http://www.bloomberg.com/apps/news?pid=20601087&sid=aR399_tyWImw&refer=home
Very interesting for the Brits to do such a thing.
Very interesting for the Brits to do such a thing.
Northern Rock, Interesting News
- Thread starter EMRGLOBAL
- Start date
Huge problems. Huge.
And the same problems are lurking, like so much toxic mold, just beneath the surface of many, many banks here and abroad.
And the same problems are lurking, like so much toxic mold, just beneath the surface of many, many banks here and abroad.
Let's trace the damage estimates:
I think it started at 12 billion pounds, they next upped it to 25 billion pounds, now the current "official" estimate is 55 billion pounds, and one commentator said it will top out at over 110 billion pounds.
How man of these can the British government (i.e. taxpayers) afford? Will RBS be even bigger?
I think it started at 12 billion pounds, they next upped it to 25 billion pounds, now the current "official" estimate is 55 billion pounds, and one commentator said it will top out at over 110 billion pounds.
How man of these can the British government (i.e. taxpayers) afford? Will RBS be even bigger?
Our financial adviser Goldman Sachs has concluded from a financial point of view that a temporary period of public ownership better meets our objective of protecting taxpayers....
Hum...U.K. government advisor Goldman Sachs = U.S. government advisor Goldman Sachs = X,Y,Z country advisor Goldman Sachs ...
Quote from ASusilovic:
Our financial adviser Goldman Sachs has concluded from a financial point of view that a temporary period of public ownership better meets our objective of protecting taxpayers....
Hum...U.K. government advisor Goldman Sachs = U.S. government advisor Goldman Sachs = X,Y,Z country advisor Goldman Sachs ...
I wonder if Goldman was also hired by Hugo Chavez.
Northern Rock total balance sheet liabilities are 113 billion pounds.
It would be very suprising if cost of Northern Rock takeover would exceed 5 % of balance sheet.
Ie. in finnish bank crisis which was very severe, bank called SKOP was in extremely bad shape due to loans it had given to companies. It had balance sheet of 13,5 billion ⬠and total cost to taxpayers was 1,6 billion euro. (GDP in Finland declined around 11 % between 1991 and 1993.)
Northern Rock should be in far better shape than SKOP.
"It would be very suprising if cost of Northern Rock takeover would exceed 5 % of balance sheet."
What's the cost of takeover got to do with it? NR has been nationalised and the UK govt has already made loans of £55b to NR. I wouldn't be suprised if the govtends up financing the whole £100b+ loan book, seeing as the majority of the half wits that got it where it is are still in place.
What's the cost of takeover got to do with it? NR has been nationalised and the UK govt has already made loans of £55b to NR. I wouldn't be suprised if the govtends up financing the whole £100b+ loan book, seeing as the majority of the half wits that got it where it is are still in place.
This is the tip of the iceberg. There's never just one cockroach.