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Nr To Die Today


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HOLA441
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HOLA443

They are still advertising (and presumably writing) 125% loans. This is a company that is in utter denial of the realities of the market in which they are operating.

One for the bin. Quickly or slowly, makes no difference. Part of me would like to see this festering sore stick around for as long as possible to remind as amany people as possible quite how much the banking industry has bastardized itself in its search for profit at any cost.

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HOLA444

And if they do fail… which would be a massive event that part of me would rejoice for and part of me would feel a huge sorrow about….

If they do fail, then when the great unwashed see just how easy it is going to be to get these secured deposits back from the government who have agreed to back them…

Months? Years? Perhaps…

Then we shall see the next run on the next bank as something altogether more interesting….

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HOLA4410

Is this the week Northern Rock Dies? Share price already down another 20% this morning.

Sad story of a solid building society lending 'the societys money to the societys loans' and showing steady growth, to hunting the money and becoming a bank and forgetting what they're all about. Rash lending to anyone who'll say yes.

How will this end?

a ) Takeover of Northern Rock at more than £1.50 a share?

b ) Takeover at under £1.50?

c ) No takeover and try to smash their way out of trouble

d ) No takeover and fold.

Edited by Chriso
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Guest muttley

There is no reason that they should stop trading at 150p. The shares are down because there is a rumour that someone is willing to buy them at a discounted price.

They will be taken over.

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Guest muttley
Quick question for the wise of you out there.

If the Rock was to be taken over this week lets say at £1.50, how many of the 5000 or so Newcastle staff would lose their job? 500? 4000? Anyone?

Cheers!!

It would depend who took them over . A foreign based bank would need to keep most, if not all, of the current staff. A UK bank would be looking at redundancies. 4000 would be nearer than 500.

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There is no reason that they should stop trading at 150p. The shares are down because there is a rumour that someone is willing to buy them at a discounted price.

They will be taken over.

yes. takeover, asset-stripped and then renamed into something fancy (or maybe they'll manage to keep the name)

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There have been things going on over the weekend, economic summits Greenspan meeting Brown, Bloomberg warning the Tory Conference, rumours of emergency BoE meetings late on Friday. Sudden jumps in the price of gold, leaked stories about the BoE's bullion quality.

NR is probably part of all of this, but I think bigger things are now afoot.

After a couple of quiet weeks, this could be a big one. Hold on to your hats.

The phoney war is nearly over, by Christmas we will be deep in the trenches.

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There have been things going on over the weekend, economic summits Greenspan meeting Brown, Bloomberg warning the Tory Conference, rumours of emergency BoE meetings late on Friday. Sudden jumps in the price of gold, leaked stories about the BoE's bullion quality.

NR is probably part of all of this, but I think bigger things are now afoot.

After a couple of quiet weeks, this could be a big one. Hold on to your hats.

The phoney war is nearly over, by Christmas we will be deep in the trenches.

Add to that the PM currently going live from Cannary Wharf about the Credit Crunch. Spouting his normal rhetoric trying to reassure everyone the UK is a flexible and viable economy. He must be concerned his repeated rhetoric is not working and people are slipping out of their trance and now feels he needs to do them more regularly to prevent this from happening again.

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Add to that the PM currently going live from Cannary Wharf about the Credit Crunch. Spouting his normal rhetoric trying to reassure everyone the UK is a flexible and viable economy. He must be concerned his repeated rhetoric is not working and people are slipping out of their trance and now feels he needs to do them more regularly to prevent this from happening again.

The conference was a platform for Greenspan. GB came across as less then convincing.

Also see attachment of today’s biggest fallers on the FTSE, the IVA industry looks to be having a few problems. Is this a sign of lenders get tough?

Picture2.jpg

post-6129-1191226657_thumb.jpg

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Also see attachment of today’s biggest fallers on the FTSE, the IVA industry looks to be having a few problems. Is this a sign of lenders get tough?

I think these stocks were themselves a bubble, so its probably the knock on of lenders becoming tough on an over hyped market sector. Even I was tempted by DFD about a year ago, but I decided not to become a greater fool...

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yes. takeover, asset-stripped and then renamed into something fancy (or maybe they'll manage to keep the name)

Hopefully someone will persuade the new owners to pay back the Bank of England its GBP 8 billion !!! Nu Labour - Nu wasters of tax payers money (I think another Rover cars fiasco is in the making).

"Northern Rock debt to Bank now £8bn

By Chris Giles, Peter Thal Larsen and Gillian Tett

Published: September 28 2007 03:00 | Last updated: September 28 2007 03:00

Northern Rock borrowed another £5bn from the Bank of England, it emerged yesterday, bringing its indebtedness to the central bank close to £8bn since it was given access to emergency funds nearly two weeks ago.

The Financial Times has also learned that Northern Rock last week distributed almost £40m in dividends to holders of preference shares, issued to maintain capital ratios just two days before the bank cancelled its interim dividend to ordinary shareholders, saving about £60m.

People close to Northern Rock said that while the bank had the option of deferring the dividends on the preference shares, payable each September 21, it would have had to give three weeks' notice.

The extent of Northern Rock's financing crisis - it has now borrowed the equivalent of a third of its retail deposits at the end of June - is raising fresh concerns about its viability.

Northern Rock has been ap-proached by potential buyers for all or part of its business. But debt advisers and distressed investors have been circling its investment vehicles. Creditors holding the bank's tier two debt are forming a formal committee to protect their interests in any restructuring or insolvency and have appointed investment bank Houlihan Lokey and the Bingham McCutchen law firm to advise them.

The additional borrowing appears to be linked to mortgages the bank has underwritten but not been able to sell on. In normal circumstances, it would have expected to issue £8bn in mortgage-backed securities in the fourth quarter. Expectations are rising that some investment vehicles might be forced to dissolve.

The Treasury declined to comment on where it would stand in the list of unsecured creditors if the bank went under."

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Hopefully someone will persuade the new owners to pay back the Bank of England its GBP 8 billion !!! Nu Labour - Nu wasters of tax payers money (I think another Rover cars fiasco is in the making).

I don’t recall Rover Getting an £8 Billion supporting loan? This has the potential to go horribly wrong, some may argue it already has!

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I don’t recall Rover Getting an £8 Billion supporting loan? This has the potential to go horribly wrong, some may argue it already has!

Saw this posted on another forum on friday. It would suggest that as from thursday afternoon they are pulling mortgage sales from the branches. I suspect the staff will be extrremely underworked waiting for investors to step through the doors.

"My OH works in our local branch and all secured loans, unsecured loans and mortgage selling has been taken away from her branch (and most likely all others) and have been directed to head office only, with effect from late yesterday afternoon.

Staff have been told to not actively promote loans or mortgages and only encourage investors."

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Weekend snoozepaper talk is that there are 2 US hedge funds in takeover talks with the Treasury (who now effectively control the bank via conditions attached to the last resort loans).

JC Flowers (Chris Flowers) being one. They are said to have access to NR's books.

One option apparently is for the NR to continue with its branch network, and another option is for it to sell off its loan book at a (presumably large) discount and be closed down.

Treasury would most likely favour any option which secures as many jobs as possible in the north east. (opportunity for Darling to pat himself on the back on TV - "doing the right thing for the staff" blah blah blah).

I would bet that the reason the shares have fallen to 150p is that the rumoured offer price is at or less than that.

Treasury will not care overly much what price the loan book fetches so long as they get their cash back. If there are only 2 possible buyers in the market then shareholders won't have much to cry about if assets are sold off cheaply.

Edited by Red Kharma
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