking), whilst the US and UK banks are failing and needed massive sums to save. Could it be that elGordo and Mr TB reckoned the more they make, the more taxes we get? Thus, let 'em do what ever.. whatever the banks have paid in taxes, we've more than invested in them. Good plan.

[Peoplesoft bloke]

It reminds me of the Lloyds names who complained of foul play and wanted the Goverment to bail them out when they were called upon to cough up when things went pear shaped. They too did not consider the downside of their solid gold investment opportunity

Indeed - considering they were the kind of marvellous rich clever people we're always being told are vital to our economy, they were apparently unable to grasp the meaning of "unlimited". I knew one of them who naffed off to Spain rather than pay up - rules don't apply to rich people.

[Bagpuss]

It reminds me of the Lloyds names who complained of foul play and wanted the Goverment to bail them out when they were called upon to cough up when things went pear shaped. They too did not consider the downside of their solid gold investment opportunity

[Peoplesoft bloke]

But you invested 20,000 pounds in Northern Rock, therefore you seem to be arguing that the the Government should have saved you from your own stupidity.

No one can save him from that, God knows we've tried.

[Peoplesoft bloke]

Some banks are still offering it, but remember this is/was all with sanction of the Labour government which should have put in reasonable credit controls at least three years ago. Instead, to keep a feelgood factor and thus taxes rolling in, they cynically allowed the state of affairs to get out of control.

Useless, useless and even more useless ...... OUT !!!!

Hmmmm who abolished credit controls and allowed Mutuals to float and trouser large sums in the first place?

[Bagpuss]

But you invested 20,000 pounds in Northern Rock, therefore you seem to be arguing that the the Government should have saved you from your own stupidity.

[Cyberman]

So you want regulation, I thought being conservative was free markets and cutting red tape?

There is always regulation regardless of which government, but instead of regulating with crazy things such as HIPS, Labour should try regulating the necessary things, and lending control was plainly necessary.

[Bagpuss]

So you want regulation, I thought being conservative was free markets and cutting red tape?

[Cyberman]

Offering 125% LTV mortgages during a housing bubble, erm now how could that be a bad idea?

Some banks are still offering it, but remember this is/was all with sanction of the Labour government which should have put in reasonable credit controls at least three years ago. Instead, to keep a feelgood factor and thus taxes rolling in, they cynically allowed the state of affairs to get out of control.

Useless, useless and even more useless ...... OUT !!!!

[TykeMerc]

Aye - and changing the rules so that mutuals could play at being banks was a great idea - they've all been such a success!

No kidding, who was it that was in power when that particularly stupid idea was launched I wonder?

[Peoplesoft bloke]

Offering 125% LTV mortgages during a housing bubble, erm now how could that be a bad idea?

Aye - and changing the rules so that mutuals could play at being banks was a great idea - they've all been such a success!

[Bagpuss]

Offering 125% LTV mortgages during a housing bubble, erm now how could that be a bad idea?

[Cyberman]

HMG encouraged all of the best customers to leave the Rock to reduce the mortgage book. They are now left with the dross and seem surprised that the dross are defaulting. They also seem amazed that the percentage is higher than at other banks. They truly are thick and need to be ejected ASAP.

[TykeMerc]

The govt is planning to split northern crock into two, one half will be good and
returned back to the private sector by next year, the bad half will be written off by tax payers over several years, seems like a bad attempt to window dress before the election, not the NL have any chance of winning .

That's an impressively dumb idea, like all businesses the good should be used to repair the bad. I'd rather see it trade into the black, pay off the bail out cash, then get sold off or retained as a stable National asset like the old TSB was or NS&I.

For that matter Northern Crock could be quite complementary to NS&I when it's properly dug out of the cacky as a stable mortgage and finance provider.

[Bagpuss]

Apparently those 125% LTV borrowers are defaulting faster than bollocks comes from cybertory's keyboard. So obviously it was only the Government's fault.