Northern Rock Share Discussion Threads

[qantas] 06/1/2010 11:02

Dear Customer(s)

All of our customers are really important to us and I want to tell you about some recent changes at the company.



As you may be aware, we have been planning to restructure Northern Rock to build a stronger future and deliver value to the UK taxpayer. Our plans have been approved by the European Commission, the Financial Services Authority and the Government and - with effect from
1 January 2010 - Northern Rock was restructured into two separate companies:




Northern Rock plc is a new, well-capitalised bank that will hold and service all customer savings accounts and some existing mortgage accounts, as well as offering new mortgage and savings products to new and existing customers.



Northern Rock (Asset Management) plc is the existing company that has been renamed. This company is also well-capitalised and holds and services the majority of existing mortgage and unsecured loan accounts. It does not offer any new products or provide the option of additional borrowing to its existing customers.



Both companies remain in Government ownership and are authorised and regulated by the Financial Services Authority.




What does this mean for you?




You do not need to take any action. All savings accounts have been transferred to the new bank, Northern Rock plc. There are no changes to your terms and conditions as a result of the restructure, and we will continue to look after your savings in exactly the same way as before. The Government's retail savings guarantee, which specifically covers all deposits made with Northern Rock, remains in place.



As a result of the company's good progress and the new bank's strong capital and funding position, the guarantee is being reviewed by HM Treasury and the Financial Services Authority. Any decision to release the guarantee will be subject to a three month notice period and fixed term deposits will retain the guarantee for the existing term of the product. In the event that the Government guarantee is lifted, Northern Rock UK savings customers will benefit from the cover provided by the Financial Services Compensation Scheme.




How to contact us



Our contact details remain unchanged so please continue to deal with us in the way you do now. If you would like to find out more please visit our website.



We remain committed to providing you and all of our customers with great service.



Thank you for your continued support.



Yours faithfully






Gary Hoffman

Chief Executive


-----------------------------------------------------------------------------------------------------------------




www.northernrock.co.uk



Northern Rock plc – Registered in England and Wales (Company No. 6952311).



Registered Office – Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL. Authorised and regulated by the Financial Services Authority.




Northern Rock plc is authorised and regulated by the Financial Services Authority for deposit-taking; Advising on and arranging mortgages and general insurance; and for introducing life assurance and investments.

[miata] 03/1/2010 18:51

National Australia Bank (NAB.AX) is gearing up for a takeover of nationalized British lender Northern Rock and has held a "beauty parade" of potential advisors on the deal, reported The Observer newspaper.

NAB, which already owns Clydesdale and Yorkshire banks in the UK, has hosted presentations by Lazard, Citigroup, Credit Suisse and Morgan Stanley as it prepares for opportunities that will follow a radical shake-up of the British banking sector this year, the newspaper said.

NAB could also bid for hundreds of branches being sold by Royal Bank of Scotland and Lloyds as part of a penalty imposed by the European Commission for approving state bailouts of the banks, the paper added.

[ekuuleus] 16/12/2009 08:58

update 64 is out

[miata] 15/12/2009 13:09

Northern Rock on Tuesday named Garry Hoffman as CEO of both Northern Rock PLC, which will offer savings accounts and new loans, and of Northern Rock Asset Management, which will oversee its mortgage book.

The lending and savings unit will be chaired by Ron Sandler, current chairman of Northern Rock. The asset management division will be chaired by Richard Pym, who will also retain his position as chairman of Bradford & Bingley.

[magician2001] 12/12/2009 09:21

They / we will, we knew that, that is where this would end up!

[grbaker] 11/12/2009 18:55

All NRK holders remember which way to vote Brown out next election: or better still, register your anger by simply not bothering.

I do hope SRM Global et al take this to the European court.

[qantas] 08/12/2009 19:38

zulu001 FAB
Gold Star

[zulu001] 08/12/2009 18:07

Confucius said "Our greatest glory is not in never falling, but in getting up every time we do."

[cpl593h] 08/12/2009 16:19

Confucius say 'never forget you had a sell button'.

[maxk] 08/12/2009 14:20

Northern Rock investors' anger as compensation is ruled out
Nick Goodway
08.12.09




Former Northern Rock shareholders today reacted with fury to news that they will get no compensation from the Government after it nationalised the bank two years ago.

Andrew Caldwell, the independent valuer who is being paid £4.5 million by the Treasury, today said he calculated Northern Rock had a black hole amounting to £5.7 billion the day before it was taken over by the taxpayer. On that basis, he said: "there is no value in the shares... and no compensation is payable".

"Surprise, surprise," said Roger Lawson of the UK Shareholders' Association (UKSA), which alongside hedge fund SRM is pushing the case for compensation through the courts.

"That is exactly what I said would be the outcome the day Northern Rock was nationalised. The Chancellor has rigged the terms of reference."

Jon Wood, founder of SRM Global which had an 11.5% stake in Northern Rock, said: "The Government has wasted £4 million of taxpayers' money to come up with the bleeding obvious under the restrictive assumptions the valuer was forced to apply."

He added: "The Government stole this company from shareholders and they've done exactly the same with Lloyds and Royal Bank of Scotland. But they are going to make an absolute fortune from them when they sell their stakes on."

Caldwell said he had "received several thousand responses" ahead of the publication of today's document.

He said he had to base his calculations on how much money Northern Rock would have been left with if it had been required to pay back the emergency £25 billion loan from the Bank of England immediately it went under.

His findings were published on the same day the Government made the formal order to split Northern Rock into a good bank and a bad bank.

This means that from 1 January there will be Northern Rock plc which is a savings and mortgage bank with £19 billion of deposits and £10 billion of loans, and Northern Rock (Asset Management) which will run off a book of around £50 million of existing mortgages.

The good bank is likely to be sold during the coming year.

SRM and UKSA are waiting for permission to appeal their case in the Supreme Court.

[kpwuk] 04/11/2009 22:30

They're or they are.

[theuniversal] 04/11/2009 18:26

just dont vote for the lib-lab-con brigade ....there all crooks, have been since 1972...maybe longer..lol

[theuniversal] 04/11/2009 18:23

the owl 1417, couldnt of said that any better....all of the govare robbin fxxxxxxxxers...should be treated as criminalsand shot..(if only that were possiable under english law, soon to be eu...by treacherous mp criminals...

winston come back we need you....lol

[the_owl] 03/11/2009 19:24

My thoughts:

Value of NRK now = Value of 'good' bank - value of 'bad' bank.

The bad NRK bank may not be 'all bad' in time though (evidence 4 Nov in NRK statement trend on the bad is changing positively), and as a recovery returns (similarly bad bits of Lloyds/RBS). Therefore the shareholders must have grounds for seeking a return of NRK to its previous state with a value (possibly the value of £1.5bn?)

Clearly Branson believed (and it would seem still believes) there is value. The Government, regulatory authorities should have listened to him instead of playing politics with things/companies it cannot hope to understand. I note B&B, alliance & Leicester are still viable entities under the Santander umbrella.

The government in my view was plain wrong to assign NRK a nil value on the grounds it would be bust if they had not bailed it out.

If they were correct, the logic follows that no one should contemplate buying new shares in RBS/Lloyds as they were (probably still are given new bailout monies needed today) in a much worse position. This includes the government which is raising its stake with our money...so we are paying some xxBn's more for a worthless asset ?? The sp's for these 2 banks indicate the banks still have a present & future value.

RAB, SRM, small investors in my view have good grounds for their legal case if comparisons are made with the Governments' inconsistent approach viz a vie Lloyds/RBS. Hopefully the government will loose - they deserve to fail on this issue for robbing shareholders (owners) with virtually no consultation..

What a shambles.


ps I am not, nor have I been a shareholder in NRK for the last 2 years.

[dysonhooverman] 28/10/2009 14:37

HMG did leave investors high and dry by suggesting there was nothing wrong before nationalising it once the big boys had cleared out 5(?) months later.

You should know by now not to trust anything the 'official' source says.

[miata] 28/10/2009 14:24

The European Commission today approved the Government's plans to split Northern Rock into a 'good' bank and a 'bad' bank.

The 'good' bank will continue Northern Rock's economic activities, while the 'bad' bank will run down down the remaining toxic assets over time.

The Government will then sell off the 'good' bank as soon as possible to a new entrant to the banking sector while the 'bad bank' will be kept under state control.

[qantas] 28/10/2009 08:07

The Telegraph adds that the European Commission will today clear the way for the sale of Northern Rock by approving the nationalised lender's plans to split into a "good bank" and a "bad bank". Analysts reckon the government could fetch as much as £1.5bn.

[qantas] 28/10/2009 08:06

The Telegraph adds that the European Commission will today clear the way for the sale of Northern Rock by approving the nationalised lender's plans to split into a "good bank" and a "bad bank". Analysts reckon the government could fetch as much as £1.5bn.

[miata] 24/10/2009 09:24

Virgin Money is holding talks with former Northern Rock chairman Bryan Sanderson with a view to him joining the board of its new bank ahead of a possible bid for Northern Rock's "good bank".

[bryan2] 22/10/2009 12:17

Northern Rock should be a safe Bank according to Mervyn Kings latest pronouncement.
He says that the banking crisis occurred because investment banking got mixed up with retail banking.
Someone should tell King that Northern Rock was a retail Bank.
Then ask him why, he in particular, was firmly against giving any help to get them through the liquidity crisis.
King is now trying to rewrite history to cover up his widely perceived pathetic performance.
Its a pity that this short sighted incompetent was at the BoE helm during the worst banking crisis since the war.