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Government Will Use Northern Rock To Boost Lending

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http://www.telegraph.co.uk/finance/newsbys...st-lending.html

The plan would come alongside the creation of a state-owned "bad bank which will house the major lenders' toxic assets. The Government will also unveil plans to implement Sir James Crosby's proposal to guarantee new loans to homebuyers and businesses.

When the Government nationalised Northern Rock in February last year it imposed strict limitations on the new lending of the Newcastle-based lender so it did not fall foul of the European Union's rules on state aid. Capping Northern Rock's lending also meant it could make large repayments on the £27bn the Government loaned it.

However, it is understood that the Treasury has been working on a reversal of this policy. Ministers now believe the bank presents an opportunity to increase lending as many other lenders have cut the amount of business they are doing.

The plans come as the banking sector suffered another dramatic day on the stock market. Barclays lost a quarter of its value, leaving it down more than 40pc on the week. Shares in rivals were also hit, with Royal Bank of Scotland sliding 13pc to 34.7p, Lloyds TSB down 5pc to 98.4p and HSBC off 2pc to 535p.

The final hour marked a dramatic reversal of the day's earlier trading which had seen Barclays' shares up 5pc and RBS rise 9.5pc on hopes governments on both sides of the Atlantic will again bail-out the battered sector.

Barclays attempted to shore up confidence with a statement after the market closed in London, saying that the board expected its full year profits for 2008 to be "well ahead" of analysts' consensus of £5.3bn. These profits would be achieved after all write-downs on bad debts, the bank said.

Barclays also said its capital ratio would be 9.5pc and its equity tier-one ratio would be 6.5pc.

Barclays said of the dramatic fall in its shares: "We know of no justification for the fall in our share price. We are fully aware of our reporting obligations. We have not said anything."

............

The Prime Minister yesterday indicated he was readying fresh action to thaw out the financial system and attacked the past "irresponsible" lending of British banks now being supported by the taxpayer.

The new spin is everywhere that it's down to UK banks lending irresponsible aboard. :lol::lol:

I knew this was going to eventually happen the temptation to use the Rock in this way was far too great for someone as economically adept as Ponzi Brown. He can now personally fix the UK economy in his own way and prove to everyone the past 10 years was not an illusion. We will all now be able to marvel at his financial alchemy which will prove once and for all debt is wealth.

100% mortgage loans to make a return?? Along with 6x salary?

Hopefully the EU would move to stop this but I suspect national security interests will side step this and Ponzi Brown will get to make the train crash even bigger.

"Ministers now believe the bank presents an opportunity to increase lending and to increase votes for the next general election."

This is how I think this sentence should have looked.

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http://www.telegraph.co.uk/finance/newsbys...st-lending.html

The new spin is everywhere that it's down to UK banks lending irresponsible aboard. :lol::lol:

I knew this was going to eventually happen the temptation to use the Rock in this way was far too great for someone as economically adept as Ponzi Brown. He can now personally fix the UK economy in his own way and prove to everyone the past 10 years was not an illusion. We will all now be able to marvel at his financial alchemy which will prove once and for all debt is wealth.

100% mortgage loans to make a return?? Along with 6x salary?

Hopefully the EU would move to stop this but I suspect national security interests will side step this and Ponzi Brown will get to make the train crash even bigger.

"Ministers now believe the bank presents an opportunity to increase lending and to increase votes for the next general election."

This is how I think this sentence should have looked.

If they do then it won't take long for foreign investors to lose confidence in Sterling - hyperinflation to follow shortly afterwards.

Of course Gordon will be viewed as a hero in the 'breakup boom' that precedes the hyperinflationary bust - so he should get in and then in the ensuing chaos declare a state of emergency - just in time for him to declare himself head of an all party crisis government (code for dictator).

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At the bottom of the article ..............

The Prime Minister yesterday indicated he was readying fresh action to thaw out the financial system and attacked the past "irresponsible" lending of British banks now being supported by the taxpayer.

FFS

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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