Northern Rock to be Nationalised

Stavros_3

nicko33 wrote: »

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

Thats why the the Senior directors have gone. But does this have a wider picture for other banks. Lets not be coy, the financial situation is not that good, I am looking forward to watching the FTSE tomorrrow to see what happens. I have substantial savings in 2 main banking institutions way over the 35k safety net and I am feeling a tad uncomfortable. If the NR can go tits up, whats to say others won't go the same way?

ffacoffipawb

ormus wrote: »

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

That makes him our first ever Sub-Prime Minister.

JayTee99_2

nicko33 wrote:

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

let's not get back into the blame game,
oh well, alright then, if you insist

no-one comes out of this clean, be it some NR management, the Government/Treasury, BOE and most definitely the FSA.
Gordon Brown had 10 years as chancellor to prepare for this event (failing bank), yet seemed to be out of control of events, despite all the warnings, and dithered.

i personally believe much more could have been done to have prevented the 'run' starting. Once it did start they again dithered for a couple of days, by which time it was too late, game over.
They are now putting measures in place to prevent future runs, but the question to ask is why weren't they already there?


and hey Stavros, rest easy, surely the message from all this is that the government won't allow another failure, so you should be safe.

Stavros_3

JayTee99 wrote: »

and hey Stavros, rest easy, surely the message from all this is that the government won't allow another failure, so you should be safe.

Are you seriously asking me to trust this government?

nicko33

JayTee99 wrote: »

no-one comes out of this clean.

You left out the media. If anything caused the queues outside the branches, it was the media hype.

JayTee99_2

@nicko33
yep, you're right, i forgot the media, they also annoyed me, but really the situation should have been handled better before it got that far

but Peston is having another field day on BBC News24 at this moment grrrrrrr :mad:




@stavros
no, i don't trust them either
but there isn't any way they can allow another NR this side of an election

bristolleedsfan

[quote=but Peston is having another field day on BBC News24 at this moment grrrrrrr :mad:

[/quote]



Heres the Press Release

http://www.hm-treasury.gov.uk/newsroom_and_speeches/press/2008/press_16_08.cfm

JayTee99_2

Yep, i do find Robert Peston the Beeb's Business Editor a tad annoying




Thanks for the link, BLF

interesting to note that although everyone else is talking about Nationalising, the word nationalised does not appear in that document, yet the words public ownership appear 11 times
that gives some idea of the politics involved here, i suppose.

purch

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

No........

It hit £12.00 a share because people THOUGHT it was a very successful PLC

The reality is somewhat different.....

The fact of the matter is that nobody was prepared to make a bid for Northern Rock, that would even be a 'Good deal for Tax Payers' , let alone value the business anywhere near the crazy levels of this time last year.

Nationalisation was the only option left.

i do find Robert Peston the Beeb's Business Editor a tad annoying

The guy is a complete moron !!!

Along with Geoff Randall and Evan Davies........two more idiots who know nothing about the subject !!!

bristolleedsfan

purch wrote: »

The fact of the matter is that nobody was prepared to make a bid for Northern Rock, that would even be a 'Good deal for Tax Payers'


quote]


Most Banking Shares are at near mega lows, problem for the bidders was that the Government wanted to be paid back after 3 Years whereas paying back after 5 Years was an apparent more feasible option from a commercial point of view.