" Woes Of Mortgage Lender Northern Rock "

[Realistbear]

http://www.telegraph.co.uk/money/main.jhtm...5/cnrock115.xml

Woes of mortgage lender Northern Rock could affect borrowers

By Philip Aldrick, and Myra Butterworth

Last Updated: 1:18am BST 15/08/2007

Just how much trouble is Northern Rock in? A glance at the mortgage lender's share price, which fell 12pc after a profits warning in June and a further 13pc since, would suggest the answer is a heck of a lot.

Comment:

Warning looks inevitable

Banks reporting season: the full results

Hedge funds are shorting the shares and analysts have been chorusing "sell" for days. To make matters worse, long-term bear Credit Suisse went a step further yesterday and forecast another profits warning, saying: "We think there is a chance Northern Rock will further downgrade full-year guidance at some point soon."

All the poisons that have been lying in the mud are hatching out in quick succession. House prices are toast.

[nohpc]

All the poisons that have been lying in the mud are hatching out in quick succession. House prices are toast.

You should make a new punch line

[sunonmars]

http://www.telegraph.co.uk/money/main.jhtm...5/cnrock115.xml

Woes of mortgage lender Northern Rock could affect borrowers

By Philip Aldrick, and Myra Butterworth

Last Updated: 1:18am BST 15/08/2007

Just how much trouble is Northern Rock in? A glance at the mortgage lender's share price, which fell 12pc after a profits warning in June and a further 13pc since, would suggest the answer is a heck of a lot.

Comment:

Warning looks inevitable

Banks reporting season: the full results

Hedge funds are shorting the shares and analysts have been chorusing "sell" for days. To make matters worse, long-term bear Credit Suisse went a step further yesterday and forecast another profits warning, saying: "We think there is a chance Northern Rock will further downgrade full-year guidance at some point soon."

All the poisons that have been lying in the mud are hatching out in quick succession. House prices are toast.

Really aint surprised at Northern Rock, they have been one of the loosest lenders along with Barclays for years. I call them subprime banks. Barclays was one you could throw a dead 82 yr old grannys name at and they would give you a credit card.

Northern Rock is known as one bank you would go to if you needed easy credit. It all comes back in your face eventually.

[OnlyMe]

Northern Rock are heavily reliant on other people buying their dirty washing.

http://investing.reuters.co.uk/news/articl...SE-UPDATE-1.XML

Around 20 billion pounds of Northern Rock's Granite RMBS bonds would be redeemed over the next two years, and nearly 10 billion pounds of bonds may have to be issued over the next 12 months to support asset growth, analyst Jonathan Pierce said in a note to investors.

[Converted Lurker]

With the UK more than a year behind the US,

this suggests they are going to have even more serious problems before the slide is done

do you envisage a NR or two to go bust? I can't see any UK lenders gonig to the wall, consolidation, amalgamation, brand stopping trading whilst put under custody of larger parent etc...is the worst we'll see I reckon.

[Realistbear]

http://www.telegraph.co.uk/money/main.jhtm.../15/ccom115.xml

Northern Rock and a hard place

The bulls will reckon no news is good news, the bears that the silence is more ominous than optimistic. Credit Suisse added to the bearish voices yesterday, pointing out that current guidance on profits from the lender are predicated on £50m-£60m of pre-tax profits on asset sales, disposals that are unlikely to generate the same values as they did in the first half of this year.

The market is seeking reassurance, but I fear there won't be any forthcoming.

[sossij]

You should make a new punch line

I beleive he did try ... something about a spider hanging over a bonfire or somesuch... I thought it quite good. Didn't catch on though.

[stuckmojo]

Northern Rock and a hard place

this is the sort of punchline we expect from you RB!

This is no surprise anyways. Northern Rock's playground IS nuclear waste... They'll be the first to suffer.

[OnlyMe]

Have a look at the share price. NR took off after the BOE purposely reignited the loose lending bubble and companies like NR relaxed their lending criteria yet again and lent to all and sundry.

Now, the share price is back to where it was in 2005 and below.

UK, different country but exactly the same disease as the US, all sponsored by the central bank to paint the tape during their controller's politically weak periods.

[Realistbear]

I beleive he did try ... something about a spider hanging over a bonfire or somesuch... I thought it quite good. Didn't catch on though.

I can't claim either punch line as my own. The "poisons in the mud" is a quote from Emperor Claudius in the series of "I Clavdivs." The Spider dangling over the fire from a thin web is from the famous sermon of Jonathan Edwards (c. 1760) "Sinners in the Hands of an Angry God."

[apom]

Northern Rock used to be everyones favourite lender.

The company of choice for the 10 times salary self cert interest only lie to buy monkeys....

They would loan half a million pound to an unemployed dead cat.... With a finme collection of CCJ's

I think memos went round if they actually managed to lend at normal multiples....

"Missed opportunity, why was this person not sold more debt?"

Barclays were idiots, these people were cretins...

Many of their customers will be ruined, but enough debt monkeys will keep paying for them to survive

[OnlyMe]

Yes, I could believe, as long as somebody else was left to carry the can when it all blew up.

All this occured under the scrutiny of the BOE, who have a remit to ensure financial stability.

Where's your stability Mervyn? Why have you allowed banks to trash the financial system and the rest of the economy? Why have you allowed this poison to seep into ordinary peoples' pension funds?

http://news.bbc.co.uk/1/hi/business/3478635.stm

Self-cert mortgages could skew market

Documents

Many lie about their income in their mortgage application

Could you believe that a bank would invite customers to defraud it? It may sound incredible, but that is what some of Britain's biggest mortgage lenders have in effect been doing.

[Leonard Hatred]

http://news.bbc.co.uk/1/hi/business/3478635.stm

Self-cert mortgages could skew market

Documents

Many lie about their income in their mortgage application

Could you believe that a bank would invite customers to defraud it? It may sound incredible, but that is what some of Britain's biggest mortgage lenders have in effect been doing.

February 2004!

I can't wait for the fallout over this lot if it all goes Tango Uniform. I'm pretty sure that it will involve only the borrowers going to prison, though.

[I Told You So]

At what point will it dawn on the the UK media that we do have our own subprime disaster?

[sossij]

I can't claim either punch line as my own. The "poisons in the mud" is a quote from Emperor Claudius in the series of "I Clavdivs." The Spider dangling over the fire from a thin web is from the famous sermon of Jonathan Edwards (c. 1760) "Sinners in the Hands of an Angry God."

I did much prefer the spider one.... I felt quite sorry for him. Hope he's ok now

[panholio]

At the risk of sounding like a plonker what happens to the "customers" of a company such as Northern Rock if they go bust?

I don't have a mortgage but do have a small unsecured loan from them.

[sak]

At the risk of sounding like a plonker what happens to the "customers" of a company such as Northern Rock if they go bust?

I don't have a mortgage but do have a small unsecured loan from them.

Believe the assets (loans on their books)would be sold to another bank and you would owe them the debt.

[harris]

It is indeed a crisis for Northern Rock who are going to miss their target of 15% growth during the financial year.

I'd start worrying about their future if they begin to report losses, but not before then. As regards their debt book, their percentage of bad debts is below the industry average and they typically lend to only 75% of market value on self-cert mortages.

[eric pebble]

Really aint surprised at Northern Rock, they have been one of the loosest lenders along with Barclays for years. I call them subprime banks. Barclays was one you could throw a dead 82 yr old grannys name at and they would give you a credit card.

Northern Rock is known as one bank you would go to if you needed easy credit. It all comes back in your face eventually.

They are total scub@gs -- they are the prime example of lenders who lend fr@udulently - and cover it up to look ok; They are one of the main perptrators of the World's Greatest Ever Pyramid Selling Scam - the so-called "housing Market".

I hope they all rot in hell.

http://www.housepricecrash.co.uk/forum/ind...15&start=15

[eric pebble]

Really aint surprised at Northern Rock, they have been one of the loosest lenders along with Barclays for years. I call them subprime banks. Barclays was one you could throw a dead 82 yr old grannys name at and they would give you a credit card.

Northern Rock is known as one bank you would go to if you needed easy credit. It all comes back in your face eventually.

They are total scumb@gs -- they are the prime example of lenders who lend fr@udulently - and cover it up to look ok; They are one of the main perptrators of the World's Greatest Ever Pyramid Selling Scam - the so-called "housing Market".

I hope they all rot in hell.

http://www.housepricecrash.co.uk/forum/ind...15&start=15

Edited August 15, 2007 by eric pebble