What's likely to have happened with our Northern Rock shares?

antrobus

cosmicobserver wrote: »

T They agree with the 2012 estimate of £ 12 Billion surplus.....

There is no surplus.

In 2012 this is what the National Audit Office had to say

UKFI currently expects the taxpayer to recover the loss on the sale of Northern Rock plc, all the cash used to rescue Northern Rock plus its associated finance cost over a number of years

However, there may be a net present cost of £2 billion if risk and deferred proceeds are considered

http://www.nao.org.uk/wp-content/uploads/2012/05/009848-001-Northern-Rock-Book-Exec-summ.pdf

So the 2012 position was that there was a £2 billion deficit.

antrobus

cosmicobserver wrote: »

... NO BANK CAN SURVIVE A RUN.

Very true. Just look at the Northern Rock. Dead as a dodo.:)

cloud_dog

antrobus wrote: »

An illiquid bank is a dead bank.

Perhaps it's just sleeping <<sorry couldn't resist>>

antrobus

cloud_dog wrote: »

Perhaps it's just sleeping <<sorry couldn't resist>>

It's pining for the .....

What do banks pine for?

Mistermeaner

frauds

pining for the frauds

dengrainger

Bowlhead,
I don't agree with your conclusions, but, you put your argument well enough.
Would you like to join our Action Group, I am certain you would be a valuable asset,
And we haven't any of them left .

I would have a degree of sympathy with your argument s if it weren't for 2 things:-

(1) The Bank Run , caused by a leak from within Government (why?) and not helped by the Government's painfully slow action to review and announce protection for savers' deposits...no Bank can do well after that surely, and the extra huge borrowing needed from the taxpayer (caused by the Taxpayers' representatives?) was to largely to replace the £18 Billion removed by the panicked queues in just 3 weeks.

(2) the Government had expensive professional advice as to likely outcome of the expropriation action, including a forecast of a substantial profit - which is now materialising; I don't blame them for taking the action they decided upon - if it was to secure future profits, but I do feel that the shareholders who lost everything by the decision - without being able to effect it - were unfairly treated.

Still it was not the first time one section of the populous suffered whilst another got an advantage, nor will it be the last I am sure.

One just has to hope that we are not really some kind of 'banana republic' and that, sometime somewhere the much espoused 'morality', 'values' and 'fairness' by politicians will eventually be visible in the running of the country.

I know, I know, lots of pigs flying by....

Never mind , we fight on.

Thanks for your contributions

Thrugelmir

dengrainger wrote: »

was to largely to replace the £18 Billion removed by the panicked queues in just 3 weeks.

Get your facts right. Wasn't the cash withdrawls that caused the liquidity crisis. The credit crunch had already started some weeks previously. NR's business plan was exposed to be what it was. Unsound.

cloud_dog

Ummmm.....

Gadfium wrote: »

Unfortunately, despite bowlhead99's excellent post, I'd wager that the same drum will get banged again.

dengrainger

Thrugelmir.
You are quite a nice person, aren't you?
And inaccurate, so why should anyone listen to your carping.
Are you saying then that that figure was not withdrawn?

Do you recall that without that crippling run, Applegarth asked for a relatively small contingency facility - the right and proper duty of the B of E under LOLR ? Do you really think that with that 'normal' quiet support the Rock would not have stabilised and stayed profitable and a decent big employer in the NE area? Do you really feel that the Rock Board would not have seen the light and sorted things, if left alone?

When a company goes, effectively to its bank, for a contingency of 4% of its assets, in confidence, because of a liquidity problem, caused by wholesale markets because of fears not about the company itself but the sector in general, the last thing it needs is a Government initiated leak causing the biggest and most damaging bank run in over a 100 years....

As 'Cosmicobserver' rightly said earlier, no bank could be expected to survive that challenge. ..but the Rock did! Get it?

It is fair testament to the very good quality of the Rock assets (& no way reflective of the expertise of , and management of, the seized company by HMG) that HMG will reap the benefit in cash.

Dirty money they will receive, unless they recognise the unfairness.
And you really should, but you won't .

dengrainger

And, re Cloud-dog.
Didn't take much predicting, really.
I have banged the drum for over 7 years, unpaid as a volunteer, spending massive hours of time and also loads of my own personal (limited ) cash...much to my wife's disgust I might add.

And, yes, I and my volunteer committee colleagues will go on banging the drum, for as long and as loud as it takes; you see, we believe in fair play.

What has your effort and contribution been, apart from remarks?