Bank of England to prop up Northern Rock

[abc1]

Quote from zer0:

Why is it toxic ?
Because obviously 99% of it's peers think the same. The british financial system is even more exposed to the credit crunch than its US counterpart (see the tensions on the LIBOR). If NRK turned to BoE it's obviously because no other bank was willing to lend them even at higher rates. It seems like the general feeling in the City is that NRK is a walking dead. No surprise then for the 2 days of utterly severe selling and bank run.
Maybe i'm brainwashed by the media, but if it was a bargain i guess buyers would have shown since friday. No buyers in the stock market, et no direct bids to take the business.

British fin. system more exposed than the US ? Do you have evidence for this ?

Sure LIBOR went upwards but I saw this as banks protecting themselves amid the uncertainty. Thoughts ?

abc1

 

[zer0]

Quote from abc1:

British fin. system more exposed than the US ? Do you have evidence for this ?

Sure LIBOR went upwards but I saw this as banks protecting themselves amid the uncertainty. Thoughts ?

abc1

Because the british economy is only about finance & housing. It is Wall Street redux. The BoE have less power than the ECB,FED and lost a big chunk of its credibility. If the credit crunch situation goes out of control, the City will suffer more than Wall Street.

Btw, dhpar, I hope you will manage to exit your trade, NRK still looking ugly
"Even one of the London market’s best days of the year could not prevent a further heavy fall for Northern Rock.

Shares in the troubled mortgage lender dropped a further 16 per cent to 257p, taking losses since Friday to 60 per cent, as rumours swirled in the City that Lloyds TSB and HBOS had made low-ball offers. The rumoured HBOS approach was said to have been pitched at just 100p.

Traders said Northern Rock shares had also been pressured by rumours of write-downs in its £8bn ‘Available for Sale’ portfolio"
http://www.ft.com/cms/s/0/c90bb3f6-6682-11dc-a218-0000779fd2ac.html