Jump to content
House Price Crash Forum
Sign in to follow this  
marko

Northen Rock

Recommended Posts

Serious question for all those on here in the know. What is the current situation with Northern Rock? Back in May people where saying that a 5% fall in house prices would affect the ability of the Crock to pay the government (our) money back. 5%.

http://www.independent.co.uk/news/business...payments-8][/b]

There is a curious silence in the media - what is the current state of play?

Share this post


Link to post
Share on other sites

Mentioned something on Newsnight last night about rock's loan coming back onto the UK's balance sheet very soon. Thus pushing Uk government debt well over 40% of GDP. I don't no if such deal was in place when debt was placed off balance sheet.

Share this post


Link to post
Share on other sites

Ron Sandler was on BBC Parliament channel a few weeks ago, he was giving a briefing to a committee on the current play of Northern Rock and it's future, mainly it's ability to one day stand on it's own two feet again.

The falling housing market came into the equation and he was asked by the committee on northern Rocks ability to withstand the housing market falling.

Ron Sandler stated that they had proof tested Northern Rocks ability to withstand a housing market crash on the scale of the 1990’s and stated the bank survived the test.

Unfortunately the committee didn't expand on this and ask on it's ability to withstand a market crash worse than the 90's.

Share this post


Link to post
Share on other sites
Ron Sandler was on BBC Parliament channel a few weeks ago, he was giving a briefing to a committee on the current play of Northern Rock and it's future, mainly it's ability to one day stand on it's own two feet again.

The falling housing market came into the equation and he was asked by the committee on northern Rocks ability to withstand the housing market falling.

Ron Sandler stated that they had proof tested Northern Rocks ability to withstand a housing market crash on the scale of the 1990’s and stated the bank survived the test.

Unfortunately the committee didn't expand on this and ask on it's ability to withstand a market crash worse than the 90's.

Why would they ask more probing questions? The only ask questions they know they will like the answer to. The taxpayers been left will all the crap loans haven't we?

Share this post


Link to post
Share on other sites
Guest happy?
Why would they ask more probing questions? The only ask questions they know they will like the answer to. The taxpayers been left will all the crap loans haven't we?

To which Mr Sandler would reply: "Yes. And that's another £5k."

Kerching!

Share this post


Link to post
Share on other sites
To which Mr Sandler would reply: "Yes. And that's another £5k."

Kerching!

Exactly if he fails he'll get a whacking great big payoff at the taxpayers expense, probably even bigger than Applegarths.

Great work if you can get it.

If you where going to stress test your business model you'd take it to the extremes.

What sort of default rate can the Rock survive?

10%

15%

20%

25%

At want point does it really go under?

Share this post


Link to post
Share on other sites

Cgnao posted this on GEI on Friday. Still one step ahead.

----

Did you rush to deposit your money in a high rate Northern Rock bond relying on the Government guarantee?

Yes?

I've got bad news for you.

http://www.msnbc.msn.com/id/25719584/

Banks reportedly not taking IndyMac checks

Finally able to withdraw their money, customers can’t open new accounts

updated 10:41 a.m. ET July 17, 2008

LOS ANGELES - The frustration didn't end for some IndyMac customers when they finally were able to withdraw their funds from the failing Southern California bank seized last week by federal regulators.

Some people have run into more problems when they tried to deposit IndyMac cashier checks at other banks.

Sheryl MacPhee said she waited in line two hours Tuesday at an IndyMac branch in San Marino to liquidate a certificate of deposit. But when she took it to a Washington Mutual branch in South Pasadena to deposit, she said a manager told her their new policy was not to accept IndyMac checks.

Edited by pppeter

Share this post


Link to post
Share on other sites

I'd speculate that Sandler is in the process of slowly, surely and brutally trying to whittle down the liabilities side of NR's balance sheet so that the rump left over at the end of the process is as small as possible, using the following approach:

Prime or nearly prime borrowers - let them reset to a punishing SVR so that they'll redeem their mortgages and take them to another lender ASAP;

Seriously sub-prime borrowers - ditto, so that they'll either pay over the odds for a while, thereby improving NR's cashflow more than the original business planning for their loan allowed for, or default and to go repo. If the latter, NR's intention is presumably for this to happen ASAP, to minimise the negative equity hit when they come to repo and reflog.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 401 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.