Northern Rock Share Discussion Threads

[joe_public] 23/1/2009 14:37

what else would you expect from an unelected egotistic pr*tt who reckoned he 'saved the world'.......

[kpwuk] 23/1/2009 11:34

Telegraph.

Northern Rock may get £10bn from government to increase mortgage lending
The Government is considering injecting as much as £10bn into Northern Rock and may start hiring new employees in order to use the Newcastle-based lender to ramp up new mortgage lending.


By Katherine Griffiths, Financial Services Editor
Last Updated: 10:20AM GMT 23 Jan 2009

The Treasury has yet to make a final decision on its plan for Northern Rock, but there are growing expectations in the City that the Government is planning a more radical capital injection than previously thought.

The move would represent a reversal on the policy of shrinking the nationalised lender as quickly as possible so that it could repay the Government's £27bn loan. As part of the repayment efforts, the bank is currently making 2,000 employees redundant.

The injection into Northern Rock is likely to be in the form of equity and a new loan. It will include the £3bn the Government has already earmarked to be converted from part of its loan to the bank into equity.

Northern Rock may receive the money in the form of a 50:50 split between new equity and a loan. About £5bn of new equity could give Northern Rock the firepower to do about £50bn of new lending, providing the capital is not eroded by bad debts on Northern Rock's existing mortgage book.

Northern Rock is due to unveil a new business plan in the next few weeks. Treasury officials have been liaising with Brussels as they need a waiver over European Union rules on state aid.

The Treasury has not made a final decision on how much cash to inject into the bank. While the far-reaching plan is gaining ground, officials have not ruled out a more limited approach of just swapping the £3bn of debt for equity.

Northern Rock would not comme

[kpwuk] 23/1/2009 11:34

Telegraph.

Northern Rock may get £10bn from government to increase mortgage lending
The Government is considering injecting as much as £10bn into Northern Rock and may start hiring new employees in order to use the Newcastle-based lender to ramp up new mortgage lending.


By Katherine Griffiths, Financial Services Editor
Last Updated: 10:20AM GMT 23 Jan 2009

The Treasury has yet to make a final decision on its plan for Northern Rock, but there are growing expectations in the City that the Government is planning a more radical capital injection than previously thought.

The move would represent a reversal on the policy of shrinking the nationalised lender as quickly as possible so that it could repay the Government's £27bn loan. As part of the repayment efforts, the bank is currently making 2,000 employees redundant.

The injection into Northern Rock is likely to be in the form of equity and a new loan. It will include the £3bn the Government has already earmarked to be converted from part of its loan to the bank into equity.

Northern Rock may receive the money in the form of a 50:50 split between new equity and a loan. About £5bn of new equity could give Northern Rock the firepower to do about £50bn of new lending, providing the capital is not eroded by bad debts on Northern Rock's existing mortgage book.

Northern Rock is due to unveil a new business plan in the next few weeks. Treasury officials have been liaising with Brussels as they need a waiver over European Union rules on state aid.

The Treasury has not made a final decision on how much cash to inject into the bank. While the far-reaching plan is gaining ground, officials have not ruled out a more limited approach of just swapping the £3bn of debt for equity.

Northern Rock would not comme

[theuniversal] 22/1/2009 19:48

here's the 2006 bbc story covering the last payments of ww2 debt, makes interseting reading....many have forgtten this and theres a lot more juicey stuff b4 ww2 aswell..



tu

[theuniversal] 22/1/2009 19:23

and also, just a thought in mind, how much were we paying the americans for there ww2 loan to us, as we have now finishe dpaying it back, what would be the saving on that i wonder? no one i have talked too has even whispered this around , all has been forgotten since the credit crunch.....

hummmmmmmmmmmmmmmmmmmm...
tu

[k38] 21/1/2009 23:59

1 year after the evens and the value of Northern Rock is in a position to repay RBS and others.

[k38] 21/1/2009 23:28

NRK,is the strongest and healthiest bank,in the UK today.

[diydan] 21/1/2009 14:52

I love the third one "help" banks with cash at 12% then slag them off for not lending it out at 2% a classic..... Pity it seems every MP just sticks their hand up and votes for it though. Thats from all parties...

[montyhedge] 21/1/2009 14:49

I know someone who works at NR figures very good, shareholders were shafted here.

[chambeaj] 21/1/2009 13:48

LOL!
Fury as Northern Rock's 4,000 workers to get £8.8million in bonuses



Northern Rock employees will pocket a whopping 10 per cent pay bonus this Friday, it has been revealed.

[bryan2] 21/1/2009 10:34

BoE's economic Perpetual Motion Machine.

Robert Peston is about to announce that the BoE have devised an economic Perpetual Motion Machine.
The device has the backing of HMG and the Conservative Party
This device will solve the problem of a banks illiquid mortgage assets.
Since the sub prime scandal in America all mortgage assets have been regarded as having some toxic content.
For the payment of a commercial fee to the BoE the bank can have a partial guarantee against loss in these assets.
Its a bit like the mortgage protection fee only it is paid not by the customer but by the bank.
This will make the mortgage assets liquid and the next stage is to lend these freed assets for additional mortgages at a rate close to the BoE base rate which will involve(you've guessed it) further fees to the BoE.
The fees to the BoE can be passed to HMG which in turn can be paid back as capital to the Banks. Thus the Treasury actually profits out of the crisis!
Some mean spirited sceptics say;
1.This will mean existing shareholders will be diluted.
2. Banks will be forced to lend at uneconomic rates.
The Patent Office have refused to examine the BoE model as for the last 100 years Perpetual Motion Machines are considered to be scientific nonsense.
A list of previous BoE methods are shown below;
1. Head in the sand model
2. Moral Hazard lecture
3. 12% Pref Shares "help" (costing banks 17%)
(Copyright BoE)

[onsider] 20/1/2009 16:08

Well, I know loads, but know no one, so I am clearly stuffed...

[diydan] 20/1/2009 14:09

Oh how things have changed. I seem to remember 6 months ago when HMG were demanding NR paid back all the money asap. They even refused a management buy out because they wanted it paid back within 2 years.

Now they want it to save UK PLC and housing market but hold on I thought they argued last week NR was worthless and had no value? Is this like an episode of Dallas have I been asleep for 6 months has it all been a dream?

[ekuuleus] 20/1/2009 14:06

Its not what you know, its who you know.

[miata] 20/1/2009 13:28

The Treasury has told Northern Rock to return to offering mortgages at competitive rates.

The Government hopes that reviving the Rock will help stabilise the housing market.

[diydan] 20/1/2009 09:22

Lets just remember Northern Rock needed £27 Billion and have payed back 2 thirds of it in less than a year and would have had the rest payed back by 2010 and they had 20% of the UK mortgage market.

The Government has put in £100 Billion yesterday plus the £600 Billion a few months ago so it is at least £700 Billion and to be honest I find it hard to remember just how much Mr Darling is spending I just hope someone at the treasury is keeping count? But with all of that we are never told when the banks are going to pay any of it back? Mind in my view these figures are so huge the banks are in reality nationalised anyway as there is no way it will ever be payed back.

It is annoying that banks such as NR, BB and AL were all either nationalised or forced into a rushed sale to foreign banks when in reality there problem was just getting cash funding and Mr Darling now seems to be throwing that around now like there is no tomorrow? Where as the likes of RBS Barc LLoy etc have lost Billions on trying to be come world banks and buying dodgy US sub prime loans or paying way over the odds for foreign banks etc and they are now having money thrown at them?

[magician2001] 20/1/2009 07:19

Thanks for the reply guys.

[tonybaloni] 19/1/2009 23:23

Northern Rock / Bradford & Bingley sneezed and were nationalised.

RBS has full blown AIDS and is given more and more support.

Roll on the findings of the Judicial review

[mavtt] 19/1/2009 22:53

Magician2001 had a look back at one of the last rule 8.3s and the figures it gives were :- number held 34,444,299 which is (8.18%) so that would make around 421,000,000 shares or about £4 a share if 1.8 billion was the payout.

[onsider] 19/1/2009 22:18

Not sure, however the figure of a £1.8 billion payout from HMG if shareas were valued at £3 would point to a figure of 600mil shares.

Just a guess..

[magician2001] 19/1/2009 19:29

Does anyone know how many shares are/were in circulation?