Northern Rock to be nationalised

[Nattie]

It has just been reported that Northern Rock will be nationalised. There will be more on this story as I rush around to find it.

[Nattie]

Re: Northern Rock to be nationalised

So far BBC and skynews are reporting that Alasdair Darling will announce it shortly.

[Nattie]

Re: Northern Rock to be nationalised

Northern Rock is to be nationalised, the BBC's business editor Robert Peston has learned.

A consortium led by the Virgin group was leading bids to run the beleaguered bank, while a management buyout had also been considered.
But ministers have decided that nationalisation - the first such move since the 1970s - was the only option.
"They felt that the offers on the table did not offer enough to the taxpayer," Mr Peston said.

Source: BBC

[Nattie]

Re: Northern Rock to be nationalised

<H2>Chancellor Alistair Darling is to announce that the troubled Northern Rock bank will be nationalised, according to Sky sources.

Sir Richard Branson's Virgin Group and a rival in-house management team had both tabled offers for the lender.

But it is thought neither bid was considered good enough to be in the taxpayers' interest and the bank will now be nationalised.

From skynews
</H2>

[CYNthesys]

Re: Northern Rock to be nationalised

Does that means the Government must apply for a Consumer Credit Licence then?

[EXC]

Re: Northern Rock to be nationalised

Does that means the Government must apply for a Consumer Credit Licence then?

Interesting question. I 've just been listening to the whinging shareholders
who never seem to realise that when gambling on the success of a company, they don't have a god-given right to win.

[Nattie]

Re: Northern Rock to be nationalised

The BBA have made a statement.
link is here and due to copyright I cannot reproduce it so please click the link
http://www.moneyam.com/action/news/s...cle?id=2684143

[CYNthesys]

Re: Northern Rock to be nationalised

The Treasury Statement
http://www.hm-treasury.gov.uk/newsroom_and_speeches/speeches/statement/statement_chx_170208.cfm

[Nattie]

Re: Northern Rock to be nationalised

BUSINESS AS USUAL
Temporary Public Ownership: What It Means For You

• The Government has announced that in the best interests of customers and taxpayers, it is taking Northern Rock into temporary public ownership.
• Customers are not affected by this change.
• Your savings with Northern Rock continue to be safe and secure, protected by the Government guarantee arrangements.
• The terms and conditions of your mortgage, savings and other products remain unchanged.
• All branches, call centres and other operations remain open for business as usual.

This has been taken directly off the website

[Nattie]

Re: Northern Rock to be nationalised

Q: What does this mean for Northern Rock shareholders?
The general consensus is that it is not good news for shareholders, who have already seen their shares - which were valued at over £12.50 this time last year - slump to be trading at 90 pence at the close of business on Friday.
So the beleaguered firm has gone from being worth £5.3bn to just £375m, and these shares will be suspended on Monday morning.
Shareholders will be compensated, with the amount of money they are to receive set by a government-appointed panel.
If shareholders are unhappy with the offer, there is the prospect of legal action, and Mr Peston says it is "inevitable" that the government will be sued by some of the largest stakeholders which are hedge funds. They have reportedly written to the Treasury calling for 400p per share in compensation.

Source BBC news

[righty]

Re: Northern Rock to be nationalised

What it means that unless they are given special status we are about to witness & Government owned company evicting defaulting mortgage holders - that should go down nicely

The upside is that it might at last give this government an insight into the working of the DCA's & their often appalling tactics - cos if I was a defaulting mortgage holder & was being harassed by a DCA I know where I would complain - & it wouldn't be the local NR or CAB - I would go straight to the top

Let em find out a little about the real world the rest of us have to live in

[Kafka]

Re: Northern Rock to be nationalised

BUSINESS AS USUAL
Temporary Public Ownership: What It Means For You

• The Government has announced that in the best interests of customers and taxpayers, it is taking Northern Rock into temporary public ownership.
• Customers are not affected by this change.
• Your savings with Northern Rock continue to be safe and secure, protected by the Government guarantee arrangements.
• The terms and conditions of your mortgage, savings and other products remain unchanged.
• All branches, call centres and other operations remain open for business as usual.

This has been taken directly off the website

Another interesting question is whether the unlawful penalty charging for struggling customers will continue now with 'our bank'.

I also suspect that there are people with penalty claims against Northern Rock who have had the claims wrongly stayed by courts, with the blessing of the regulator, pending the outcome of the test case (as an excuse).

Sadly we don't have any claimants against NR, but the first penalty charge now or the first threat of repossession will offer a very interesting challenge. Imagine the press opportunity for someone about to loose their house with NR, when the situation could be averted by the bank repaying the unlawful penalties. The Government will bail out the bank's shareholders and shore up its unlawful activities and wreckless speculation, while permitting a householder (who is also a joint owner of the bank) to go under.

[Kafka]

Re: Northern Rock to be nationalised

Interesting question. I 've just been listening to the whinging shareholders
who never seem to realise that when gambling on the success of a company, they don't have a god-given right to win.

I recall something similar with the Lloyd's 'names' some years ago.

These people made an easy fortune by investing money and by allowing their names to be used to bolster the image of Lloyd's, then when the business collapsed they all pleaded for sympathy and handouts, as if they were hard done by. 'Down to their last million' as the Eye would have put it. :Cry:

[EXC]

Re: Northern Rock to be nationalised

It seems that cost cutting is high on the agenda for newly installed Northern Wreck chief Ron Sandler. He's genorously decided that he'll be able to scrape by on a meagre 90 grand. A month.

[righty]

Re: Northern Rock to be nationalised

The Lloyds names pledged everything including their homes & any & all valubles they owned - so they are a bit different to NR shareholders