hopper

Alister Darling has announced today that Northern Rock will enter into a period of public ownership (Nationalisation).

So what does that mean to you?

If you have a mortgage with NR, does that now mean that the government 'own' part of your house?

What will happen to shareholders, it is expected that the shares will be suspended when trading opens on the Stock Exchange tomorrow, does this mean that your shares are worthless or will the government buy your shares at the last market price?

What do Tenerife Forum member think?

__________________

A gourmet who counts calories is like a tart who looks at her watch


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

View the Google
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
at Tenerife Times

Nigel

I have a Northern Rock mortgage so my house now belongs to the taxpayers. At least as a taxpayer myself it means I still own part of it.

hopper

Now that's interesting, it means that you actually own more of your house now than you did yesterday.

__________________

A gourmet who counts calories is like a tart who looks at her watch


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

View the Google
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
at Tenerife Times

Albatros

I think Alistair Darling was put between a rock and a hard place (excuse the pun). The government would be damned if they did and damned if they didn't.

It is amazing how quickly all focus of the problem moved away from the 'city' and on to the government (you and me).

I have listened to endless programs on the subject and the one thing that is clear is that noone can come up with an amicable solution. Having said that, there is no shortage of folk jumping on the badwagon criticising every suggestion.

__________________
I can win an argument on any topic, against any opponent. People know this, and steer clear of me at parties. Often, as a sign of their great respect, they don't even invite me. [Dave Barry (1947 - )]

kathml

Its typical of this government to get involved in a mess & then manage to make it an even bigger mess

Whats going to happen when the repossessions begin & the government make people homeless

P"""up & brewery come to mind

hopper

You are quite right and I have to say that I admire their decision to NOT sell out to Richard Branson who (IMO) was trying to be very opportunist and get a nationwide high street presence for his Virgin Money Group on the cheap.

It must have been very tempting to sell out to him.

__________________

A gourmet who counts calories is like a tart who looks at her watch


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

View the Google
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
at Tenerife Times

Albatros

Spot on! Much as I admire Richard Branson, a sell out on the terms offered would have cost the tax payer dearly.

__________________
I can win an argument on any topic, against any opponent. People know this, and steer clear of me at parties. Often, as a sign of their great respect, they don't even invite me. [Dave Barry (1947 - )]

Albatros

As I said in my previous post, it was not the government who sold mortgages to folk who could not afford them. It was Northern Rock! If left to proceed without government intervention there would be a lot more ordinary folk in deep doodoo!

I am sure that there will be no more repossesions within Nothern Rock than any of the other banks who have sold such mortgages. Time will tell.

I am no supporter of the current government but I deplore the way that such serious and complex situations are treated by sensationalist media.

__________________
I can win an argument on any topic, against any opponent. People know this, and steer clear of me at parties. Often, as a sign of their great respect, they don't even invite me. [Dave Barry (1947 - )]

hopper

However, the making of the Bank of England report any emergency measures was. Previously, the BofE could have stepped into help Northern Rock out with temporary loans that need not have been disclosed.

This facility would have stopped any run on a bank because unless you were in the know you would not hear about it.

The governments policy forced the BofE to disclose Northern Rocks problems thus compounding them.

IIRC, this has now been reversed, the government have done a u-turn on the back of the NR fiasco and the BofE have the facility to offer 'secret loans' yet again to the banking sector.

__________________

A gourmet who counts calories is like a tart who looks at her watch


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

View the Google
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
at Tenerife Times

jogger321

Caught between a Rock & A Hard Place?..Thought the take in this article below puts an interesting slant on it



"It is worth taking a moment to reflect on how we got here. When Northern Rock's troubles became critical there was no systemic risk to the financial system. There was a risk to 6,000 regional jobs which was a political risk in a period of election fever in Labour's North East heartlands.

If Northern Rock had been put into administration the shareholders and probably the employees would have lost out. No mortgage holders would have been worse off, depositors would, since we are told by the government the bank's assets are good, have got their money back.

The only cost to the taxpayer would have been the unemployment benefit payments to redundant Northern Rock staff - most may have kept their jobs with new owners of the business (Lloyds TSB was said to be interested). Instead of the normal commercial and legal run off process taking its course, the government intervened. The result is the nationalisation of the century.

Now we have a situation where £100 billion of taxpayer's money is being bet on the UK property market as it teeters on the edge. Gordon Brown repeats the mantra that the public's money is secured against the bank's assets. The bank's assets are what exactly? The equity in mortgagees homes belongs not to the bank, it belongs to the homeowners. The only properties Northern Rock has an interest in are it's own branches and offices. The only homes it owns are those where it forecloses, usually and increasingly at a loss due to negative equity (remember all those 125% offers). The other major asset the bank owns is it's profit stream from the spread it makes on lending versus borrowing. That has disappeared because of the credit crunch. Right now there is no profit stream to speak of, that is why the bank is bust."