Friday, January 11, 2008

Piecemeal break-up?

Northern Rock sells assets to repay Bank

"Troubled mortgage bank Northern Rock has sold a 2.2 billion pound portfolio of mortgages to U.S. investment bank JP Morgan and said it would use the cash to repay the Bank of England".

Posted by alan @ 08:35 AM (790 views)
Please complete the required fields.



8 thoughts on “Piecemeal break-up?

  • Oh look…. flying pigs….

    Reply
    Please complete the required fields.



  • Well, that’s a start, oly another £23.8 billion to go. Keep up the good work…

    Reply
    Please complete the required fields.



  • What a coincidence. Yesterday Blair announces his cushy job with JP Morgan and today they buy 2% or Northern Rocks mortgage portfolio…

    Reply
    Please complete the required fields.



  • it_is_going_with_a_bang says:

    How many days of interest does that cover ?!

    Reply
    Please complete the required fields.



  • Can JPMC afford it? They’ve got to pay Mr Blair’s bills now.

    Reply
    Please complete the required fields.



  • That is the best of the mortgage book, following Bliar… At discount?

    Reply
    Please complete the required fields.



  • Is that NR entire mortgage portfolio, can’t see investment banks rushing to by mortgage backed securities at the moment unless its a giveaway.

    Reply
    Please complete the required fields.



  • Not only did they sell £2.2bn in mortgages, but it fetched a premium of 2.25%! Why didn’t it sell for a hefty discount? Are they excluding the costs of bond insurance? Or does JPMorgan’s purchase have anything to do with a certain former prime minister accepting a job offer from them?

    This could be a trust-building trick. Blair uses his influence to make JPM buy a small proportion of the debt. Other banks see this, and think “Well if JPM are doing it then it must be safe for us to pile in too”. Before too long the entire £24bn is sold off. Neat trick.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>