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yellerkat

"treasury Injects £3bn Into Rock"

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Just heard it on R4. One the one hand New Labour are saying the bank is paying back taxpayers faster than expected and on the other we have just given them another 3bn to tied them over and to pay the fat cat that is running the business.

Lies, deceit and spin. New Labour just dig themselves deeper and deeper.

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This bank should have been left to go bust.

The idiot running the bank has no clue what's he's as all the decent mortgages have been got rid of leaving the taxpayer to pick up the tab for all the 125% crap, because of competition rules we are giving these people unrealistic repayments meaning the taxpayers will have to repossess and make a loss as clearly the property value won't cover the outstanding loan.

Fantastic business plan. I wish I could earn a seven figure salary and come up with crap like this.

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http://news.bbc.co.uk/1/hi/business/7521672.stm

New Northern Rock boss appointed

I am excited by the prospect of leading the company back to a position of strength
Northern Rock has appointed the vice chairman of Barclays, Gary "Gazzer" Hoffman, as its new chief executive.
Mr Hoffman replaces current chief executive Andy Kuipers, who will leave on August 31 after 20 years at the Newcastle-based lender.
Mr Kuipers is the final member of Northern Rock's original board to leave the bank after last year's crisis.
Northern Rock was nationalised in February following the first run on a British bank in more than a century.
Mr Hoffman's basic salary is £700,000 and he will also receive three separate payments of £400,000
in compensation for the loss of his participation in Barclays' long-term incentive plans.
"I am excited by the prospect of leading the company back to a position of strength," Mr Hoffman said.

Oink oink.

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This is so crazy,,, Britian is behaving like a communist country...

3Billion,,,,, Oh I see, lets inflate our way out of our problem...

Its so sad, Labour have lost the plot completely...........

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Just heard it on R4. One the one hand New Labour are saying the bank is paying back taxpayers faster than expected and on the other we have just given them another 3bn to tied them over and to pay the fat cat that is running the business.

Lies, deceit and spin. New Labour just dig themselves deeper and deeper.

According to the Peston article,

"The money will come from ceasing for a period the repayment of the giant taxpayer loan made to the Rock."

i.e. they are going to NOT pay back the taxpayer.

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http://news.bbc.co.uk/1/hi/business/7521672.stm

New Northern Rock boss appointed

I am excited by the prospect of leading the company back to a position of strength
Northern Rock has appointed the vice chairman of Barclays, Gary "Gazzer" Hoffman, as its new chief executive.
Mr Hoffman replaces current chief executive Andy Kuipers, who will leave on August 31 after 20 years at the Newcastle-based lender.
Mr Kuipers is the final member of Northern Rock's original board to leave the bank after last year's crisis.
Northern Rock was nationalised in February following the first run on a British bank in more than a century.
Mr Hoffman's basic salary is £700,000 and he will also receive three separate payments of £400,000
in compensation for the loss of his participation in Barclays' long-term incentive plans.
"I am excited by the prospect of leading the company back to a position of strength," Mr Hoffman said.

I thought Gazza was having mental problems after his football career went awol.

Oink oink.

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Its different for normal people

"Hi Bank, let me borrow 270,000." OK says BAnk

6 months later,

"Hi Bank, Ive paid back 90,000, but im losing 500 every month and cant pay anymore"!

Bank says," oh dont worry Mr borrowing normal person, heres another 30,000"..... NOT!

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Applegarth got a 760K payoff after overseeing the bank's demise.

That's taxpayers' money too...

I could screw up any business you like for, say 500K plus company Merc. Bargain! I am currently available.

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Its a farse. Might as well throw a few billion at B & B and A & L while they are at it. RBS are a bit short as well

I am finding it seriously depressing, these clowns at the banks helped deny me the opourtunity to buy my own home by allowing silly salary multiples and lending amounts to any old moron (which anyone with half an ounce of common sense could see was going to end in tears) and now by adding insult to injury they are using my tax money to bail them all out.

Seriously, this government have failed a generation both the over stretched muppets and those left behind all for some vanity project of Blair/Brown et al to stay in power.

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I am finding it seriously depressing, these clowns at the banks helped deny me the opourtunity to buy my own home by allowing silly salary multiples and lending amounts to any old moron (which anyone with half an ounce of common sense could see was going to end in tears) and now by adding insult to injury they are using my tax money to bail them all out.

Seriously, this government have failed a generation both the over stretched muppets and those left behind all for some vanity project of Blair/Brown et al to stay in power.

What else did you expect would happen?

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Applegarth got a 760K payoff after overseeing the bank's demise.

That's taxpayers' money too...

I could screw up any business you like for, say 500K plus company Merc. Bargain! I am currently available.

you have to pay directors off and make them sign bits of paper, otherwise they will take you to the cleaners in the papers and kill the economy in its tracks. Paying someone off, ensures we live to see another day...

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According to the Peston article,

"The money will come from ceasing for a period the repayment of the giant taxpayer loan made to the Rock."

i.e. they are going to NOT pay back the taxpayer.

That is interesting. So the government don't hand over any new cash.

I found myself wondering whether this is just the first announcement here, will it be followed by:

"Now that the government has invested £3bn to strengthen the balance sheet the special guarantee of deposits with Northern Rock is no longer required"?

If it does that (and it badly needs to get out of that open ended committment), then there will be some big outflows from NR.

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That is interesting. So the government don't hand over any new cash.

I found myself wondering whether this is just the first announcement here, will it be followed by:

"Now that the government has invested £3bn to strengthen the balance sheet the special guarantee of deposits with Northern Rock is no longer required"?

If it does that (and it badly needs to get out of that open ended committment), then there will be some big outflows from NR.

Anythings possible.

The 3bn is, supposedly, to bring it back in line with other banks funding requirements so it doesn't have an unfair advantage against other banks. It also makes Northern Rock more saleable than before (although that's still not very saleable), it could also pave the way for an increase in new mortgage loans to help "kick start" the market. Anythings possible at the moment.

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http://business.timesonline.co.uk/tol/busi...icle4462487.ece

The Treasury is preparing to convert up to £3 billion of government loans to the Rock and £400 million of Rock preference shares into ordinary Rock shares.

A Rock spokesman said the debt-for-equity swap would have no cash benefit because the bank would pay a higher interest rate for the remaining loans.

"These actions to be taken to improve the regulatory capital position of the company will not change the Government's net cash exposure to Northern Rock," the bank said.

However, sources close to the deal conceded that the balance sheet rejigging could result in taxpayers ultimately losing more if the state-sponsored rescue of Rock was unsuccessful.

Rock's loan losses ballooned from £56.8 million in the first half of 2007 to £191.6 million. Rock also incurred one-off expenses of £165.6 million, including a provision of £37 million for redundancies and £35.6 million in fees to City advisers. Staff numbers are to be cut by about 2,000.

Ron Sandler, chairman of the bank, said the losses were likely to continue as the credit environment remained difficult. But he added: "I am confident that the foundations have been well laid for recovery and return in due course to private ownership."

Chancellor Alistair Darling said that after carefully considering the value-for-money case, he was satisfied the refinancing was the best way of meeting the Government's objectives. Many banks in the UK had had to boost their equity capital positions in recent months and Rock was in the same position, he said in a letter to John McFall, chairman of the Treasury Select Committee.

The move, which requires state aid approval from Brussels, would not count as an increase in government spending but would add to public sector net debt. "The value of the additional equity will be reflected in the sale price for Northern Rock on return to the private sector, which will reduce public sector net debt at the point of sale," Mr Darling argued.

Well I'm convinced taxpayers money is safe.... We can trust Darling.

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I know someone in Basra who just had to buy his own body armour because the Govt supplied stuff was crap. Apparently the military couldn't afford it.

But if its a bank, no problem have another 3 billion to piss away.

NuLabour are scum. They have betrayed every principle Labour once stood for, killed thousands in pointless unjustified wars, and wasted billions on banks that should have gone bust.

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I know someone in Basra who just had to buy his own body armour because the Govt supplied stuff was crap. Apparently the military couldn't afford it.

But if its a bank, no problem have another 3 billion to piss away.

NuLabour are scum. They have betrayed every principle Labour once stood for, killed thousands in pointless unjustified wars, and wasted billions on banks that should have gone bust.

Thats because banks can't be allowed to fail at any cost, far too important. Soldiers are much more easily replaceable especially if you have a recession and people can't get any other work.

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Guest Shedfish
I know someone in Basra who just had to buy his own body armour because the Govt supplied stuff was crap. Apparently the military couldn't afford it.

But if its a bank, no problem have another 3 billion to piss away.

NuLabour are scum. They have betrayed every principle Labour once stood for, killed thousands in pointless unjustified wars, and wasted billions on banks that should have gone bust.

i agree totally.

funny how quiet B&B are this week. apparently they were due to report yesterday according to the FT

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Guest DissipatedYouthIsValuable

I could have sworn Radio 4 mentioned that Northern Rock was paying back its loans on news this morning. Right after it said it had made a loss.

And now this afternoon we hear that Northern Rock is borrowing again.

Is it borrowing some of the money it gave back this morning?

Terribly complicated all this finance business.

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I could have sworn Radio 4 mentioned that Northern Rock was paying back its loans on news this morning. Right after it said it had made a loss.

And now this afternoon we hear that Northern Rock is borrowing again.

Is it borrowing some of the money it gave back this morning?

Terribly complicated all this finance business.

.

post-10489-1217955217_thumb.jpg

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  • 395 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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