Northern Rock set for sell-off

[Fusen]

Northern Rock set for sell-off

Sun Sep 16, 2007 1:26pm BST
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<!--[if !IE]> Begin: Story Text <![endif]--> By Steve Slater and Sumeet Desai
LONDON (Reuters) - Embattled bank Northern Rock is preparing for a sell-off that could see its 100 billion pound mortgage portfolio divided between the country's other major banks, the Sunday Telegraph said.
A funding crisis at Britain's fifth-biggest mortgage lender has seen its savers withdraw an estimated 1.5 billion pounds in the last two days, raising fears it will need more help than the emergency funding pledged by the government on Friday.

Fears are also rising that the bank's woes could have wider economic, housing market and political consequences if not addressed quickly.
A plan under discussion between government and Bank of England officials was effectively a private sector rescue of the lender, involving other banks and the central bank, the Sunday Telegraph said.
"If the run on deposits looks out of control, Northern Rock would effectively be nationalised and put into administration so it could be wound down," the paper quoted an official as saying.
The paper quoted a source close to Northern Rock as saying if its shares fall heavily again on Monday then a fast break-up and sale of its assets "looks inevitable".
The BoE and Northern Rock declined to comment on the report.
Customers withdrew about 1 billion pounds from Northern Rock on Friday, according to people familiar with the situation, and newspapers estimated at least another 500 million pounds was taken out on Saturday. Continued...

http://uk.reuters.com/article/wtMost...69575720070916

[Phreakster]

Yep...Northern Rock don't care about all its saver aking money out...apparantly the savers hold nearly £24 Billion of the companies worth....best sell the shares quick because they will be worthless soon.

[DB]

Surely you mean buy the shares?

I have friends in the financial sector who are borrowing money just to buy shares in Nortern Rock, this storm in a teacup will make them a handsome sum.

[Over Carl]

Surely you mean buy the shares?

Erm, if you read the original article,

"If the run on deposits looks out of control, Northern Rock would effectively be nationalised and put into administration so it could be wound down," the paper quoted an official as saying.

[Phreakster]

Well your friends in the financial sectors don't know how to play the market....guaranteed the share prices will drop tomorrow for Northern Rock as all the other banks will be hesitant to take on Northern Rocks assets.

Just the bad publicity in the media about Northern Rock is enough to make the shares drop. But Good luck investing in a sinking ship.

[DB]

Im not worried in the slightest.

The time to buy is now !!

[Phreakster]

Im not worried in the slightest.

The time to buy is now !!

I hate to say I told you so....but I told you so!

[Gel]

Im not worried in the slightest.

The time to buy is now !!

Some people have no clue.

Given their current status who is going to take on a mortgage or put savings in Northern Rock, nobody trusts the government with their most valuable possessions second only to their loved ones.

No trade = No earnings = Insolvency.

Try to keep in mind that for the shares to go up they are based on several things, one being true value and speculation.

Sure if there is a takeover then the shares will rise..but not by enough to make it worth the gamble and no banks can really afford to buy it anyway as there is a global liquidity crisis you see..........which is why the bank of england has said it will extend it's emergency lending facility to the new owners too.

DO NOT BUY SHARES IN NORTHERN ROCK UNLESS THEY ARE SILLY LIKE £1

[MsDG]

nobody trusts the government with their most valuable possessions second only to their loved ones.

Why would I want to trust the government with my rampant rabbit?

[Gel]

Yep...Northern Rock don't care about all its saver aking money out...apparantly the savers hold nearly £24 Billion of the companies worth....best sell the shares quick because they will be worthless soon.

Total customer deposits are £25 billion, total scurities however are 110 bil, this makes them more solid than Bradford and Bingley and Alliance and Leicester...who are next on the bank run list btw

[Gel]

Why would I want to trust the government with my rampant rabbit?

Hey DG, whats with the MsDG?

[Phreakster]

DB I'd get your missus to go on the sick, wouldn't want to work at Northern Rock especially being a manager there.

http://news.bbc.co.uk/1/hi/uk/6998507.stm

[DB]

Why not mate, shes making a mint.

We are quids in, she only works 14 hours per week. They now want her working 12 hour shifts 5 days a week, on her rate thats a hell of a lot lads.

Shes safe mate, ive told her any shit off anyone and shes to stay behind the safety glass. then stick her tongue out and blow raspberries at them

[MsDG]

Hey DG, whats with the MsDG?

0 / 10 for observation. Its been like that since just after xmas!

My previous "Dirtygirl" user name was causing issues when I used other peoples PC's to log onto DF. To cut a long story short, if someone see's the word Dirtygirl pop up in the internet explorer autocomplete they immediately assume that the wife/daughter/gran is a member of some sordid website!

[DB]

0 / 10 for observation. Its been like that since just after xmas!

My previous "Dirtygirl" user name was causing issues when I used other peoples PC's to log onto DF.

Tell the truth, your fella asked you to change it coz he saw the talent on DF and got jealous.

[Fusen]

government has backed northern rock and said it won't let any customers lose money...so now it's simply a case of has the brand name become too tainted, if it hasn't I would buy shares

[Gel]

government has backed northern rock and said it won't let any customers lose money...so now it's simply a case of has the brand name become too tainted, if it hasn't I would buy shares

Bit more than that I'm afraid...they cannot guarantee the funds forever and by making this guarantee they have to apply it to all banks. Which is a really really really bad thing to do.

It has the potential to bankrupt the country.

Thanks for the expo DG

[ant3b]

hmm im getting a mortgage with nothern rock.... not sure what to do , i dont think they will go under but still its a bit worrying

[DB]

Well the shares are climbing again, ho hum

[ant3b]

awesome