Northern Rock Share Discussion Threads

[scribbler101] 03/12/2008 00:01

Like so many Scots themselves, I have very fond regards for Scotland, but not to the extent of actually living there.

I am in fact a founder member of the "English Scottish Independence Campaign". And a strong supporter of a referendum on Anglo-Welsh independence.

[tipsytoad] 02/12/2008 12:53

there.....
i'm supposed to be coogar - perhaps all three of us are the same poster!

[greycioud] 02/12/2008 12:48

Thats the trouble with you bryan! You just can't get owt right can you??

[miata] 02/12/2008 09:53

Scottish Widows Bank

[scribbler101] 01/12/2008 22:59

So far as I can see no bank run by Scottishers is sound.

[miata] 01/12/2008 09:50

London Scottish Bank collapses.

[bryan2] 01/12/2008 09:19

Times Change

Some six months ago Ron Sandler (Government non-dom appointed NR supremo) ran a witch hunt against the previous NRK board based on the fact that they did not instigate repossession proceedings until mortgagees were 3 months in arrears.
Vince Cable MP joined in and said it was a complete scandal and the previous board should be in jail.
Within a few days reality kicked in when it was found that Northern Rock was in fact following the industry norm.
The tabloids moved on and there were of course no apologies from Sandler or Cable.
Today's announcement (below) will contrast with the vicious spin that Northern Rock has had to cope with.

Borrowers who fail to maintain mortgage repayments will be given a six-month breathing space under a plan due to be announced today by the Royal Bank of Scotland, the Times has learnt. The bank, which owns NatWest, is expected to promise not to repossess homes for six months from the date when customers first admit that they have a problem.

The mountain of spin and lies behind the Northern Rock crisis will be exposed in the upcoming court case.

[bryan2] 29/11/2008 09:20

Thre is a school of thought that suggests that Graycloud and coogar are one and the same person.
I think that the evidence for this conclusion is very strong.
Otherwise, how would you find two complete prats posting the same rubbish within ten minutes?

[bryan2] 29/11/2008 09:19

Thre is a school of thought that suggests that Graycloud and coogar are one and the same person.
I think that the evidence for this conclusion is very strong.
Otherwise, how would you find two complete prats posting the same rubbish within ten minutes?

[coogar] 28/11/2008 17:01

is that a rhetorical question? ROFLMFAO

[coogar] 28/11/2008 17:00

Is that a rhetorical question? ROFLMFAO

[greycioud] 28/11/2008 16:53

So how much compo have you muppets received??

[greycioud] 28/11/2008 16:52

So how much compo have the muppets received??

[diydan] 28/11/2008 16:39

One of them will have to go after the court case anyway. Is Merv going to get out before it gets to court? Like all those other bosses put in place to run NR for HMG and do their dirty for them?

[bryan2] 28/11/2008 14:54

Mervyn Kings attitude to mortgage backed bonds is one of the major reasons that the British mortgage Banks are in such a sorry state.
The withdrawal of American funds over the last 18 months and the very low rate of British savings deposits meant that as mortgage bonds came up for renewal there was a funding gap.
With no capital to fund these gaps one by one the Banks were forced into a crisis.
The funding crisis spread to the rest of the economy and so the present crisis.
For Northern Rock and and HBOS for example most of their capital was tied up in mortgages.
For both these institutions there was very little sub prime element in their domestic mortgage book.
Given the crisis and its catastrophic consequences the refusal of the BoE to issue mortgage backed bonds condemned the British Banks to the economic abyss.
the BoE implies that residential property and the mortgages secured on it are worthless.
If the BoE had issued gilts in return for good quality mortgages(say 2 year old or older, 80% or less LTV) would have freed up the capital situation of the Banks.
The taxpayer in return would get good assets and a good interest return based on mortgage payments.
The issuance of such bonds will be a major step towards the normalisation of the British financial sector and economy.
If it also causes the resignation of Mervyn King then so much the better.

[bryan2] 27/11/2008 16:51

Showdown Imminent !!!

A resignation is probably the outcome over a clear division between Mervyn King and HMH over mortgage backed bonds.

FT article.
Doubts cast over Treasury guarantee plan

By Alex Barker and Paul J. Davies
Tuesday Nov 25 2008 18:05
The Bank of England questioned a Treasury-endorsed plan to guarantee mortgage-backed securities on Tuesday, arguing for better ways to revive home lending.
Mervyn King, governor, said he was un­convinced by Sir James Crosby's proposal to extend about £100bn of guarantees if its purpose was to resurrect a "form of lending that for rather good reason has fallen out of favour".
Alistair Darling lent his broad support to the proposals on Monday and said his officials were working on a "detailed scheme" based on the recommendations.

In the past Mervyn has indicated that if these bonds are introduced he will resign.

[bryan2] 27/11/2008 16:49

Showdown Imminent !!!

A resignation is probably the outcome over a clear division between Mervyn King and HMH over mortgage backed bonds.

FT article.
Doubts cast over Treasury guarantee plan

By Alex Barker and Paul J. Davies
Tuesday Nov 25 2008 18:05
The Bank of England questioned a Treasury-endorsed plan to guarantee mortgage-backed securities on Tuesday, arguing for better ways to revive home lending.
Mervyn King, governor, said he was un­convinced by Sir James Crosby's proposal to extend about £100bn of guarantees if its purpose was to resurrect a "form of lending that for rather good reason has fallen out of favour".
Alistair Darling lent his broad support to the proposals on Monday and said his officials were working on a "detailed scheme" based on the recommendations.

In the past Mervyn has indicated that if these bonds are introduced he will resign.

[coogar] 27/11/2008 00:54

LONDON (ShareCast) - State-owned lender Northern Rock (LSE: GB0001452795.L - news) has ignored government calls for banks to drop mortgage rates in line with the base rate by raising the cost of some of its fixed-rate deals.

The bank, nationalised in February, has increased the rate on its most popular fixed-rate mortgages to between 0.2% and 0.3%.

Rock attributed the move to its promise not to take advantage of government backing, which involves not originating more than 2.5% of new mortgages in any one year and not being market leader in any product category for a sustained period of time.

Their rates had been considered attractive by borrowers, which prompted a rush of new business in recent weeks.

Its one-year fix goes up to 4.19% from 3.99%, while the two-year deal for a buyer with a 25% deposit and £995 for the arrangement fee rises to 5.19% from 4.99%.

Chancellor Alistair Darling and Bank of England governor Mervyn King have both warned that action will be taken against the banks unless they begin lending again and cut borrowing costs.

[coogar] 27/11/2008 00:54

LONDON (ShareCast) - State-owned lender Northern Rock (LSE: GB0001452795.L - news) has ignored government calls for banks to drop mortgage rates in line with the base rate by raising the cost of some of its fixed-rate deals.

The bank, nationalised in February, has increased the rate on its most popular fixed-rate mortgages to between 0.2% and 0.3%.

Rock attributed the move to its promise not to take advantage of government backing, which involves not originating more than 2.5% of new mortgages in any one year and not being market leader in any product category for a sustained period of time.

Their rates had been considered attractive by borrowers, which prompted a rush of new business in recent weeks.

Its one-year fix goes up to 4.19% from 3.99%, while the two-year deal for a buyer with a 25% deposit and £995 for the arrangement fee rises to 5.19% from 4.99%.

Chancellor Alistair Darling and Bank of England governor Mervyn King have both warned that action will be taken against the banks unless they begin lending again and cut borrowing costs.

[greycioud] 26/11/2008 17:01

This country can no longer afford GB & his Government of Muppets. We will all be bankrupt.

[greycioud] 26/11/2008 16:50

Its a muppets bank!!

[diydan] 25/11/2008 16:35

I have not seen the details but a Treasury report has said that new mortgage lending next year will drop to 0% so if this is not fixed soon UK house prices are in for a hell of a fall even from here?
The way Darling has handled this whole situation has been a desaster. I will not call it a crisis because if he had done a decent job of supporting NR and any other UK banks that needed it last year it would never have got this bad.
However I do not just blame him all the major parties made the same mistake and thought a bit of bank bashing would be good for poll ratings so they all must carry some of the blame.
I must also say mind that I do not think joe public has any idea of how bad things will be in 12 months time?

[bryan2] 25/11/2008 11:47

As time moves on it will become clear that mortgage problems in UK will be several orders of magnitude less than the American sub prime species.
In terms of the British housing bubble, valuations were becoming stretched but no more than a mild correction and a stand still for a period would have smoothed out.
The credit freeze started in USA and meant that any business model that implied a funding gap was going to have problems.
The central bank is alone in having the means to solve a general credit freeze.
At first some people said that only Northern Rock had a credit problem but now the evidence of ruined banks is all around us.
The BoE and the Treasury seem to be very slow learners.
If as you say Alistair Darling is still blaming Northern Rock then he is still delusional.
A full scale public inquiry should be set up to study the causes and the actions of the authorities in response to the credit crisis.

[diydan] 25/11/2008 10:46

Just watched Alistair Darling this AM and he blaming banks and named NR which is odd as whatever you say about NR everyone accepts that no one seen the funding crisis coming and NR were simply the first to go to BOE.
However Darling has had well over a year to work on the problems facing UK Plc yet the tax cut of £145 he gave yesterday is the one he put on only 6 months ago? It is not long since h was calling for Ex NR bosses to be brought to court because of the way they handled the bank. I wonder if Darling should be on the way he has handled UK Plc?