interestrateripoff Posted April 3, 2011 Report Share Posted April 3, 2011 (edited) http://www.guardian.co.uk/business/2011/apr/03/northern-rock-banking Mutualisation of Northern Rock would deliver a better payback to taxpayers than a sale of the state-owned lender, according to a study examining options for the Newcastle-based bank rescued from bankruptcy by the government in 2008.In a boost to a parliamentary campaign calling for Northern Rock to be owned by its members, analysis firm Landman Economics has concluded that, based on the stock performances of similar banks, a flotation or trade sale would not raise sufficient funds to make up the £50bn of public support pumped into Northern Rock. Through mutualisation, however, Landman says the government could recoup its bailout money via an income stream known as "profit participating deferred shares" in the bank, which made a £232m loss last year, has £22.5bn of assets and operates 70 high street branches. So it's odds on now the govt will try and sell it? Edited April 3, 2011 by interestrateripoff Quote Link to post Share on other sites
Bloo Loo Posted April 3, 2011 Report Share Posted April 3, 2011 http://www.guardian....rn-rock-banking So it's odds on now the govt will try and sell it? it wouldnt have cost the taxpayers a penny if they had let it go from day one. Quote Link to post Share on other sites
copydude Posted April 3, 2011 Report Share Posted April 3, 2011 it wouldnt have cost the taxpayers a penny if they had let it go from day one. But then it was 'fundamentally sound', wasn't it? Flashback to September, 2007In a statement the chairman of the Financial Services Authority, Callum McCarthy, insisted that the UK’s ninth largest bank was ‘solvent, meets all capital requirements and has a good quality loan book’. The FSA chief added it was ‘clear in our opinion that it should continue to be open for business.’ Separately the British Bankers' Association insisted there was no cause for concern, and in the process appeared to blame the media for much of today’s panic. Its statement said: ‘Everyone should calm down and refrain from making simplistic comments in a very complex area which just cause unnecessary worry and concern. It said: ‘The Northern Rock is a sound and safe bank and there is absolutely no reason for either mortgage customers or savers to worry. The FSA said it ‘remains confident about the industry's ability to withstand current market pressures. We are in constant dialogue with firms to ensure that they are vigilant with regard to potential risks and continue to carefully monitor developments.’ Quote Link to post Share on other sites
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