Thursday, Dec 13, 2007
Northern Rock
Bloomberg: Northern Rock Names Kuipers as Chief, Takes Writedown
The total possible writedowns are £281m, or about two thirds the bank’s current market cap, which breaks down as follows:
- a charge of £118m on SIVs, which were valued as of September 14 at £319m
- a writedown of £32m on three SIV-lites, originally worth £35m - despite one of the vehicles being restructured into a cash CDO in early September: potential writedown of £131m on Northern Rock’s CDO portfolio, marked to market from £167m to £36m at the end of November.
" Get that? CDOs are worth 22% of face value. As for the SIVs, well basically the decimal point was in the wrong place." comment from FT markets live. Northern Rock has to hang everything out to dry, how many of these CDOs are being hiddenaway?
Posted by happyrenterz @ 01:12 PM (344 views) Add Comment
5 Comments
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1. planning4acrash said...
I can't believe that my STUPID government bought this REDICULOUS company for me! Its like your cat bringing in a bubonic plague infested dead rat as a present.
2. Spellmaster said...
I can bite my tongue no longer.
I feel I must speak.
I have sat on the sidelines too long now.
P4C - It is Ridiculous
3. Mark said...
this should be closed and stripped of any assets left...
4. cyril said...
P4c - It gets worse - if you read the government's recent housing green paper, it's full of enthusiasm for Northern Rock-style morgage lending. The green paper was published just before the NR meltdown and will be swiftly forgotten about no doubt.
5. jack c said...
From moneyfacts today - NR has announced that all customers who held a savings account on 1.12.07 and who keep their money invested until 1.3.08 will receive a 0.50% gross pa bonus during the months of January and February.
Contrast this with the £360K pay off Adams Apple is getting for leaving today !