Monday, February 18, 2008

Northern Rock Small Shareholder Petition

Carefully consider the fate of the many small shareholders in Northern Rock (and any future companies in peril) rather than writing them off in any plans for the stricken banks future. Small shareholders should be given some protection too!

"In dealing with this crisis, brought on by poor management by both the company directors themselves AND The Government and its agencies, it now only seems keen to: 1. Protect taxpayers; 2. To promote financial stability; and 3. To protect consumers. This clearly leaves out entirely from aims any kind of protection or even consideration for small shareholders. Why? Most small shareholders are not rich people & do not deserve to be written off ENTIRELY, while at the same time all small savers are saved from ANY loss AND the Government also make a profit from its support (or at least hopes to)...."

Posted by happyrenterz @ 12:45 PM (2064 views)
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33 thoughts on “Northern Rock Small Shareholder Petition

  • [email protected]@cks

    Share holders are literally the last people who should be compensated in the event of company failing. That’s what I learnt at uni anyway, have the rules changed in the meantime?

    You pay your money, you choose to take on the risk. End of.

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  • The biggest shareholder (bless him) in NR is considering taking the government to court.

    Personally I think we on this site should make it clear that we will take the government to court if they do compensate shareholders. It is not their remit, and if NR was going to go bankrupt if left to its own devices, then teh shares are worth nothing, and that is precisely the level of compensation that should be offered. Any attempt to pander to these greedy sharks, should prompt a class action from non-NR-shareholders who are angry at subsidising incompetence.

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  • I suppose that is the question. “if NR was going to go bankrupt if left to its own devices, then teh shares are worth nothing,”

    However, if breakup of NR would have given shareholders something then I can see how they are angry at how things have progressed. However, since shareholders now would get paid from taxpayers money I don’t think that should happen. Don’t agree with “greedy sharks” description though inbreda. Buying shares is risky and so one should be prepared to lose money sometimes, but it is better for the economy than sticking it in a bank account. Shareholders are valuable to the economy and should not be treated like dirt.

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  • The profits and therefore shareholders of private corporations are subsidised on a daily basis to the tune of billions of pounds in government subsidies, handouts and grants. It happens here and in the US, supposedly the paragon of free-market economics.

    People need to realise that in principle, what the government has done with NR is nothing new – it’s just the scenario is a bit different.
    Anyone who tells you we have a free-market economy in this country or anywhere else on this globe is a bare-faced liar. We have a system that enables the rich to consolidate their position and get ever richer. The sooner we wake up to this the better.

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  • As usual the lawyers and accountants will make a killing. The mistakes were made some time ago, and now there is no sensible way out. If people knew that their money was only safe up to £33,000, perhaps the Govt could have let NR go under as it should? Then the small shareholders who hung on to the bitter end would get diddly squat.

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  • @shipbuilder – agreed, there are loads of subsidies for big industry in the US, the free market is largely a pretence. It is the individual who is subject to market forces such as low wages, no healthcare etc.

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  • I heard the Govt were promising to give a certain amount of money from Northern Rock to its charity every year. I don’t suppose the share holders are feeling very charitable at the moment.

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  • Look, the shareholders of NRK need to understand that the company is bust. The shares are worthless.

    The alternative to nationalisation was administration (since no private buyer could be found) in which case they would have got nothing either. The idea that the greedy spivs from the hedge funds should be paid out by the taxpayers is shocking beyond words.

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  • God almighty. Someone start a petition for the shareholders to get exactly what their shares are worth: **** all.

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  • Did the government give me any money when my Marconi shares disappeared down the dotcom plughole? I feel sorry for the smaller Share holders but that is the nature of investing. Some you win, some the government nationalise.

    Old Etonian is 25/1 in the 4.10 at Lingfield, if I put £1000 on the nose and it finishes 4th, can I sue the government for my stake money back?

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  • A big old mess…..NR should have been left to go to the wall.

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  • I remember at one stage 40% of NR shares were out on loan for shorts. Since trading is suspended that could get messy!!!

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  • Wouldn’t worry too much. Since when has any downing street petition actually achieved anything?

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  • This clearly leaves out entirely from aims any kind of protection or even consideration for small shareholders. Why? Most small shareholders are not rich people & do not deserve to be written off ENTIRELY, while at the same time all small savers are saved from ANY loss AND the Government also make a profit from its support (or at least hopes to)….”

    buying shares is gambling – to save you means saving those parasitical hedgefunds, RAB and SRM, so I will not be signing this petition

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  • I can’t see what all the fuss is about regarding the shareholders – individual shares are generally acknowleged as being high risk ie you could lose all of the money invested – this is precisely the case with Northern Rock. If the BOE had not stepped in as lender of last resort NR would (IMO) have ended up in administration – without the treasury g’tees etc.. the shares (again IMO) were worthless.

    Why can’t the shareholders (large or small) come to terms with this simple concept?

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  • Why would anyone here sign this petition? I think most here are smart enough not to put money behind an ailing mortgage bank that’s staring down the wrong end of a housing-bust induced recession.

    We just need to convince our government of the same.

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  • happyrentz – not wanting to sound like a know-all, but closing out short positions is allowed by the LSE for suspended shares.

    Besides, it would simply involve the borrower sending a cheque to the lender for zero pounds and zero pence, since that’s what they’re worth right now.

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  • ………………in adition to previous comment – no.14, ‘savers’ are saving and getting a small interest payment from their ‘safe’ deposits” these bear no relation to the gambling and profiteering of shareholders, large and small. Bet these ‘small’ shareholders weren’t bleating when collecting their dividend during the good times. Savers look after their money and are low risk, shareholders gamble their money and are high risk. As has been written before on this site……….End of!!!

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  • japanese uncle says:

    This is a lesson for all shareholders about the volatility of UK financial stocks. Period. Stay away from them, as even supposedly the institutions are fairly risky as an inevitable result of the collapsing housing bubble.

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  • japanese uncle says:

    Sorry correction

    This is a lesson for all shareholders about the volatility of UK financial stocks. Period. Stay away from them, as even supposedly the safest institutions are fairly risky as an inevitable result of the collapsing housing bubble.

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  • What a bunch of saps!

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  • Perhaps it’s time for our petition to stop them getting compensation, because of the huge backlog of cases that would be brought to court to claim compensation if Capt’n Darling of the good ship Failboat decides to compensate those who cannot understand the concept of risk.

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  • Should take the route of a D&O legal claim.

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  • “Don’t agree with “greedy sharks” description though inbreda”

    I was referring more specifically to those that bought shares after the shares had plummeted, thinking there was going to be some bidding war, or tehy would be able to asset strip the company.

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  • In the good old days the ‘liitle man’ was quite happy to have his little pot of savings in a high interest Building Society (proper one) account.

    Play with the big boys and you may get your fingers burnt.

    It’s a tough world, accept the risk.

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  • I for one am utterly sick of listening to the whinging of these people. This is the world of cut-throat capitalism everyone willingly signed up to – singing it’s praises to the heavens when times are good. Some people have real concerns like feeding a family and keeping a roof over their head – the people nobody thinks twice about stamping on for the money for that villa in Spain.
    You lost out – tough. Money isn’t everything.

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  • Nobody should compensate equity investors that put all their eggs into one basket, period. Investing in one or a handful of stocks, especially if you don’t have any insider clue of what the business is all about is an example of reckless risk taking.

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  • it_is_going_with_a_bang says:

    The only person I know that has NR shares bought them after the scandal first broke. They thought they would get a bargain and make a killing because of some economics ‘guru’ on the BBC spouting off.
    So they bought 2k’s worth.
    As for the big Equity company that bought shares for exactly the same reason at that time – Stuff You.
    Thought you would make a killing and didn’t. Big deal. Get over it. You were greedy and cocky but you were wrong.
    The only person who deserves their money back – with interest – is the Taxpayer – who through no fault of their own has been forced into lending money to piece of c**p like NR.

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  • What a bunch of jokers these NR shareholders are… It’s just a shame these petitions don’t include both a ‘For’ and ‘Against’ signature section, LOL.

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  • Did anyone just watch this? because I just crapped myself!

    Dispatches: How the Banks Bet your Money
    Channel: Channel 4
    Air date: Mon, Feb 18 2008 – 20:00
    Description: Flagship current affairs programme covering groundbreaking reports that often set the news agenda. The global credit crunch has put Britain’s banks in a crisis that may even trigger a recession. John Moulton explains how bankers gamble for fast profits and big bonuses and why the taxpayer will be left to pick up the tab

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  • I put a big bet on italy to grand slam the six nations. I’m thinking of staring a petition to get my investment at the bookies underwritten as well

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  • reading the notices here makes me realize why i should not have invested my money.
    1. to enable the economy of the country to continue.
    2. to enable savers to recieve interest on savings.
    3. to enable the government and tax payers in the long run to benefit from the takeover of a “going concern” company.
    4. if the company had not been taken over then it would have been sold to the highest bidder namely virgin.
    5. long run result of 4 would have been profits to shareholders not tax payers!

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