northern rock on the news begging for cash

$$$_12

Statement on their website now:

http://companyinfo.northernrock.co.uk/downloads/results/stockEx140907.pdf

apparently according to this they only do prime lending. So what's the banner at the top of this page saying then?

http://www.northernrock.co.uk/intermediaries/intermediaries_index.asp

and then there's this page:

http://www.northernrock.co.uk/intermediaries/specialist-lending/index.asp

We can now offer you and your clients a full range of sub-prime mortgage products from Niche Prime to Unlimited – a wide choice designed specifically to meet all of your needs.
NEW! Sub-Prime product range launched offering a free mortgage valuation complimenting our existing range of products.

To paraphrase Paxo - Why is this lying bank lying to me?

BobProperty

Anyone with a put option must have made a killing this morning.

dippy

MarkyMarkD wrote: »

!!!!!!?

I'm not going to repeat myself.

But as usual you don't understand the issues you are raising.

Self cert isn't sub-prime. Self-cert is self-cert.

NR don't do 100% and greater LTV mortgages. They do 95% mortgages with up to 30% unsecured loans attached. The mortgages are 95% LTV and they are securitisable (and have been securitised by them for years with no problems).

So you're saying that they lend 125% and they do self-cert and they're not subprime?

nelly_2

Their shares have fell 21% its on the BBC now

sinizterguy

If I had some spare money, I would buy NR shares right now.

Moorepart

Guy_Montag wrote: »

If I had any money in NRK, I'd queue up* to take it out - not because I think they'll go bust, just for sh1ts & giggles.


*I'd make sure I was there at 8:50 or earlier so I'm properly queueing.

Sit back and watch as the media now do our job for us.:rolleyes2

Moorepart

Generali wrote: »

The BoE acts as Lender of Last Resort.

.

The BOE obviously have no concept of sound fianancing and sound money. First encouraging the industry (actually no not industry, just commission hunting spivs) down the road of free and easy lending and then propping them when it all turns sour. The BOE deserve contempt.:mad:

craigw007

I have a mortgage with NR, not because i am a credit risk just because they had the best deal going at the time. As i see this, NR's primary market is mortgages. Given that HBOS and Abbey decided to increase interest rates recently means it has to be hitting them as well but they can ride out the storm easier because they have just as big a banking arm. Perhaps NR short sightedness in trying to get a bigger peice of the mortgage market has come round to bite them but you cant fault them for it, Every single lender is out to make a quick buck out of the consumer, just the timing was wrong.

Time will tell how this pans out but right now i am not to concerned about my current mortage deal (its only a 2 year fixed)

marcpauluk

i also read sad news article on northern rock borrowing from the BOE but i also carried on reading and it said that this was because of a shortfall in predicted profits ie they only stand to make 450-500 million this year, the only people who should be affected by this are the share holders with regards to dividend payments if my understanding is correct. this is my first post so please forgive any errs on my behalf with regards to protocol etc

WTF?_2

Moorepart wrote: »

The BOE obviously have no concept of sound fianancing and sound money. First encouraging the industry (actually no not industry, just commission hunting spivs) down the road of free and easy lending and then propping them when it all turns sour. The BOE deserve contempt.:mad:

I'm of two minds about this.

On the one hand it's disgraceful that the finance industry comes up with ever more exotic and risky products to make themselves huge amounts of money in the knowledge that at the end of the day when it all goes TU they will be bailed out for no other reason than the central bank can't afford not to bail them out.

On the other hand - if a major bank like NR crashed it would undermine the whole pack of cards that the financial system is built on at the moment which most certainly would be disastrous for us all.


What's needed is better regulation in the financial sector so we get back to sound fiscal foundations. Unfortunately, the huge finance industry in London is based upon the premise that London is just about the least regulated market in Europe. On a similar note, the deals that nearly broke IKB and Sachsen LB in Germany were carried out 'on the sly' at their offshoots in Dublin for the simple reason that they weren't subject to the scruntiny of the German banking regulators. Dublin has copied London's lead in offering a regulation-free environment to financial organisations. Makes you wonder what sort of shady stuff is going on behind the doors of 'reputable' banks and brokerages in London.

Frankly the whole system is a disgrace. Governments have given the markets carte blanche to make themselves huge amounts of money in any way they see fit and stand ready to underwrite the whole mess when it all crashes. Either directly with taxpayer-funded bailouts or (as increasing amounts of people suspect) by abandoning decades of efforts to control inflation and going ahead with inflationary policies to save borrowers' and lenders' skins.

It's pretty disgraceful. I've worked extremely hard over the last decade to build up a decent amount of savings to buy a house. Because of the 'loan hundreds of thousands to anyone with a pulse' culture house prices have rocketed to absolutely bonkers levels requiring me to borrow a huge amount - even with the deposit I have saved. Additionally, inflation will now erode my savings.

Great - I should have just borrowed recklessly and bet on the government to bail me out.