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Northern Rock - 6,500 Jobs To Go

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http://www.citywire.co.uk/personal/-/news/....aspx?ID=298934

Staff numbers at Northern Rock are set to be slashed under European Union (EU) competition rules.

Chancellor Alistair Darling is in Brussels today to give Europe further clarification on the government’s plans for the bank, which was nationalised last month and left the UK tax payer with a £25 billion debt.

According to press reports the size of the bank's loan book will be halved to around £55 billion with 6,500 jobs lost in the process. This would force the government to meet EU competition rules when it comes to bailing out stricken firms.

In the NuLab tradition of burying bad news, the day that Bear Stearns is sold for a pack of Fruit Pastiles and Curly Wurley would be a good day to confirm what we all knew would happen.

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In the NuLab tradition of burying bad news, the day that Bear Stearns is sold for a pack of Fruit Pastiles and Curly Wurley would be a good day to confirm what we all knew would happen.

A Curly Wurley you say? Hmmm, I might have to up my offer and throw in the Revels I was hoping to use for my A&L purchase!

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According to press reports the size of the bank's loan book will be halved to around £55 billion with 6,500 jobs lost in the process. This would force the government to meet EU competition rules when it comes to bailing out stricken firms.

Incidentally, isn't 6,500, like, all the staff?!

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It is so thoughtful of Darling to let his unelected European masters know what's going on and check it's ok with them.

For a moment there I thought it was owned by the British taxpayer....tut.... :rolleyes:

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I think 6500 is the total staff.

So EU competition rules basically mean selling the mortgage book on to another company for what you can get, and then sack everyone?

We wouldn't be getting our money back then?

Edit to add.

It could be a mistake on the part of the reporter. That's been known to happen.

Edited by bobthe~

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Okay this post has directly affected my sentiment, making me feel worried, they cannot hold the charade together any longer? Although many on here will have predicted this, I actually felt my realisation kick in as I read the thread. This will have a massive effect on UK sentiment? The government cannot save the bank, they cannot save the jobs, they cannot save the day?

Edited by dances with sheeple

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Always thought they'd break it up "on the quiet". Give it two years and NR will be a diddy (as in small, you naughty Scots...) savings bank, with a pretty pink logo.

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So EU competition rules basically mean selling the mortgage book on to another company for what you can get, and then sack everyone?

We wouldn't be getting our money back then?

Edit to add.

It could be a mistake on the part of the reporter. That's been known to happen.

It could be a mistake on the part of the Chancellor. That's been known to happen.

p-o-p

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The bad news just keeps a coming today I do feel genuinely sorry for all who lose there jobs the vast majority will have had no knowledge of what there rich leaders were doing to the bank, what with their Football team along with the Crock not much to make people smile up North at the moment

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Okay this post has directly affected my sentiment, making me feel worried, they cannot hold the charade together any longer? Although many on here will have predicted this, I actually felt my realisation kick in as I read the thread. This will have a massive effect on UK sentiment? The government cannot save the bank, they cannot save the jobs, they cannot save the day?

They are far too busy filing expenses claims for new curtains and blu-ray dvd players.

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They are far too busy filing expenses claims for new curtains and blu-ray dvd players.

Good god man! Do you think a Blu-ray DVD player is a 'luxury'?! Surely the fact that the ONS are tracking important consumer electronics items such as this to ensure the correct rate of CPI and RPI should suggest how essential they are for modern living in the capital?

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Might not be a Happy easter for many in the North East

Bad news for those that lose jobs, my heart goes out to them.

Like i've said before, no moral hazzard. They should have been allowed to go bust (subject to protecting depositors).

If I worked for a company that had an unsustainable business model, they go bust and I lose my job.

What do I do? Get another one. Simple... The central banks and governments are merely encouraging more bad lending practices by their actions.

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Bad news for those that lose jobs, my heart goes out to them.

Like i've said before, no moral hazzard. They should have been allowed to go bust (subject to protecting depositors).

If I worked for a company that had an unsustainable business model, they go bust and I lose my job.

What do I do? Get another one. Simple... The central banks and governments are merely encouraging more bad lending practices by their actions.

Totally agree - the anger of the shareholders and the staff should be directed to the former management of company, they are the ones who deserve it.

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The bad news just keeps a coming today I do feel genuinely sorry for all who lose there jobs the vast majority will have had no knowledge of what there rich leaders were doing to the bank, what with their Football team along with the Crock not much to make people smile up North at the moment

What chance of the Crock news being followed by defeat at Birmingham tonight ?

Grim up north ? TFR !

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6,500 thats alot of redundacy money to pay out, wheres that money coming from?

Oh dont tell me

Also thats a lot of mortgages that are going to be bailed out, whos going to pay for that?

Oh dont tell me :(

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Like i've said before, no moral hazzard. They should have been allowed to go bust (subject to protecting depositors).

The "market forces" hardliners would argue that the depositers should not be protected. They would say that depositors made a deliberate choice to place their money with a specific institution, and if they were reckless enough to chase high interest rates over prudent lending policies then they should pay the price.

Of course it's all academic, because never in a month of Sundays will the UK or US government allow major banks to go bust. So, if the situation continues to deteriorate, they will be bailed out. Here's Paul Krugman's take on it,

http://www.nytimes.com/2008/03/17/opinion/...amp;oref=slogin

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Not all the jobs will go. Even if NR is closed to new business they'll be a considerable amount of admin to do on existing accounts for a long time to come.

Could they not use the back office of another bank to administer the remaining NR accounts? (I am guessing they will sell the mortgages and encourage the savers to leave by slashing rates) leaving ~25% of what was there before.

The way things are going they might be bailing a few additional UK banks out, so merging their back office operations would lead to 'economies of scale'!

Edited by redalert

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The "market forces" hardliners would argue that the depositers should not be protected. They would say that depositors made a deliberate choice to place their money with a specific institution, and if they were reckless enough to chase high interest rates over prudent lending policies then they should pay the price.

Of course it's all academic, because never in a month of Sundays will the UK or US government allow major banks to go bust. So, if the situation continues to deteriorate, they will be bailed out. Here's Paul Krugman's take on it,

http://www.nytimes.com/2008/03/17/opinion/...amp;oref=slogin

To a certain extent I agree. However, if depositors aren't protected there will be a complete breakdown in the banking system as a whole. Bringing down even repsonsible banks with fundamentally sound business models. If NR went under and depositors lost their money, I would be down to my high street bank to withdraw all my money quicker than could be imagined.

I don't know much about what happened in Japan in the 80/90's, but I do have a vague memory that most Japanese homes had a safe, and they keep all of their money at home, such was the lack of trust in the banking system.

Cheers for the article link

And we need it quickly: things are falling apart as you read this.

Thinks aren't looking good, and stand to get a whole lot worse.

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  • 292 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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