Friday, Sep 14, 2007

White off

White knights line up to rescue Northern Rock: Timesonline

The reason they are bidding is that they can probably get it for a bargain basement price. Losers will be the Shareholders first (50% valuation), Savers second (as they are given a 100% upto £1000, 90% upto £30,000, and 0% thereafter take it leave it deal) and borrowers third (higher reates imposed or lose their homes).

Familar.1929? The older generation have seen this before and are taking their money out. Too late I am afraid. Opps the BOE and FSa have failed again in less that 80 yrs on!!

Posted by lloyd @ 02:39 PM (572 views) Add Comment

8 Comments

1. paul said...

23% drop? Try 32%!!!

http://news.bbc.co.uk/1/hi/business/6994328.stm

Friday, September 14, 2007 03:45PM Report Comment
 

2. su said...

I thought savers are guaranteed 100% on the first £2,000. probably a typo?

Friday, September 14, 2007 03:49PM Report Comment
 

3. mybrainhurts said...

Anyone who takes over the business will take on its assets and liabilities "as is"; it can't cap liabilities to depositors, nor re-write existing mortgages. The shareholders will suffer or not depending on what they bought for, but not the savers - they should rejoice if it is bought up.

Friday, September 14, 2007 04:01PM Report Comment
 

4. Ticktock said...

Su

You are right. 100% of first £2000 and 90% of the next £33,000 is protected by FSA compensation Scheme . No protection at all on deposits above £35,000.

Friday, September 14, 2007 04:04PM Report Comment
 

5. Lloyd said...

As this is a distress sale! Savers will not be safe, the older generation have experience of this now this generation will experience the great Bank robbery of their savings and homes. Hard to believe I know. 'Ostrich head sand in' re-order the words that is what most people have been doing!!!

Friday, September 14, 2007 04:14PM Report Comment
 

6. Bloo Loo said...

They may not take over the business, they may buy the assetts- think warranty with people like TIme direct- people bought the name, left users and creditors and warrantys behind- yes , they can come up with any deal they like

Friday, September 14, 2007 04:51PM Report Comment
 

7. Alan said...

I know its already been mentioned, but...whatever happened to those NR execs who recieved big bonuses to spot this kind of problem before the wheels fell off.

Friday, September 14, 2007 07:25PM Report Comment
 

8. C'mon Correction said...

Yes guaranteed £100% on first 2k for savings.

Saturday, September 15, 2007 01:17AM Report Comment
 

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