Re: Northern Rock
 

Surprise, surprise.............. :rolleyes:

Re: Northern Rock
 

So it's going to be flush with money then from now on? Why the heck should the tax paying public of the UK have to bail out a bank that was left in the mire by it's customers drawing out hundreds of millions a day leaving the bank in a perilous state, the customers earnt the interest the bailed out, are they going to be paying that interest back to the Government when they take over the running of the bank?

Re: Northern Rock
 

Bailing out everyone who took risks and the message now to other banks will be dont worry if you mess up we will bail you out. Meanwhile cuts are been made elsewhere to fund this bailout.

Re: Northern Rock
 

Darling lends NR 50.000.000.000 and demands back 200.000.000 in interest that's 0.4% interest, assuming NR pays it back in year (fat chance).

Can I borrow few million on that rate?

Re: Northern Rock
 

Hasn't anyone spotted those fine strings hanging down behind Darling every time he speaks? It may be just co-incidence but rumour has is that, since becoming PM, Gordon Brown has become an expert puppeteer.........

Re: Northern Rock
 

is gordon brown the pm and the chancellor ,cos his role is confusing the hell out of me, this nationalisation has pear shaped written allover it

Re: Northern Rock
 

Senior members of the Northern Rock bank are over-paid a good salary to see that the bank runs smoothly. This sadly happens too often in many failing institutions and these "fat cats" always walk away with a golden handshake that is far better than their customers get, thereby rewarding failure.

Maybe in future we will have a situation where customers will take out savings protection to cover them in the event that their bank displays poor financial management & is unable to repay their money. In this way the government would not have to bail out failing banks and could allow the bank to fold without customers losing money.

Perhaps too we need some mechanism to deal with the "fat cats" so that they do not benefit financially. A very large fine plus a ban on working in any financial institution( or business) and in the event of proven malpractice perhaps a stiff jail sentence would deter others from following the same route. Or maybe a lawyer on behalf of the customers could sue "fat cats" personally for negligence and recoup money in that way too.

Re: Northern Rock
 

If there is proven malpractice then the FSA can take action, such as banning them from working in any financial situation

Re: Northern Rock
 

Golden Hello, Golden Handcuffs (you can demand this every year), Golden Good bye, lovely bonuses :D

Nothern Rock has been a scam for long time, they gambled the lot and lost. The fat cats salaries cannot cover 50bn loss, that's 50 000 000 000 quid

Re: Northern Rock
 

but that presupposes that the FSA aren't inept. Furthermore I understand that there is some legal doubt about how HMG has acted (not for the first time eh!!) in all of this and that disgruntled shareholders will be pursuing the matter through the courts.

I wonder what Gordy would have instructed his puppet Darling to do had this debacle unfolded after he'd just won a general election or had the insititution involved been for example one which was southern based and identified more with a middle/upper class customer base.

Re: Northern Rock
 

True but it can act as a deterrant to others and it can make sure that those who took the decisions do not benefit themselves while their customers lose out.

Maybe there is a case for the Bank Of England issuing periodic warnings to financial institutions about the extent of a bank's bad risk loans granted so that losses are kept in check. The Bank Of England should be empowered to step in when the level of bad risk loans approaches those limits.

Re: Northern Rock
 

I think it was already in a perilous state before the 'run' on withdrawals.

Re: Northern Rock
 

Well, not nationalising it had 'rip off the taxpayer' written all over it, and the Conservatives seem to be advocating that. Lets be clear, this is the NR suits' fault, but they'll put up a defence like 'we were complying with the relevant legislation' which ought to put the focus back on the relevant legislation. Since a lot of this was put in by G. Brown at the behest of his banking chums and since the Tories are bang onside with doing stuff at the behest of bankers, this won't get much scrutiny.

I'm wondering what we can nationalise next, now we've lost our collective virginity. Let's act like real sluts - BAA, perhaps? BT look ripe...

Re: Northern Rock
 

No the Government has pear shaped written all over it. Yet another Government fiasco :rolleyes:

Re: Northern Rock
 

Since its privatization, NR was a ruthless organization, putting up accounts with high interest rates, attracting deposits, then reduce the rates of those accounts, create "new" accounts with high interest, and do the same again with a cylce of a few months. This scam went on and on, where was the FSA?
They did similar scams with the mortgages....

The expansion of NR was frightening, where was the FSA to regulate? And then NR came up with the idea to borrow from the markets, and we know what happened...

Whatever NR did is/was legal...