Friday, Mar 20, 2009
And the rest
BBC: Rock faces 50% negative equity
"Negative equity will affect 50% of Northern Rock's mortgage loans if house prices fall by 10% this year.
The figure is revealed in a report on the nationalisation of the bank written by the National Audit Office (NAO).
The NAO says the bank continued with high-risk mortgage lending right up to its eventual nationalisation in February last year. "
Posted by phdinbubbles @ 12:17 AM (507 views) Add Comment
3 Comments
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1. paul said...
There really should be more public scrutiny of how The Crock was handled. How is it that when it was nationalised it was still selling 125% Together mortgages and everyone here knew it was a bag of shite but the government didn't?
I distinctly remember that at the time, we were told that the taxpayer would only lose a significant amount of money if house prices fell significantly. And I'm guessing 30% is significant.
Public Inquiry?
2. it_is_going_with_a_bang said...
Was it not so long ago that we were told how fantastic things were going at the Rock and how they plan to lend a whole lot more money?
3. need-a-crash said...
Back at the end of 2007 early 2008 the govt (and all the other VI's) were still trying to convince us that we wouldn't have a recession and the "dip" in housing demand wouldn't be the start of a crash - hence NR was allowed to carry on as usual.
But obviously they were wrong and we were right, the incompetence is unbelievable.