Northern Rock Share Discussion Threads

[diydan] 05/8/2008 12:49

Onsider
This looks very much to me like the BB. issue where the current holders shares would be devalued if the 25% of new stock had been sold to the US company but the normal shareholders could not buy into it?
This just looks like a move by HMG to dilute the stock of NR? As you know most of the loans were never drawn down, they were there to maintain the required loan to capital ratios. As the mortgage loans come down the need for the loans from BOE drops away also the deposits are rising again reducing need for BOE loans. As far as I can see the new ratio that all banks are now aiming for is around 10% up from 7% as it was in the past. So I see no reason for the £3B from HMG for stock? Lets be honest at the rate NR are going paying the loans back to the BOE and reducing their mortgage book they would have no BOE debt within a year and very little by the time it goes to court in Jan 09? I do not think HMG would like that do you?

[k38] 05/8/2008 11:58

bryan2 - 12 Jun'08 - 13:45 - 796 of 1017


Coogar-prat
There is always the hope that medical science will come up with something that will cure your condition.
Even a complete prat like yourself would like to find a way to becoming a normal human being.

L
O:)
L

[k38] 05/8/2008 11:55

Rock has reduced its debt to the Bank of England by £9.4 billion to £17.5 billion.

Ron Sandler, chairman of the bank, said the losses were likely to continue as the credit environment remained difficult. But he added: "I am confident that the foundations have been well laid for recovery and return in due course to private ownership."

[onsider] 05/8/2008 11:51

£3B is almost DOUBLE what they MAY need and will only be drawn upon IF needed.

NO ADDITIONAL funds to be hand over. NR would simply be given the opportunity to divert funds from repaid mortgages into the cash book, INSTEAD of repaying them to the Government. In the long term, the would still be paying them back.

Being as NR are £3.3B ahead already on the expected repayments this year, the net effect is that, against the Business Plan, they would be £300m up....

Their are lies, damned lies and statistics, or in this case didgy Government led accounting...

Yet another case of the commie labour Government misleading the public to aid their theft of The Rock....

[zipper] 05/8/2008 11:02

'extra £3B of taxpayers money handed over to NRK by Darling' Bloomberg Tv

[onsider] 05/8/2008 10:40

This will be treated as a Rights Issue, with the sole Shareholder being HMG. This won't dilute what we had if I understand it correctly, though I would hope that this matter would be clarified (and fought for) in the eventual court case.

Remember, the £26Bn loan was effectively secured against those mortgages. As those mortgages have been redeemed, to generat the $9.3Bn then NR must be obligated to repay that portion of the loan as there is now nothing to secure it against.

That my laymans view, anyhow.

[scribbler101] 05/8/2008 09:04

They need to invent a lot more losses than that to eliminate the NAV they stole.

[miata] 05/8/2008 07:46

£585 million loss before tax for the first six months of this year.

It repaid 9.4 billion pounds to the Bank of England, about a third of its 27 billion-pound debt.

The number of mortgage borrowers that are more than three months in arrears has doubled in the space of six months to 1.18 per cent of the overall home loans book.

The government will convert as much as 3 billion pounds of outstanding debt into equity, the Newcastle, England-based bank said in statement today. It will also exchange 400 million pounds of preference shares held by the Treasury into ordinary shares. The decision is subject to approval by the European Commission.

The summary income statement £m
Six months to 30 June / Year 2008 / 2007
Net interest income (51.9) 392.6 761.4
Other income 12.6 127.5 (39.0)
Total income (39.3) 520.1 722.4
Administrative expenses (134.8) (152.4) (276.1)
Exceptional expenses (165.6) - (127.2)
Donation to the Northern Rock Foundation (7.5) (14.8) (14.8)
Total expenses (307.9) (167.2) (418.1)
Impairment charges on loans and advances (191.6) (56.8) (239.7)
Impairment charges on unsecured investment loans (46.6) - (232.2)
(Loss) / profit before taxation (585.4) 296.1 (167.6)
Taxation 19.9 (88.0) (31.4)
(Loss) / profit for the year (565.5) 208.1 (199.0)
Attributable to:
Appropriations 26.7 19.9 44.5
(Loss) / profit attributable to equity shareholders (592.2) 188.2 (243.5)
Total (565.5) 208.1 (199.0)

[zipper] 05/8/2008 07:15

'NRK needs EU state help' per Darling

[zipper] 05/8/2008 07:12

'Northern Rock, the state-owned bank, will reveal this week that roughly one in five of its mortgage customers faces negative equity next year as it unveils a substantial loss for the six months to June,' writes the Telegraph

Nothing to do with the previous management and its 'over 100% mtges' then!

[onsider] 04/8/2008 23:55

Actually, coogarprat, they are WITHIN the range of the Business Plan...

[coogar] 04/8/2008 22:30

"half year results tommorow 5th aug.
info northern rock website"

Worse than expected £500m loss.

Mr Peston of the BBC has the details.

LMAO

[coogar] 04/8/2008 22:28

"half year results tommorow 5th aug.
info northern rock website"

Worse than expected £500m loss.

Mr Peston of the BBC has the details.

LMAO

[onsider] 04/8/2008 21:38

More Dodgy Reporting from the BBC



Title states: Northern Rock makes a £500m loss

However this is not proven yet, this is merely Peston the pillocls guessing...

NOTE: I am not saying it isn't true, buit questioning why he is, once again, able to leak this stuff...

[p1zzie] 04/8/2008 15:38

half year results tommorow 5th aug.
info northern rock website

[p1zzie] 04/8/2008 15:35

half year accounts announced 5th aug.tommorow
info northern rock website.

[bryan2] 04/8/2008 08:19

Press Reports.

1. The Independent states that former directors of Northern Rock have been gagged, preventing them talking to former shareholders of the bank preparing a legal case against the terms of nationalisation..........

Why have they been gagged?
Are they likely to give away the secrets of the Trident Submarine?
Or is it that the Government fears that the truth will be highly embarrassing!
Is there a whistleblower somewhere to spill the beans in the public interest?

2. Northern Rock, the state-owned bank, will reveal this week that roughly one in five of its mortgage customers faces negative equity next year as it unveils a substantial loss for the six months to June, writes the Telegraph.......
Considering that NRK shareholders with a good record are being driven out by the highest mortgage rates in the business it should come as no surprise that the quality of the remaining NRK mortgage book will suffer!

[onsider] 03/8/2008 22:10

This will roll on and on for years. I would not expect this to be reconciled within the lifetime of this government..

[onsider] 03/8/2008 22:01

I must have missed this being published. Has anyone looked at it?

[onsider] 03/8/2008 21:59

Nice little '1 Year On' story from the BBC.



Seems to gloss over the fact that their own Robert Preston was heavily involved in the leaking of information, oops, sorry, reporting of information that led to the run on the bank...

[qantas] 03/8/2008 20:00

Court date for Northern Rock
Mail on Sunday
3 August 2008, 12:53pm
Shareholders in Northern Rock, furious at the Government's handling of the bank's crisis, will get their moment in court early next year as a date has been set for the judicial review into the way the lender was nationalised.





The January 12 start of proceedings follows last Thursday's defence filing by Government law firm Slaughter & May against the claim by shareholders. The Government rejects the shareholders' claim.
A valuation scheme has now been established to suggest a price at which shareholders might be compensated for its nationalisation. But the hedge funds argue the terms of the scheme are illegal because they say the value must assume that Northern Rock was effectively in administration at the time of nationalisation.

•• Northern Rock has confirmed plans to make about 1,300 staff redundant as part of restructuring plans. The proposals added to the steady rise in the unemployment head count. Honeywell Turbo Technologies, a vehicle parts manufacturer, told workers last week it planned to cut more than 85 workers by the end of the year.

[scribbler101] 03/8/2008 17:29

Depends what you think is the question. The government might have seized the shares, or it might have seized all the assets fron the company, leaving the shares untouched. Doubtful if the press would make such nice distinctions.

Indeed I do not know for sure which they have done. Surely if they purport to have seized my shares they should have at least notified me?

[onsider] 03/8/2008 16:53

I can not 'get' how someone could not know, at the very least, the answer to Fred49's 1st question...

Whilst it is true that the government has not told shareholders, the news media certainly did, ad infinitum at the time it occurred....