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ripandcap

Another Thrashing For Us Tax Payers

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The real story is hidden in the article: the government are making a £3bn equity investment in Northern Rock. This is £3bn straight down the drain as it won't be repaid and there seems little chance that it will ever be a viable business which can be sold on. A banking analyst on the Today programme on R4 this morning reckoned that the govt would have to PAY other banks to buy bits of Northern Rock to eventually get rid of it.

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'Redemption plan'

Northern Rock's executive chairman Ron Sandler said he was pleased with the progress that had been made in repaying its debt.

"Repaying the government loan is proceeding well ahead of target," he said. "This is the result of the success we are having with our redemption plan."

It was stressed on the tv news earlier that Northern Rock was repaying it's existing loan earlier than expected.. how does that make any sense if they need to borrow another £3 billion? :blink:

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The real story is hidden in the article: the government are making a £3bn equity investment in Northern Rock. This is £3bn straight down the drain as it won't be repaid and there seems little chance that it will ever be a viable business which can be sold on. A banking analyst on the Today programme on R4 this morning reckoned that the govt would have to PAY other banks to buy bits of Northern Rock to eventually get rid of it.

Ooh, a bit like Merrill Lynch... how thoroughly modern.

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It was stressed on the tv news earlier that Northern Rock was repaying it's existing loan earlier than expected.. how does that make any sense if they need to borrow another £3 billion? :blink:

If only it was borrowed - it's a purchase of new shares in NR by the govt. That means this £3bn is last in the queue in the event of bankruptcy.

This looks like a typical Gordon Brown window dressing effort - they need the £3bn equity investment so that they can pay back the govt. debt and crow that they are doing better than expected. FUBAR!!!!

If there is any other explanation for this I'd like to hear it - anyone?

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  • 399 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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