Northern Rock Shareholders

sh856531

> So that's the last I have seen of my £21,000?

Sorry matey the company is bust - its that simple.

And not to put too fine a point on it, but I will be very unhappy if I have to pay compensation to anyone who invested in NR. I didn't invest in NR and I'm sure as hell not paying for those that did. I wish there were a way for you not to have lost all that money, but the taxpayer isn't to blame for what happened and shouldn't be robbed to pay compensation to people making individual investment decisions

Best Regards

cvd

Indeed, the Northern rock board did say that had the stopped doing what they had been doing the shareholders would have sacked the chairman and others.

Yes, I have heard this lie also. It has been said about Crosby and his time at RBS. But it is a lie.
Lloyds had a conservative strategy and stuck to it despite a small number of shareholders complaining. In practice, individual shareholders (even if they band together) have no power.

opinions4u

I think the shares should be given a value.

Based on what they would, in expert opinion, be worth if the capital raising and government lending afforded to RBS and HBOS had been given to Northern Rock.

15p a share perhaps?

Bradford and Bingley is a very different case and I don't think that company had any value left on nationalisation, FSCS claim etc etc.

ad44downey

opinions4u wrote: »

I think the shares should be given a value.



15p a share perhaps?

.

That's 15 pence too much.

I can't believe people are seriously suggesting we bale out hedge funds, gamblers and chancers. Where's the money going to come from? A penny on income tax maybe? :rolleyes:

Stavros_3

Where does it state the shareholders were to blame (and no I'm not one)

Quote - Committee chairman John McFall said Northern Rock's directors were primarily to blame, but added that financial stability safeguards "failed abysmally".

Quote - The Newcastle-based lender got itself into financial difficulties because its business model left it ill-prepared for the global credit crunch.

Quote - Liberal Democrat Treasury spokesman Vince Cable said Northern Rock's managers "behaved like a bunch of cowboys".

http://news.bbc.co.uk/1/hi/business/7209500.stm

ad44downey

If you own a dog and it bites someone you're to blame. The same applies for shareholders (owners).

Stavros_3

Absolute rubbish, it was the idiots running the dogs home that made the financial decisions that were to ruin the company. The business model was run by the directors not the shareholders

opinions4u

ad44downey wrote: »

That's 15 pence too much.

I can't believe people are seriously suggesting we bale out hedge funds, gamblers and chancers. Where's the money going to come from? A penny on income tax maybe? :rolleyes:

I agree to a point.

That said:

1) The Northern Roc was merely the first bank to hit the wall in the current crisis.

2) The state centred solution for it was different. Therefore NR shareholders have been disadvantaged when compared to the solutions forced on RBS and HBOS shareholders - who have retained some value.

3) The government is now operating Northern Rock as a going concern and will probably end up making profits out of it.

For clarity, I do not own shares in Northern Rock but have lost a substantial sum in HBOS.

Stavros_3

napoleon wrote: »

The directors are elected by the shareholders.

Thats stating the obvious. The shareholders are not the ones making the dodgy investments, you cannot blame the shareholders for the company directors business model's. Look at R.B.S, look at HBOS, even the FSA couldn't fathom out what they were up to before it was too late.

sh856531

Of course shareholders are to blame. They own the company; a company that lent to every tom, !!!!!! and harry and precipitated the current crisis. And now they want compo from the taxpayers of this country. It's obscene.

Whilst I don't believe the shareholders are due any compensation, the idea that the shareholders are responsible for the banks collapse is utter !!!!.

There are people on this board who will currently be invested in literally hundreds of companies as part of portfolio balancing. The idea that they could possibly understand the particulars of every business and every industry that they have invested in, such that they could tell whether any single company is playing silly !!!!!!s is stupid.

If the *FSA* couldn't even tell that NR was going down, how could the average investor investing in scores of diverse companies and industries know?

Best Regards

S