Northern Rock Even More Bust Than Before!

Thrugelmir

kennyboy66 wrote: »

I'm guessing you probably know that had it been wound down that those losses would have crystallised anyway.

I'm also assuming from previous posts that you would have liked to see those banks and building societies that were in trouble simply be allowed to fail with no recompense to either depositers or wholesale lenders.

Do you think this would really have been the best solution ?

The losses incurred are being paid by the UK tax payer. However the tax payer doesn't want to pay for them!

"Banks are ripping us off by charging X% above BOE base for my mortgage".

Yes, thats because the losses have to be recovered from ongoing and new loans. The bailout of the collapsed banks is being recovered by higher FSA levies. A cost that will be borne by borrowers as well for some years to come.

NR should have been closed down. The Treasury had learnt its lesson by the time the same happened to B&B and A&L.

Remember the Abbey hit problems over 5 years ago and thats why Sanatander bought it. It too forayed into Wholesale markets and came unstuck.