Northern Rock to be Nationalised

loopyjuice_2

Don't know if it's the right forum but the chancelor is to announce today that Northern Rock is to be Nationalised. Does this make it the safest place to keep your money? edit: sorry, just seen it in another part of the forum, please close thread.

withabix

Best decision he could make IMO.

Keeps our £55 billion in-house, so to speak.

ormus

crazy decision.
gordon brown has now lost all credibility.
what a complete farce.

planemad

From SKY NEWS: http://news.sky.com/skynews/article/0,,30400-1305760,00.html

Gorgeous_George

So, what happens to shareholders?

How long before Rich(ard) Branson sues the Government for this decision?

How will a Nationalised bank impact other High Street banks?

Shareholders have lost £4.3Billion based on Friday's closing share price.

For the record, I blame the carpetbaggers who voted to demutualise a perfectly good business.

GG

Aegis

ormus wrote: »

crazy decision.
gordon brown has now lost all credibility.
what a complete farce.

Well, the government has already pumped so much money into NRK at taxpayer expense, and nationalisation brings the loans directly back under the control of the government. If you ask me, this is the safest way for the government to proceed, and is actually quite a good decision.

Yes, it's going to annoy a lot of shareholders, but there has never been any guarantee from the government that shareholders would make money out of this stock. A lot of people tried to catch the falling knife and will suffer for it, and others held on to the stock through false hope. It's tragic if people have lost a lot of money, but investors always come after creditors in terms of priority.

hyposmurf

So is it the case that Northern Rock will be nationalised up until the goverment have their loan repaid and they have made a profit from the loan.Only a temporary measure.Whether this is the best outcome or not, at least now a decision has been reached and things can start to move forward.I'd have personally have liked Virgin to have taken it over.

facingthefuture

This was a good decision, the only fair one for the country. Frankly all shareholders must know the value of shares can go up or down and if anyone chooses to gamble on them - thats the way it works.
I think everything should be done to protect the public purse, Richard Branson is quite rich enough. :T

bristolleedsfan

Gorgeous_George wrote: »

So, what happens to shareholders?

How long before Rich(ard) Branson sues the Government for this decision?

How will a Nationalised bank impact other High Street banks?

Shareholders have lost £4.3Billion based on Friday's closing share price.

For the record, I blame the carpetbaggers who voted to demutualise a perfectly good business.

GG

U seem to be assuming that "Temporary Nationalisation " isnt just a short cut to handing NR to Virgin without a Shareholder Vote after all the aim will be to return NR to the private sector at the earliest opportunity.

The reason NR Share Price hit 12.00 + a share was because NR was a very successful PLC.

Shareholders havent lost anything atm, its not over till the fat lady sings and she hasnt even started clearing her throat yet.

Someone refresh my memory please, When Railtrack Shareholders went to court, what did they get was it the float price.? :think:

Lets not forget that a lot of NR Shareholders are both Taxpayers and Voters and that the North East is a Labour Heartland.;)

Before someone says the value of NR shares will be assessed as the value of NR without Taxpayers Support, their will be a counter argument that the value of NR shares should be the value they were at before incompetence by the authorities led to the run on NR deposits.

As NR will continue to be run as a commercial Bank, as things are at the moment The Government are stealing Shareholder Holdings. :eek:

JayTee99_2

just been watching Sky,
Ahh...so they've put the Bank into a period of temporary public ownership
phewwww....for a minute there i thought they had Nationalised it
can't bring himself to utter the old 'N' word, eh?

well, as a long time small shareholder, i can't say i'm overjoyed, but personally i would rather see that than hand it to Richard Branson at a knock down price.
i suspect they would have liked to do that, but the bad publicity following the China business trip probably made it a bit tricky politically, be that now or several months down the line.
no doubt there will now be some extremely unhappy people preparing to challenge this.

but i have to say i wasn't really expecting this outcome

nicko33

bristolleedsfan wrote: »

a counter argument that the value of NR shares should be the value they were at before incompetence by the authorities led to the run on NR deposits.

Nothing to do with NRs business model then?
Surely it was NR management's incompetence.