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They Arranged To Borrow 30 Billion

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phew that will just about cover all of the depositers. but it means you and me (taxpayers) are shortly going to be taking on a load of Liar Loans onto our books...... at which point we should point out that NR is clearly insolvent and auction them off at market value.

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phew that will just about cover all of the depositers. but it means you and me (taxpayers) are shortly going to be taking on a load of Liar Loans onto our books...... at which point we should point out that NR is clearly insolvent and auction them off at market value.

no one wants to buy NR.

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Does this mean our Govt will paper over the cracks like before and perpetuate the bubble for a while longer? Perhaps until after the next general election?

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phew that will just about cover all of the depositers. but it means you and me (taxpayers) are shortly going to be taking on a load of Liar Loans onto our books...... at which point we should point out that NR is clearly insolvent and auction them off at market value.

http://www.telegraph.co.uk/money/main.jhtm...cncredit116.xml

Some City sources believe that the Bank of England could end up performing the role of an administrator to Northern Rock, buying its assets and selling them in the market.

But it is understood that if the bank's shares continue to dive in response to the crisis, when the market opens again tomorrow Applegarth will launch a fire sale of its assets.

A firesale into these market conditions.

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Does this mean our Govt will paper over the cracks like before and perpetuate the bubble for a while longer? Perhaps until after the next general election?

No it means there will be a cover up. a spin and cover. NR will be splitup as per the LTCM bailout. it will be spun as 'restructuring' or some ******** but they are 'technically' insolvent when they draw down on the liquidity line.

If northern Rock is solvent as Darling and the FSA claim. then surely they could have sold some of their 117 billion 'High Quality' mortgage book for long term Gilts which would have been acceptable as collateral at the Bank. The fact they are totaly unwilling to mark these assets to markets makes me think that their accounting is a work of total fiction not seem since someone claimed the subprime problem was 'contained'.

it is and will always and forever be a bail out. Merv knows it, and will now have to do his best to show that paper issued by his bank are promises worth considerably more than those issued by NR (shares).

shareholders will get nothing.

depositors will get 100pence on the pound.

stirling will get weaker.

Merv will have to fight for credibility.

I'm already taking a total dislike to this Darling snake. he seems to have a inflated self regard which is quite un-british.

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.......was this not the bank that did not factor into it's foward planning and currency hedging the possibility the BofE would put up it's base rate to the current kind of level......?....would you lend £30 billion to such a business.....?.........and that is before you have carried out due diligence to check their current book of assets..............they should have encouraged a takeover if the money was on the table....one would assume a potential buyer would have looked before it leapt and negotiated the price, accordingly.... :o:o:o

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.......was this not the bank that did not factor into it's foward planning and currency hedging the possibility the BofE would put up it's base rate to the current kind of level......?....would you lend £30 billion to such a business.....?.........and that is before you have carried out due diligence to check their current book of assets..............they should have encouraged a takeover if the money was on the table....one would assume a potential buyer would have looked before it leapt and negotiated the price, accordingly.... :o:o:o

yep we must assume that Loyds was not going to be suckered into buying a lemon. there will be a firesale, its just a matter of time.

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.......would you lend £30 billion to such a business.....?........

If this report is true and you are a UK taxpayer then it sounds like you already have.

If this turns out to be the case I hope someone insists on going through the loan book and prosecuting any individual who can be shown to have behaved fraudulently in the issueing of the loans. That would restore some confidence in the market.

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If this report is true and you are a UK taxpayer then it sounds like you already have.

If this turns out to be the case I hope someone insists on going through the loan book and prosecuting any individual who can be shown to have behaved fraudulently in the issueing of the loans. That would restore some confidence in the market.

I'd buy that for a Dollar maybe not 60 billion dollars but for $1 I might!

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Guest vicmac64
Does this mean our Govt will paper over the cracks like before and perpetuate the bubble for a while longer? Perhaps until after the next general election?

It will never get that far - from what i can see there are more lenders waiting their turn to suck some money off the taxpayers.

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