Mugged again

caveat_emptor

Cost to us to bail out Northern Rock 1.4 billion.Cost to Virgin Money to buy 750 million. Good old taxpayer is always there to pick up the tab.

DotMatrix

Yes, just seen that on the BBC. There are additional millions to be paid on top of the amount agreed for the sale. I guess it may be a good time top get rid of NR given market turmoil in the banking industry. Also a lot of banks have been hammered share price wise recently. Who is to say this deal was worth £1bn 6 weeks ago.

caveat_emptor

Now I'm angry. Just heard Ron Sandler who I think was responsible for selling NR saying that this is a good deal for the taxpayer but didn't say why. Does anyone else know?

crazyguy

Did you pay this out of your own pocket then ?

caveat_emptor

LOL yes I did and if you pay tax so did you. If you like being mugged that's fine by me.

ChiefGrasscutter

caveat_emptor wrote: »

Now I'm angry. Just heard Ron Sandler who I think was responsible for selling NR saying that this is a good deal for the taxpayer but didn't say why. Does anyone else know?

Well if you consider there was only one bidder (Virgin) then the answer is yes it is a good deal.
Various other groups had a look....but decided they had better things to do than make a bid for it.
So if you were to ban Virgin from the bid process then the result would be that no one would be bidding for it.....which means that in effect Northern Rock is worth zero.

crazyguy

caveat_emptor wrote: »

LOL yes I did and if you pay tax so did you. If you like being mugged that's fine by me.

Yes I do pay tax and a fair amount to boot but once it has been taken from your income it is no longer yours therefor you have lost nothing here so I do not understand the need for a rant about it.

opinions4u

caveat_emptor wrote: »

Now I'm angry. Just heard Ron Sandler who I think was responsible for selling NR saying that this is a good deal for the taxpayer but didn't say why. Does anyone else know?

It was on course to lose over £100m this year. Losses from the point of sale onwards don't have to be picked up by the taxpayer.

So capping the losses and getting paid for it seems like a plan.

Thrugelmir

opinions4u wrote: »

It was on course to lose over £100m this year. Losses from the point of sale onwards don't have to be picked up by the taxpayer.

So capping the losses and getting paid for it seems like a plan.

and not forecast to make any profit until the end of 2012 at the earliest.

Lokolo

ChiefGrasscutter wrote: »

Well if you consider there was only one bidder (Virgin) then the answer is yes it is a good deal.
Various other groups had a look....but decided they had better things to do than make a bid for it.
So if you were to ban Virgin from the bid process then the result would be that no one would be bidding for it.....which means that in effect Northern Rock is worth zero.

Exactly.. something is only worth what someone will pay.

caveat_emptor

crazyguy wrote: »

Yes I do pay tax and a fair amount to boot but once it has been taken from your income it is no longer yours therefor you have lost nothing here so I do not understand the need for a rant about it.

What a strange way to look at the public finances. You pay your tax but don't give damn how it's spent because it's no longer yours.
The Government needs more people like you.