Friday, Feb 22, 2008
Exclusive
Guido Fawkes: The myth of the "quality loan book"
Alistair Darling and Gordon Brown chant the same mantra, the government's investment is backed by the assets of the Northern Rock, "a high quality loan book", which they claim has been verified by the FSA - as if the FSA employs surveyors and has the competence to take a view. Anatole Kaletsky said this was a delusion. Now Guido has the numbers to prove it.
In February NR had the highest rate of repossessions of any mortgage lender, averaging 40 every working day.
Posted by little professor @ 08:30 AM (723 views) Add Comment
12 Comments
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1. little professor said...
2. Marcosscriven said...
What a load of old nonsense!
Firstly, these are absolutely figures, not percentages
Secondly, a possesion claim is not a repossesion - there's still time to sort things out
Thirdly, it may well just be that NR have a moe agressive policy on defaults
3. Prof said...
So, the FSA have verified NR`s loan book. Is this the same FSA that stood by as NR operated their "buisness plan" that got them into all this trouble ? I`m sick of hearing Labour MPs blame the NR fiasco on "worldwide financial problems", when we know that NR would probably be OK if they hadn`t been operating "at the edge".
A lot of people on hpc.co.uk were questioning the actions of NR, well before they folded, yet people who had the ability to do something about it let them carry on. I wish I shared Darling`s confidence in getting the taxpayers money back.
4. Landedgentry said...
Funny Subprime cartoon :
http://docs.google.com/TeamPresent?revision=_latest&fs=tru e&docID=ddv7hj34_03774hsc7&skipauth =true
5. Anne Summers said...
If they were normalised percentages it would mean Northern Rock was faring even worse relative to market share.
6. it_is_going_with_a_bang said...
Marc...
Figures and not percentages? That is a ridiculous thing to say since anyone can spend 2 mins and get a percentage out of it?!
I would make the point again that it also does not take into account market share either - perhaps making it look worse.
You could also argue that now NR is Gordon's hands - and we are not allowed to see whats in his hands ! - that repossessions will be from this point avoided at all costs to keep the figures looking good.
I would also point out that a possession claim amounts to much the same as repossession you are playing with procedure and words.
This post just makes the point that the loan book of NR is very dubious. From personal experience of friends etc it is very much the case.
The sad fact is that the only way the public could ever know the truth is a full and open ongoing audit of what is going on at NR. But since the government is passing an exception in law so that they can hide the goings on at NR it is hardly suprising that people think they are being lied to.
7. housing carbuncle said...
The fact that a cover up is going on with tax payers money is a discgrace. There is nothing but lies, corruption, dishonesty and scandal associated with this. All those involved should be sacked, tried and put in prison.
8. wdbeast said...
iigwab
“a full and open ongoing audit of what is going on”
Although I totally agree with you, unfortunately this cannot be done for any bank, let alone the NR.
Any such audit would show that the banks are basically bust and are still holding loads of dodgy exposure off their books.
The reason we are not allowed to know is that if we did, the whole banking industry would implode.(IMHO)
9. Marcosscriven said...
it_is_going_with_a_bang said...
Well if you can go and find the total number of mortgages issued by five different companies, in two minutes, then be my guest. I certainly couldn't do it that fast.
10. Lloyd said...
If NR had a "High Quality Loan Book" then the goverment would not need to exclude it from the Freedom of Infomation Act would they?
I suppose it a case of foll some of the people some of the time. What they fail to realise is that it is not possible to fool the real people that count. For now I think the goverments only focus is to prevent another run on NR or other failed or failing banks!!!
11. stillthinking said...
The Labour party nationalises a bank and goes on to make a huge loss.
Does this need evidence? Do we need to look at a chart?
Ex-political lecturer Brown attempts to manage 100 billion in assets, pitching his wits equally against international bankers. But ! Shock ! He makes a massive loss ! OMG ! Completely unexpected !
12. renting2 said...
He's already lost Granite, what is there left?