Northern Rock: rocking on?

[chrisch]

Originally Posted by fezboy

Can't find enough money to provide proper equipment for the troops, but easily finds more money than the Defence Budget to protect shareholders....

Rubbish.

The "rescue" if that's what you want to call it was of the depositors and mortgage holders. The shareholders have lost their shirt and may end up with as little as 1p per share.

Chris

[fezboy]

Isn't that what being a share holder is about, taking risks...

Originally Posted by chrisch

Rubbish.

The "rescue" if that's what you want to call it was of the depositors and mortgage holders. The shareholders have lost their shirt and may end up with as little as 1p per share.

Chris

[Jay]

Originally Posted by captainnemo

Pending lectures on absence of qualification: it is a matter of record that the share price of NR has collapsed, the Chancellor has made a statement on the financial situation at NR and it is similarly a matter of record that bids for the company have not been enthusiastically received.

Good God - you're still harping on. Ok then - explain why in July 2007, Northern Rock were so cash RICH that they put in a request to make an additional dividend payment to shareholders.

You know fuck all about this - your only strength is to be able to cut and paste seemingly random quotes from other places.

Your total lack of understanding as to how bad it would be for the economy as a whole if a major bank were to collapse is frankly laughable.

Yes the share price has collapsed and members of the board have resigned - for the reasons I have gone to great lengths to explain to you in very small words and uisng a crayon of your choice however you are either too stupid to comprehend or are hell bent on your own little world view.

You ARE unqualified to comment only because you have a total lack of understanding of anything within the financial world.

If you were a business that runs on credit (as ALL lenders do) and your credit source dried up, do you think this might have an adverse affect on your business? Would that have been caused by your incompetence?

Please, go somewhere else with all your crap - its becoming annoying now.

[chrisch]

Originally Posted by fezboy

Isn't that what being a share holder is about, taking risks...

Yes. It is and their risks in this instance have not paid off. The loan from the Bank of England was to protect the depositors and the idea of putting your money in a bank (in this case NR) is not to take a risk. The bailout therefore was unavoidable.

The share price currently reflects the hope that the UK taxpayer will cop for a big part of the problem by forgoing the interest payments on the loan. The new owner of NR will repay the UKP 25Bn (or however much it now is) and not the interest. That makes NR saleable as a going concern as opposed to a lame duck.

If the BoE insists on having interest on the loan then NR is virtually worthless - this is the market view and the government could (or should) take the bank into public ownership.

Either way round the amount of money we, the taxpayers, will lose is the interest not the whole 25Bn. NR is not insolvent but simply illiquid. A buy-out by a large bank that has the necessary liquidity is the best outcome. However the current share price is too high for that to happen. The financial sector is hoping to cream off the taxpayers money.

A clear unambiguous statement by the government that it will demand the interest from any new owner of NR will end the speculation and the share price will fall far enough for a take-over to occur. As far as I can see this is the only thing the government has really got badly wrong.

The tabloid misreporting of the situation and attempt to deliberately mislead people into thinking that 25Bn of taxpayers money is about to be lost is utterly disgusting and typical of the press in this country. That's the real problem not the (admittedly unpleasant) government.

Chris

[captainnemo]

A bloke with funny eyebrows stood up in the Commons the other day to make an emergency statement about the banking situation. Curiously he made no mention of the effect the media has had on the matter, nor did he say what a bang-up job Mr Applegarth has done, nor did he mention Steve McClaren.

Basically....who gives a f..........................................

So tragic that England can't creep into the European through a crack: getting beaten at home by Croatia in a crucial match sums them up. There was a time when the wearers of an England shirt played above themselves but apparently that time has passed.

Any suggestions on a replacement for that feckless flump McClaren? Mr Bean has indicated that he's not available, likewise Frank Spencer, Mr McGoo and Muffin the Mule (which is apparently no longer a criminal offence in Morocco)

[chrisch]

Originally Posted by captainnemo

...

Basically....who gives a f..........................................

...

About soccer?

Not me.

Chris

[captainnemo]

There are times when engaging in a mature debate about matters of import can persuade one that there is point to being......

....and then there are certain threads that indicate an absence of engagement. Peurile comments, intellectual gangrene and attempts to personalise (on the net for f sake).

Well, I may not be a financial expert but then neither do I have any money in a moody building society, my house is paid for and I make considerably in excess of the minimum wage without breaking a sweat. Oh yes, and my details ain't on the missing discs.....so I guess my personal details remain secure.

[Jay]

You know what - finally we agree! I've had enough - bye!

[Stesh]

Originally Posted by Jay

You know what - finally we agree! I've had enough - bye!

[Moz]

http://www.thedailymash.co.uk/opinion/columnists/northern-rock?-i-shit-'em-20071109527/