Thursday, Jan 22, 2009
El Gordo tries to Save the UK and the World (again).
Reuters: UK may inject 10 bln pounds into Northern Rock-report
Gordon Brown is considering injecting 10 billion pounds into Northern Rock to use the nationalised bank to ramp mortgage lending levels.
Posted by enuii @ 11:41 PM (625 views) Add Comment
8 Comments
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1. Crunchy said...
About 5 billion pounds of new equity could give Northern Rock the firepower to do about 50 billion pounds of new lending, providing the capital is not eroded by bad debts, it said.
crunchy- AND they don't create the interest. The debt based economy must continue to expand whilst the quality of life for the majority contracts.
5 billion = levered = 50 billion + interest ?% Can you see where we are ultimately going with this system Mr (save the world) Brown?
2. sneaker said...
Presumably that'll barely stretch to cover the repossession department's bonuses?
3. paul said...
Treasury officials have been liaising with Brussels as they need a waiver from European Union state aid rules, the newspaper said.
Another example of where the UK has to be saved from its leaders by Europe.
The last time this happened was the 48 hour working week exemption. The time before that was police holding DNA from released suspects.
Lets hope Europe can do something this time again.
4. little professor said...
"Privately, something close to desperation is starting to develop inside government. After watching the slide in bank shares on Friday, one cabinet minister did not altogether joke when he said: "The banks are f-cked, we're f-cked, the country's f-cked."
- The Guardian, Jan 19th, Labour stakes its reputation on second gamble
http://www.guardian.co.uk/politics/2009/jan/19/economy-banking
5. little professor said...
6. bystander said...
So why is The Crock giving its 'deserving' employees a 10% bonus if they still need massive tax payer bailouts???....and more importantly why is GB and HMG allowing them to do so?.....and surely this extra bailout is just the taxpayer giving back more than the Crock has itself paid back to the taxpayer. Financial minds = self serving brilliance, government minds = self serving dullards.
7. it_is_going_with_a_bang said...
"The British government is considering injecting as much as 10 billion pounds ($13.80 billion) into Northern Rock to use the nationalised bank to ramp up mortgage lending"
Should read:
"The British government is considering injecting as much as 10 billion pounds ($13.80 billion) into Northern Rock to use the nationalised bank to try and avoid humiliation at the next general election"
So they got a 10% bonus for doing 'less' business and now he's thinking of injecting this money to convince and enable them to do business??? Is there any doubt now that this is government run?
8. a saver said...
Shoudn't we be organising a petition against this bailout madness (not just this particular one)? Any ideas?
"Treasury officials have been liaising with Brussels as they need a waiver from European Union state aid rules, the newspaper said".
Let us hope that Brussels says no! These rules are there for a reason, but GB doesn't care.