Good Old Adam

lypsey

Amazing admission from Adam Applegarth
It says"He told the Treasury Select Committee that the bank had planned how it would cope with a 40% fall in house prices."
http://news.bbc.co.uk/1/hi/business/7046770.stm

If they planned for it , then maybe my 50% reduction in prices is no-where near enough

tr3mor

And here's me thinking that Northern Crock thought prices would only ever go up!

(Unless, of course, his plan involved running for the Cheviot Hills and hiding under a rock.)

Generali

lypsey wrote: »

Amazing admission from Adam Applegarth
It says"He told the Treasury Select Committee that the bank had planned how it would cope with a 40% fall in house prices."
http://news.bbc.co.uk/1/hi/business/7046770.stm

If they planned for it , then maybe my 50% reduction in prices is no-where near enough

This is an example of 'stress testing'. That is, you assume various terrible things happening and then look at what happens to the business as a result. IIRC, the FSA asked the banks to stress test a fall in property prices of 40%. It implies that they think that it is very unlikely that HPs would fall by more.

IMO, what is more shocking is that NRK never stress tested their business in a credit crunch. They are known phenomena. There have been several down the years. It's not exactly a 'black swan event' (that is something completely unpredictable that you could never have planned for).

lypsey

I am still very surprised at the share price , The Sunday Telegraph and todays Telegraph have both said the if it bought out the shares are effectively worthless through dilution

Generali

lypsey wrote: »

I am still very surprised at the share price , The Sunday Telegraph and todays Telegraph have both said the if it bought out the shares are effectively worthless through dilution

They're at 212.5 right now!

I can't see how it could be politically possible for shareholders not to be wiped out (or there abouts) in the event of a takeover. You can see the headlines:

"Applegarth makes £xx million from BoE rescue" (The Telegraph)
"Northern Shock! Board members make millions in buy-out" (The Mail)
"Applegarth killed Dianna - new shock claim" (The Express)

It was bad enough when he sold his house, a completely unconnected event.

telfordwhite

THERE WILL NOT BE A HOUSE PRICE CRASH!

I base this statement on the fact that I have just sold and have gone into rental accommodation with a view to buying and I never get a break as far as money is concerned.

SquatNow

telfordwhite wrote: »

THERE WILL NOT BE A HOUSE PRICE CRASH!

I base this statement on the fact that I have just sold and have gone into rental accommodation with a view to buying and I never get a break as far as money is concerned.

Forget renting, try social squatting. Fid an empty owned by a "property investment fund" and just move in. Generally the fund wont care unless you burn the place down or something.

telfordwhite

SquatNow wrote: »

Forget renting, try social squatting. Fid an empty owned by a "property investment fund" and just move in. Generally the fund wont care unless you burn the place down or something.

You've not met my kids!:eek:

Rover

telfordwhite wrote: »

THERE WILL NOT BE A HOUSE PRICE CRASH!

I base this statement on the fact that I have just sold and have gone into rental accommodation with a view to buying and I never get a break as far as money is concerned.

:rotfl: priceless!

tr3mor

Generali wrote: »

"Applegarth killed Dianna - new shock claim" (The Express)

You forgot "Applegarth suspect in Madeline case".

tr3mor

telfordwhite wrote: »

THERE WILL NOT BE A HOUSE PRICE CRASH!

I base this statement on the fact that I have just sold and have gone into rental accommodation with a view to buying and I never get a break as far as money is concerned.

That's probably the most feasible argument I've heard for there not being a HPC recently!