Monday, February 18, 2008
Banks can nationalise mortgages
This snippet makes the point that the lack of competition with the withdrawal of NR from the public sector is beneficial to the other banks. Although, competition backed by the government isn't beneficial. Perhaps the shares have risen because NR will continue to trade as usual, whereas the other banks are certainly not trading as usual, and are making their mortgage deals less and less attractive. The unwanted mortgages finally have a home away from the private sector banks in NR. The proof of the pudding would be an increase in the NR book as they take more risky mortgages on.