Monday, September 24, 2007

Is this really a surprise

Northern Rock managers partied in Spain as customers feared the worst

Is it not strange that everybody apart from the people running Northern Rock are being blamed for this shambles

Posted by mrmickey @ 01:52 PM (1078 views)
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7 thoughts on “Is this really a surprise

  • NR was at its best as a lowly Building Society.

    Securitisation has benefitted the west for the last 10 years, it’s interesting that faults in the US system probably pulled down NR. NR didn’t really understand the implications.

    Meanwhile…the managers believed their own publicity. They felt they had earned those extra round of drinks…..

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  • dohousescrashinthewoods says:

    It’s the roaring twenties all over again 😉

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  • …and the boss gets a million quid golden handshake. Nice.

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  • “Bloody Hurrah!”

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  • No-one in The City seems quite sure if NR’s mortgage portfolio is an asset or a liability, and the behaviour of the top brass is not terribly reassuring.

    My predictions:

    1) 80% chance – the name Northern Rock will have vanished from the high street within a year

    2) 70% chance – they will stop accepting new business within a month

    3) 60% chance – the most senior management will be gone by Christmas

    4) 99% chance – those handling the residue of their portfolio will push the level of fees and variable rates as high as they posibly can

    5) 50% chance – the portfolio will prove to be a liability, wiping out shareholders

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  • Couple of thoughts…

    Darling says he is not bailing out irresponsible behaviour at the same time as the bank is promising shareholders a bumper dividend. Someone is telling fibs.

    NR used to be a building society so I am guessing that a lot of its shareholders were awarded those shares – they are probably not typical shareholding individuals. Come the serious downturn, they may have to sell their shares to help pay the mortgage. How ironic.

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  • “The four-day trip, paid for by the bank, started on Friday, September 14, and was a reward for managers who had hit their mortgage sales targets earlier in the year.”

    Paid for the entertainment too 🙂

    Still I doubt they’ll make it to the Christmas party. But you never know!

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