Wednesday, Oct 28, 2009

Good bank, Bad bank

Sky: EU Green Light To Northern Rock Split

"The European Commission has approved a restructuring package that will see Northern Rock split." "The endorsement, required under EU state aid rules, paves the way for a clawback of taxpayer cash which has been ploughed into the nationalised bank". "This will allow what the EC called the "orderly liquidation" of this section of the business, which will house unsecured debt and mortgage assets".

Posted by alan @ 12:00 PM (971 views)
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1. mountain goat said...

Lloyds, Royal Bank of Scotland and Northern Rock will be broken up and parts of their businesses sold off to create three new banks, it emerged last night. - Independent

Wednesday, October 28, 2009 01:08PM Report Comment

2. crunchy said...

That's jolly decent of them.

You may even save me the bother to vote.

Wednesday, October 28, 2009 01:40PM Report Comment

3. inbreda said...

1. - won't this muddy the waters somewhat in terms of which bank owns what, which part of it had the bailout, and what parts of the new banks are going to hold up the promise to repay the bailout money? After all, we were told that our (taxpayers) RBS shares may even at some point return a profit. How is that going to happen if we are just left with the crap?

Isn't it a bit contradictory to be trying to promote competition by such massive manipulation in the market. Some companys can bid, others can't. The new companies will presumably have books that have been sufficiently cleaned to allow them to offer low rates. Isn't that just going to put even further unfair pressure on the prudent banks that didn't get bailed out?

Wednesday, October 28, 2009 05:27PM Report Comment

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