Bradford & Bingley hit by interest rise from Treasury

[Old Greg]

Hang on, I am trying to think of a response that shows my profound grasp of financial matters. Did I mention I found a spider in my underpants?

A Scottish Widow?

[OwlHoot]

Hang on, I am trying to think of a response that shows my profound grasp of financial matters. Did I mention I found a spider in my underpants?

The most profound response to an AtW post on economics is normally "bollocks".

But as he didn't comment on his cut and paste this time, that doesn't really apply.

Edit: Oh wait, there's a line at the bottom. I thought that was his sig, but on second thoughts ..

bollocks

[MarillionFan]

Hang on, I am trying to think of a response that shows my profound grasp of financial matters. Did I mention I found a spider in my underpants?

I'll pay you 1.5% over base for it.

[xoggoth]

Hang on, I am trying to think of a response that shows my profound grasp of financial matters. Did I mention I found a spider in my underpants?

[AtW]

The Treasury has raised the rate of interest on loans used to prop up Bradford & Bingley (B&B) during the banking crisis, in a move that will accelerate payments to the Exchequer.

The increase in the interest payment – from 1.5 percentage points over base rates to five – was revealed as the taxpayer-backed company that owns B&B's mortgages and Northern Rock Asset Management (NRAM) – the "bad" part of the Newcastle-based lender – said it had paid back another £1bn to the government. The two banks still owe £47.7bn.

UK Asset Resolution (UKAR) also reported an increase in profits for NRAM in the six months to June, to £344m from £182m, and a rise at B&B to £152m from £83.6m.

More from the source: Bradford & Bingley hit by interest rise from Treasury | Business | guardian.co.uk

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Interesting they got used to low BoE rates and just increased premium to 5%, I wonder if that means that the rates will stay low...