Northern Rock Share Discussion Threads

[scribbler101] 13/8/2008 17:42

Yer tiz. Some bunch of Yankee hooligans, who are so lowkey that I for one have never heard of them.

HAS ANYONE?

The Government is poised to appoint an independent valuer to assess terms of a compensation payment to shareholders, which include hedge funds SRM Global and Rab Capital.

It is understood that Houlihan Lokey, the restructuring expert, is among a shortlist of candidates.

A Treasury spokesman said: "The independent valuer will consider the value of the shares at the point of their transfer to Treasury in February. The Treasury's decision to convert the preference shares we now hold to ordinary shares will therefore have no impact on the eventual compensation that may be payable to former shareholders."

[scribbler101] 13/8/2008 17:37

DDan - article in Sun Times ?3/8 saying some US firm I've never heard or!

[greycioud] 13/8/2008 13:44

NRK will be deemed to be valueless if no valuer comes forward.

[greycioud] 13/8/2008 10:51

Dan

Banks as a rule do not dole out loans to staff willy nilly. This is just another example of how unprofessional this muppet run outfit is.

[diydan] 13/8/2008 10:30

That looks like a typical news of the world story. All quotes are from a "sourse" and the report spends half of it's time saying there is no sugestion there was anything wrong with the loans.

Remember at the time everyone who had any sense was getting buy to let loans so it is no surprise when someone who works in the commercial loans department of a bank is buying into the market. With a bit of luck she will take the paper to court and this whole issue may come out in court rather that waiting till Jan 09.

By the way is there any sign of HMG naming the valuer yet? How long can it take to look through some application forms?

[coogar] 12/8/2008 13:31

The muppets wouldn't know a proper bank if it came up and bit them on the bum!

ROFLMFAO

[greycioud] 12/8/2008 10:05

Obviously the person who sanctioned these loans should be put to the sword. In a proper bank employee loans are strongly vetted.

[bobobob5] 11/8/2008 16:30

So that's £7.5 million given to the Northern Rock Foundation by the taxpayer. Who hasn't been consulted. So what's new?

[greycioud] 11/8/2008 09:24

Jealous or what?? LOLOL!!!!!!!!

[scribbler101] 06/8/2008 11:53

I liked the early BBs, but they have got worse and worse. On the odd occasions I have surfed to the present bunch I find it intolerable to listen to for more than a minute or two.

[sbs] 06/8/2008 11:01

Joe Public is on Big Brother.

[diydan] 06/8/2008 10:19

Scribbler101
I find it amazing that after all of this the reporters on the BBC and in press cannot even be bothered to read the statement and explain to joe public what it means? Mind saying that most of Joe public sit and watch Big Brother for hours a day.

[scribbler101] 06/8/2008 09:37

BBC news have just announced "NRK are to receive £3bn of taxpayers cash after announcing massive losses" (exact quote).

Ignorant pillocks.

[tonybaloni] 06/8/2008 07:13

Extract from Telegraph item,

In the last year, Northern Rock has eaten its way through £1.4bn of "shareholder equity" left in the bank at nationalisation to provide a cushion against further deterioration in the loan book. Just £2bn now remains.......

3.4bn total at time of Nationalisation means approx £4.41 per share.

[p1zzie] 05/8/2008 21:25

hi.
just wondered if a lot of this today in results is scaremongering.
well i was looking at my nr mortgage and if i needed it i can have 1 month off for every year i hav had my mortgage so up to 6 months off.
so how many of the 662thousand accounts are taking a break?
could this hav owt to do with the rise in arrears?
thanks.

[kpwuk] 05/8/2008 17:21

BBC news have just announced "NRK are to receive £3bn of taxpayers cash after announcing massive losses" (exact quote).

[diydan] 05/8/2008 17:18

Mr Darling must be mad if he thinks that will work mind so must the Tories and Lib Dems as they both in favour of it.
The stamp duty is only 1% for homes from £125,000 to £249,000 and this is aimed at first time buyers. So on a house of 125,000 it will save the buyer £1250 at a time when they need £12,500 deposit and on a 249,000 house it will save less than £2500 when they need £24,900 deposit.
This is just a con to kid joe public into thinking it will make things better. Pity but most of them will fall for it. If anyone wanted to save 1% why not just offer 1% off the asking price? And guess what I will bet you now any seller will take it.

[zipper] 05/8/2008 17:11

yep - thats our Darling for you

but remember many house builders are already offering to pay the stamp duty for first time buyers, and its not made a lot of difference.

Mind you if the sentiment changes, by Darling temp susp stamp duty then it could help and as we all know
every little bit helps!

[bryan2] 05/8/2008 16:51

How stupid can this Government get!

News tonight that the Government is thinking of suspending stamp duty to help the struggling housing market.
So far so good!
However it seems that the discussions will go on till the Autumn budget before a decision is made.
Net result acute constipation in the housing market till then, as buyers wait to get the discount.

[bobobob5] 05/8/2008 14:59

Onsider: fancy reporting someone to the FSA? bob

[kiwi2007] 05/8/2008 14:57

From globalarbtrader on The Fool:

Average LTV rise from 59% to 62% (no doubt partly because the proportion of higher LTV customers has gone up; eg "together" from 24% to 26%, and partly because the lower LTV customers who can go elsewhere has fallen - lower house prices will not yet have had much impact in these results)

Arrears up from 0.45% to 1.18% in just 6 months eg from well below the industry average (which was entirely because their business was growing faster than the norm) to around the average. Arrears have lept in both "together" and normal by the way.

Outflows of £6.5bn in securitized funding and £2.2bn in other wholesale funding (note this reflects what other banks are suffering from as well – having to come up with money just to repay prior wholesale and ABS committments) only part offset by a rise in deposits (even with a 100% government guarantee).

£565m loss relative to £208m profit in 2007 H1 difference of ~£780m quid made up of (all rounded):

Loss of net interest income £450m
Loss of other income (fees etc) £140m
Exceptionals net of reduction in admin expenses £150m
Rise in impairments £180m

Netted off against reduction in tax £108m (so the true loss to the taxpayer is nearly £900m!)

Tier 1 capital falls from 7.7% to 5.1%.

The NRK shareholders who think this business is worth anything, and the government telling us it was a well run bank suffering from a temporary liquidity crisis, were full of excrement. Probably the only loss that has come about as a result of the crisis is the exceptionals. The rest of the losses would have happened sooner or later, once the housing market slowed – which would have happened sooner or later.

So what is going to happen to NRK? Well it will gradually be wound down to a much smaller bank, clearly. And that bank is going to have billions of pounds of losses on its balance sheet, mainly because the quality of the loan book will become worse and worse over time and all the good business for which a margin could have been obtained will have gone elsewhere (poor NRK has missed out on the widening of margins in the mortgage market that other banks are using to rebuild profits – well at least to partly stem losses – on the little business they are writing). Some of those losses will be recouped through the premium the BoE is charging for funding over normal government interest rates, but not much. The resulting operation will not be big enough to trade its way out of those losses – so guess who is going to have to pay for it?

[diydan] 05/8/2008 13:10

I have not had a chance to read the full statement yet and will do so later. However when people see the loss of £585m they may like to look at the quote from the Times below which gives a little detail. The real loss was £191m and the rest was made up of one off,s and all the bills HMG tagged on to the company.

"Rock's loan losses ballooned from £56.8 million in the first half of 2007 to £191.6 million. Rock also incurred one-off expenses of £165.6 million, including a provision of £37 million for redundancies and £35.6 million in fees to City advisers."

[scribbler101] 05/8/2008 13:01

As a nationalised business NR's capital structure doesn't really matter, but it will still have to maintain solvency ratios, Basle II etc. to be a licensed bank.

I very much doubt if ANY new capital is needed, given it's shrinking size and the £3bn plus of NAV stolen from us, only £0.6bn has gone even with every provision they could invent.

I think the new capital is indeed for the court case - to "prove" it was bust. But, of course, WE were proposing to inject new capital.