Friday, March 20, 2009

Report into Northern Crock fiasco published

A criminal waste of public money

The nationalisation of Northern Rock has faded from the public eye. But a jaw-dropping report into its collapse by the National Audit Office reveals a disgraceful catalogue of waste, incompetence and the wholesale mismanagement of public money. We now discover that even after the Government had taken control, the failed lender handed over £1.8billion to home buyers borrowing up to 125 per cent of the value of their property. What was effectively taxpayers' cash was being given to buyers who were going straight into negative equity. This was a criminal use of public money and didn't do the borrowers any favours, as many have had homes repossessed.

Posted by little professor @ 12:05 AM (844 views)
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4 thoughts on “Report into Northern Crock fiasco published

  • ‘Criminal’ is the right word. Shareholders misled, and customers badly advised. So where are the culprits? Where is the culpability in financial services?

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  • Surely any lender currently lending more than 60% to someone buying a property still close to 2007 prices are also being irrepsonsible are they not, along with any reporter still reporting that there are “green shoots” or that the market is going to recover! The FSA has spoken of imposing 3x’s income after prices have fallen to ensure prices do not rise, everyone now knows prices have to fall in line with incomes is it not time to just GET REAL and report facts. Today Grant Shapps, the shadow housing minister, said with regards the FSA saying 2 million people will be in negative equity this year : “I hope these forecasts turn out not to be correct. I am shocked by the shear number of families now facing the prospect of negative equity”

    WHY ? WHY WAS HE SHOCKED? Prices have, through lack of regulation, inflated 190% and broke the banks and the UK, to be honest I find it shocking that the shadow housing minister was SHOCKED! But clearly nobody should be shocked or would be shocked if we stopped reading spin in the papers

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  • Not really ‘criminal’ – more like utter incompetance, borne of a complete lack of direction from the top.

    This government has become a rudderless ship, with an excess of crew who are all focused on covering their backs, and taking care of No.1.

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  • OK let’s try goldless pirates then.

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