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RBS has lost all of the taxpayer bailout

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Comments

  • antrobus
    antrobus Posts: 17,386 Forumite
    Thrugelmir wrote: »
    Until the asset book is finally liquidated then the outcome is uncertain. ...

    Uncertainty is a standard feature of any loan book.:)
    Thrugelmir wrote: »
    ....Running down a closed book becomes increasingly expensive the smaller it becomes as well. ...

    True. But I would imagine that when the time comes, UKAR will simply offload the admin to someone else. There are companies out there willing and able to do so.
    Thrugelmir wrote: »
    .. NR didn't shall we say have the most stringent of underwriting during it's peak lending years of 2003-2008.

    Agreed. But UKAR is reporting lower arrears levels etc. I see no reason to worry unduly at the moment.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 2 March 2014 at 12:39PM
    antrobus wrote: »

    Agreed. But UKAR is reporting lower arrears levels etc. I see no reason to worry unduly at the moment.

    Low interest rates on interest only mortgages. Hardly surprising.

    Much was said many moons ago on the topic. (Treasury report into NR of 2008 is worth a read). So I'll leave you with the question of why Northern Rock was nationalised. Rather than merely provided with a loan to enable it to trade on and left as a quoted company.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    antrobus wrote: »
    Uncertainty is a standard feature of any loan book.:)


    ,

    Very true but even more so with one put together by those where risk appreciation was severely tempered by hungry salesmen. Here today gone tomorrow.

    antrobus wrote: »


    Agreed. But UKAR is reporting lower arrears levels etc. I see no reason to worry unduly at the moment.

    There is no need to worry as we can do absolutely jack about it regardless of the outcome.

    Apart from zero interest rates and extended forbearance where necessary.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • antrobus
    antrobus Posts: 17,386 Forumite
    Thrugelmir wrote: »
    Low interest rates on interest only mortgages. Hardly surprising. ...

    Why this obsession with interest only mortgages? What proportion of the remaining loan book do you think is interest only?
    Thrugelmir wrote: »
    ..... So I'll leave you with the question of why Northern Rock was nationalised. Rather than merely provided with a loan to enable it to trade on and left as a quoted company.

    That's an easy one. Because the scale of losses recognised in 2008 and 2009 were sufficient to wipe out the shareholders equity. Northern Rock could not have continued to trade without a substantial capital injection. In the circumstances prevailing at the time, one doubts whether anyone other than the government would have been willing to come up with the capital.
  • antrobus
    antrobus Posts: 17,386 Forumite
    grizzly1911 wrote: »
    ....There is no need to worry as we can do absolutely jack about it regardless of the outcome.....

    We "can do absolutely jack about" most things that are discussed on this forum. Hasn't stopped anybody so far.:)
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    antrobus wrote: »
    We "can do absolutely jack about" most things that are discussed on this forum. Hasn't stopped anybody so far.:)

    There is a difference between banter and worrying about anything that is written on this forum, it is more light entertainment, in the guise of The Comedians.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    antrobus wrote: »
    We "can do absolutely jack about" most things that are discussed on this forum. Hasn't stopped anybody so far.:)

    There is a difference between banter and worrying about anything that is written on this forum, it is more light entertainment.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 2 March 2014 at 11:41PM
    antrobus wrote: »
    Why this obsession with interest only mortgages? What proportion of the remaining loan book do you think is interest only?

    It's where the inherent risk lies within NR's lending book. Poor quality lending on the whole.

    Not an obsession. It's an issue that has yet to be resolved.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    antrobus wrote: »
    That's an easy one. Because the scale of losses recognised in 2008 and 2009 were sufficient to wipe out the shareholders equity. Northern Rock could not have continued to trade without a substantial capital injection. In the circumstances prevailing at the time, one doubts whether anyone other than the government would have been willing to come up with the capital.

    So making profits now. But merely repaying the sins of the past then. As with RBS yet to return anything to UK taxpayers.
  • Masomnia
    Masomnia Posts: 19,506 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    AFAIK NR has been gradually paying off its loan to the UK government.

    Pretty sure the 'bad' bank has been profitable whilst the 'good' bank has been loss making. Funny old world.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
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