Northern Rock to be Nationalised

WTF?_2

sm9ai wrote: »

The whole situation is a joke.

Northern Rock is dead, this whole situation is the banking industries fault, let the whole industry sort itself out.

Fun times ahead.

Also lets be honest, other banks probably will run into problems if house prices continue to fall which seems quite likely.

The real problems that are going to impact Joe Public's everyday life have hardly started yet

This board is going to be an interesting place in 12 month's time. Somehow I don't think all talk of falling house prices is going to be confined to a single thread 'by popular demand' (ie by a vocal bunch of people up to their necks in property speculation) then :mad:

UK007BullDog

It has already started. A lot of people cannot remortgage elsewhere, due to property devaluations, other debts, and a lot of specialist banks/lenders have shut their doors. The average Joe does not know this as they have no high street presence to get noticed.

merlinthehappypig

!!!!!!? wrote: »

I'm annoyed that I didn't act quicker and get some of my cash into NRs extremely high interest bonds that they were offering a short while back After all, they're backed by the taxpayer which makes them as safe as NS&I.

I did.........6.9% for a whole year and a 100% guarantee:D

epz_2

wymondham wrote: »

Great .. my business is going through hard times.... could i be nationised as well please??? thought not (I'm not a bank!!)

Northern Rock was a private business - if it fails then so be it - banks are nothing special?? So, now if you run a bank it's offical - you can't kill it whatever you do as the tax payer will mop up after you...

if you own the business then the last thing you want is government to nationalised, they basicly take over the running and assets turfing you out on the street.

assuming they do wipeout the share holders whos negligance in holding the board to account lead to theis mess then it will be a cautionary tale for other banks.

frankly i think the need to decouple the branch/savings side from the mortgages, spin them off as a seperate company and keep the mortages side.

that business should have no new mortages and make remortgage terms so horrific that people looking to remotgage will move to other companys and repay the cash.

wymondham

epz wrote: »

if you own the business then the last thing you want is government to nationalised, they basicly take over the running and assets turfing you out on the street.

quite a good option considering others I've had!! :T

scooter100_2

labours so called record of 'sound financial management and competance' has now been exposed as the sham it indeed always was. this government knows no bounds when it comes to gross negligence,malfesiance, incompetance, sleaze, cronyism, and downright lies and this will be the final nail in the coffin to the nu labour project.possibly the worst government this country has ever known.a bullet would be too good an end for this shower.

subjecttocontract

What ever the Government had decided to do would have caused one or more groups to have crtiticised it.

Can anybody suggest THE solution that would have suited everyone ?

sm9ai

Search the Internet. Lots of people predicted this so why did it come as such a shock to the government.

So yeah the solution, don't lend 125% mortgages, and don't lend at 5x+ income.

Which they still seem to do :mad:

Rick62

UK007BullDog wrote: »

If NR were left to die it would have a very negative impact on our banking system and a lot of investment money would be pulled and end up abroad. Loss of jobs and that, not just in banking etc., not good for economy.

But they should have done that from day one. Also the investors should not be getting a pumper profit nor the top guys with their golden handshakes.

If Northern Rock had been allowed to die, or more acurately go into recievership, the impact on the rest of UK banking would have been minimal. Northern Rock had a capitalisation (in September) of about £2 billion, the half dozen major banks a total captalisation of about £300 billion. Also NR was a one trick pony, UK mortgages, while most banks have diversified porfolios, spanning both the UK and internationally.

The collapse of NR would have been seen as one small bank operating recklessly in one market sector and little more.

The real reason was partly political (northern jobs/votes) and partly the impact on property confidence, given that recently NR had been responsible for about 20% of uk residential lending.

Generali

This is the best possible outcome, assuming that the shareholders lose everything that is.

It means that in future, shareholders, the owners of the business, will be less inclined to allow their board to fund quite as aggressively as they will fear losing their investment.