Follow Us on Facebook Follow Us on Twitter Follow Us on Google+ Follow Us on Pinterest Follow Us on Tumblr Visit our YouTube Channel Subscribe to our Feed Subscribe via FriendFeed

Connect With Us

Are The Rumors About Northern Rock Bank True

by Jim ONeil on February 26, 2011

in uk loans news

This week, media reports claim that the nationalized bank Northern Rock may soon re-launch its mortgage products. This would include an LTV mortgage arrangement designed for first time buyers. It would be the first deal of this kind since the bank became nationalized during the credit crisis.

The bank is reportedly preparing for a stock market flotation or a sale. The move could involve repurchasing high risk mortgages that are currently with its sister firm. Northern Rock was separated to form two individual banks in 2010 and the bank assuming the high risk mortgages was dubbed the “bad bank”. The “good bank” received consumer deposit accounts and low risk home loans.

If part of the “bad bank” proceeds are purchased, this means that taxpayers will receive faster payment. Since Northern Rock still experiences large losses, purchasing mortgage portfolios could enable it to become profitable more quickly. The move could pave the way for Northern Rock to reenter the private market. The appointment of advisers to oversee the sale or flotation of the “good bank” may occur soon.

It is ironic that the “bad bank” is the profitable one. The low base interest rate led to less than ten percent of the mortgages considered high risk actually falling into a state of arrears. During the first half

of 2010, Northern Rock Asset Management had pre-tax profits of £349.7 million. The “good bank,” on the other hand, reported over £142 million in losses. Since the government guarantee was retracted, many people have moved their savings from this bank.

The Financial Services Authority, a mortgage regulator, issued agreement that the bank could reduce its cash reserves and once again begin lending. As part of this, it agreed to let Northern Rock again purchase mortgage portfolios. As they did in 2009, many are speculating who the potential buyers would be in event of a sale.

emmerieker heintreinf

The earth’s government authorities have spent a lot more than ten trillion dollars supporting financial services based on the Worldwide Financial Fund. The United kingdom has committed a lot more than two trillion dollars of this to its financial sector. Most is incorporated in the form (not “former”) of financial loans or guarantees, but hundreds of Vast amounts of pounds happen to be spent bailing the banks. This week’S (?)these most of the large United kingdom banks confirming their results, and tax payers will discover how their opportunities happen to be carrying out.

Monday may be the turn of BARCLAYS and HSBC. Both these banks switched lower the sale of the aid of THE United kingdom tax payer. BARCLAYS visited the center-East rather raising eleven . 5 billion dollars from traders there. HSBC made the decision to request its share holders FOR help raising a lot more than twenty billion dollars within the privileges problem. Both banks are required to report quite strong (not “stronger”) RETURNS using their investment banking divisions, capitalising on recent stock exchange increases. But both could be hit by money owed.

Lafferty Group

Undoubtedly The easiest way of stopping the kind of disaster we’ve got in to the past few years is always to separate investment banking (not “bankings”) entirely FROM retail banking and also to prevent FROM (?) Inside The SAME organisation. I believe what we should possess the moment is kind of it’s heavens for investment bankers because they can use and abuse the deposits and also the savings from the British population.

Forecasts of today’s figures vary, but news of vast amounts of dollars of profit (no”S”) once (?) rid of it individuals suffering inside a recession tax payer relief or otherwise.

Richard Scott, BBC NEWS.

Katie H

Not sure sounds like bluffing to me…they are in one mess and still try to keep their lies brushed under the carpet

Comments on this entry are closed.

Previous post:

Next post: