Sunday, February 17, 2008

NR update – legal action likely

Northern Rock: What happens next?

The Government's formal announcement to nationalise Northern Rock may have been long coming but it will trigger a swift response across the City. The first step needed will be for shares in the Bank to be suspended before trading opens on Monday morning. Shareholders may therefore seek to use the Bank's closing share price on Friday, of 90p, as the basis for calculating their compensation.

Posted by jack c @ 07:54 PM (915 views)
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5 thoughts on “NR update – legal action likely

  • They can try. But if its going to be valued based on the absence of the government’s support, as indicated, then actually the shares are utterly worthless.

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  • Here are my ideas:

    Government now has huge vested interest in the performance of the property market so:

    1) Pressure put on MPC to drop onterest rates like a stone over coming months and hold them there far too long.
    2) Re-inflate property bubble, based on even cheaper debt.
    3) Northern Crock Mortgage book looks extremely good.
    4) Northern Crock sold to private equity firm for massive profit to the government and subsequently Tax payer gets their money back. Seen to be a big success.

    Brown and Co. become opposition after next general election.

    5) HPC put on hold for another few years, probably after the Olympics
    6) HPC finally happens, Torylib government stuffed with huge GDP deficit and crashing house prices.

    Crash and Darling end up having a real go at the new Torylib government from the safety of the opposition bench.

    How does this sound?????

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  • Holy hell Bystander you are right, the government can now slash interest rates boost the housing market saying it is getting a better deal for taxpayers!!!!!!!!!!

    OH NO!!!!!!!!!!!!!!!!!!!

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  • Darling has stated publicly that “Gordon Brown agrees that nationalisation is the best option”.

    Translation, “Don’t pin this just on me. If I’m going down I’m gonna try and take Gordon with me”.

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  • @bystander

    Recycling can be a good thing when applied to tins, paper and cardboard but not so great for blog comments as a rule.
    I posted my answer to your question at paragraph 45 at

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