Northern Rock Share Discussion Threads

[bryan2] 24/6/2009 09:02

Mervyn keeps turf war going!

Todays Papers

Lord Turner, the City regulator has warned Mervyn King, governor of the Bank of England, that his proposals for the Bank to take charge of financial supervision could damage stability and lead to pointless turf wars. Adair Turner, chairman of the Financial Services Authority, suggested on Tuesday that sharing the role of tackling systemwide risk in the banking industry with the Bank, working through a financial stability committee, the FT reports.

Frustration is growing at the highest levels of the Treasury over the Bank of England's failure to take swifter and more determined action to boost flows of lending to cash-strapped businesses across Britain. Treasury ministers and officials, including the Chancellor, are said to be increasingly exasperated over the Bank's tardiness in taking more urgent steps to ease credit conditions for business, especially for small firms and medium-sized companies, the Times reports.
Northern Rock shareholders will remember that Mervyn King in particular at all stages of the liquidity crisis has been as truculent and unhelpful as he could be.
Observers suggest that he was fighting for his own "departmental empire" rather than devoting his energies in dealing with the crisis!

[cpl593h] 18/6/2009 08:17

You are mentally ill bryan2.

[bryan2] 16/6/2009 09:35

Northern Rock has plenty of money!

Date: Tuesday 16 Jun 2009

LONDON (ShareCast) - The Government is working on a plan to use Northern Rock's own funds to buy back debt from the stricken bank's bondholders in a move that could release billions of pounds of capital for the nationalised group.

The deal could mean that the Government would not have to inject all the £3bn in extra capital that it promised the bank last year. The bondholders include insurance groups, fund managers and hedge funds, the Times reports.

Where is the "100B£ black hole" Vince?

[bluenose851] 12/6/2009 13:55

ill give a tenner, 2 oasis tickets and a curly wurly!!!

[qantas] 10/6/2009 21:39

The Times

TREASURY WEIGHS THE OPTIONS FOR AUTUMN SALE OF NORTHERN ROCK

The Treasury has told its investment banking advisers to weigh up the possibility of selling Northern Rock back to the City in the autumn. Senior banking sources said the Treasury was trying to decide whether the lender should be floated on the stock exchange, sold to another financial group or re-mutualised. The government is keen to sell the bank to the private sector at a profit in order to show voters how Gordon Brown has overcome the financial crisis. Nevertheless, Treasury insiders have moved to dampen hopes that Northern Rock would be sold ahead of the next election, saying the government was in no hurry and was aiming to leverage its control of the bank to extract commitments to increase lending to the mortgage market.

[greycioud] 10/6/2009 11:58

bryan

U must get a life!

[notetech] 10/6/2009 11:15

+ Peston and his 'agenda', ... re. NRK

[miata] 10/6/2009 07:49

The Treasury is investigating the prospect of selling state-owned bank Northern Rock, according to a report.

The feasibility of floating it on the stock market or finding a City buyer are being explored, The Times said.

Selling the Rock to the private sector at a profit would look good politically but only if it delivers the full value to taxpayers, the paper said.

Separately, former Rock investors go to court on Wednesday in a renewed bid to be compensated for their shares.

They are trying to overturn a government compensation scheme, which they say will result in their shares being worthless in the wake of nationalisation.

But analysts Ralph Silva of Tower Group told the BBC that shareholders should wait until the Bank was sold and that then - with a value placed on it - they would be better placed to claim compensation.

Voter factor

Northern Rock saw the first run on a UK bank in more than a century after it was forced to seek emergency funds from the Bank of England in September 2007.

The Times said the Treasury was in no hurry to sell the Rock - which has been repaying the government. It owes £8.8bn of the £27bn it was loaned at the end of 2007.

It has cut staff volumes and slashed the size of its mortgage book - its only real asset - to £100bn.

A sale of the bank at a profit could help convince voters that Gordon Brown had overcome the crisis that led the British banking system to near collapse, the paper said.

In an earlier High Court action, a judge ruled that, had the Bank of England not stepped in to save the Rock, it would have been unable to pay its debts and it would have had to cease business.

Lawyers for the former shareholders say that, when the government took over the bank and the shares of the investors without compensation, it was a breach of human rights.

There should be compensation that reasonably relates to the value of the bank, they claim.

The case has been brought by two major investors, SRM Global and RAB Capital, and up to 200,000 private shareholders who held as much as 25% of the shares in the Newcastle-based bank.

The private shareholders, including existing and former Northern Rock employees - many at risk of losing their retirement "nest egg" shares - are backed by the UK Shareholders Association.

But there is concern that the institutional investors - some of whom had bought Northern Rock shares towards the end of its life as a private firm - had bought into the firm on the gamble that they would be compensated by the government should things go wrong.

[bryan2] 09/6/2009 10:13

Dispatches Programme.

Last nights programme confirmed what is now taken to be the facts around HMG and the financial crisis.
Now that the dust is beginning to settle, history is confirming the views put forward by myself and others on this thread.
1. Total lack of regulation of Banks in the UK.
2. Incompetence of Mervyn King.
3. The habitual leaking by Browns cronies of distorted information to force the agenda in the direction that suits Brown.
We have a long list of such leaks from Kingman, Whelan and McBride.
The targets included Northern Rock, the Opposition and even Alistair Darling.
The only person that history has yet to settle accounts with is Vince Cable MP whose "100B£ black hole" hoax about Northern Rock has yet to be exposed.

[scribbler101] 26/5/2009 15:48

Not dead, adyfc - and not interested in people like you.

[kpwuk] 22/5/2009 22:25

frankiestheone. or just wait and buy a nice beachside property!

[bluenose851] 22/5/2009 21:48

the UK is more likely to go than spain!!!

[frankiestheone] 21/5/2009 21:57

spain going bust...LEAVE NOW while you can

[bluenose851] 21/5/2009 09:31

and thats why the S&P have downgraded the UK to negative today and borrowing is now foreecast to be 100% of GDP. Wake up and smell the coffee

[bryan2] 20/5/2009 07:52

Mervyn makes money from wholesale Banking crisis

Date: Tuesday 19 May 2009

LONDON (ShareCast) - The Bank of England revealed yesterday that it had racked up record profits of almost £1bn in the year to February as its fee-earning activities burgeoned amid the global financial and economic turmoil, reports the Times

While most Central Banks tried to support their Banks in a period when wholesale markets froze, Mervyn King and the BoE thought it would be a good idea to screw the Banks instead of assisting them.
Its like the ambulance driver charging a hefty fee for the patient to be taken to hospital.
The function of a Central Bank should be to facilitate a smooth return to normal banking not to seek to profit from the crisis.

[onsider] 16/5/2009 00:09

Well that's a weight off my mind then....

[bluenose851] 14/5/2009 09:13

You dont deservee any. the company was insolvent

[greycioud] 13/5/2009 16:42

Still no compo though eh muppet??

[greycioud] 13/5/2009 16:40

You guys enjoying your compo??

[bryan2] 12/5/2009 07:33

Government and BoE to blame!

Governments and central bankers must take the blame for the financial crisis - not bankers, investors and others in the market, according to a new study. In a comprehensive analysis of the causes for the financial and economic crisis, the Institute of Economic Affairs (IEA) has concluded that the disaster was caused by authorities' mistakes rather than market failures, reports the Telegraph.

[miata] 27/4/2009 17:30

In February the High Court found in favour of the Government, which argued that as it propped Northern Rock up with loans between September 2007 and February 2008, any valuation of the business when it was nationalised should be on the basis that the funding had been withdrawn.

However, the judge acknowledged that the high-profile case was not going to be settled there.

Round two will start in the Court of Appeal on June 10, and SRM has reserved funds to take the case all the way to the Court of Human Rights in Strasbourg.

A lot is riding on the case. Since raising $3bn (£2bn) in September 2006, SRM – which rarely takes short positions in shares – has been buffeted by the economic crisis, leading to disappointing returns. Investors locked in their money for either three or five years, so September could be crunch time for Mr Wood. He remains steadfast. The final word may be delivered in a European court room, several years from now.