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How would you stimulate the uk economy?
Comments
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Thrugelmir wrote: »NR or NRAM? There's a difference.
4.6% of NRAM's loan book is currently more than 3 months in arrears.
Far higher than the average across all CML members.
Are you being deliberately disingenuous or just ignorant?Northern Rock Asset Management (NRAM) saw underlying profit before tax rise from £191m in 2010 to £790m in 2011.
This resulted in a 145% increase in pre-tax profits at the company behind NRAM and Bradford & Bingley (B&B) to £1.09bn.
UK Asset Resolution (UKAR), which was set up in October 2010 to operate the two banks, had reported underlying pre-tax profit of £444.1m in 2010.
Which just goes to show how absurdly profitable mortgage lending is for the other CML members.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Thrugelmir wrote: »The Company may be worth £500k as a going concern. In windup the value diminishes rapidly. As without the Directors there's no business.
That's nice and all, but I said asset value, not book value as a going concern.
The 500K comprises current asset disposal value only, the business valuation as a multiple of EBITDA would be far higher.
You of all people should understand the difference.Highly unlikely that £500k of post tax profit has been reinvested into the business.
Around 250 was post tax profit re-invested into the business. The rest was assets purchased through the original directors investment.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Are you being deliberately disingenuous or just ignorant?
Which just goes to show how absurdly profitable mortgage lending is for the other CML members.
On £85 billion of lending. That's a pretax margin of around 1.28%.
Absurdly high?
Marks Spencer returned a pre tax margin of 8.05% last year. (£781 million profit)
Are you complaining about the price of their products?
No.
Ignorance is no excuse.
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HAMISH_MCTAVISH wrote: »
The current absurd behavior of the banks is jeapordising the future of our economy.
People should be outraged.
Not making excuses for them...
Perhaps you should go into business as a business bank?
They seem to be leaving a lot of money on the time.0 -
Thrugelmir wrote: »On £85 billion of lending. That's a pretax margin of around 1.28%.
So what?
It's the "bad bank"....
The worst of the worst, in terms of UK mortgage lending.
And it STILL makes a profit of 1.28% for the bank, which is really just a glorified middleman.
Don't forget that profit is calculated AFTER cost of funding.Absurdly high?
For sitting on your ar5e as the payments roll in, probably so.Marks Spencer returned a pre tax margin of 8.05% last year. (£781 million profit)
Are you complaining about the price of their products?
:rotfl:
Sorry, did you really just try and compare holding a loan book of the worst mortgages ever written in the UK, with actually running a successful business?
:rotfl:Ignorance is no excuse.
Precisely. :cool:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Radiantsoul wrote: »Perhaps you should go into business as a business bank?
They seem to be leaving a lot of money on the time.
I did.
I invested 20K in a business angel group with a dozen other members of my club some time ago.
We understand businesses, and we understand how to manage risk.
So far our default rate is precisely zero.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »I did.
I invested 20K in a business angel group with a dozen other members of my club some time ago.
We understand businesses, and we understand how to manage risk.
So far our default rate is precisely zero.
Good luck, I mean that sincerely. But that is not going to be a scaleable business model for banks with billions of pounds of deposits to invest.0 -
HAMISH_MCTAVISH wrote: »And it STILL makes a profit of 1.28% for the bank, which is really just a glorified middleman.
Well it has to generate cash to repay the £49 billion funding loan from the Treasury.
Which of course is in the taxpayers interest.0 -
Radiantsoul wrote: »But that is not going to be a scaleable business model for banks with billions of pounds of deposits to invest.
Sorry, but I really don't know where you get this idea from.
Retail banking operations are designed to do exactly that....
Deal with a lot of small business customers, get to know their businesses, and lend money to them. It's why banks employ business account managers.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Thrugelmir wrote: »Well it has to generate cash to repay the £49 billion funding loan from the Treasury.
Which of course is in the taxpayers interest.
Profit is calculated after funding costs.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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