Monday, August 10, 2009

Northern Rock...the mess continues

Nationalised bank Northern Rock announced losses of half year losses of £725 000 000. 22 000 of its mortgage customers are in arrears and 40% of their customers suffer form negative equity.

This is the consequence of Northern Rock's expnasion programme which involved lending to high risk groups of borrowers with 100%+ mortgages.

Not surprsingly Alistair Darling said he was in "no hurry" to try & find a buyer for the ailing bank.

Posted by Sean Wilson, APFS, Independent Financial Advisers (IFA), Swindon, Wiltshire.


Matthew of Sunny Swindon said...

The huge bailouts and government guarantees might have acted as a life-support machine to keep some of the UK’s biggest banks technically alive, but they have not been revived. Northern Rock is a corpse!

You rightly say this week’s figures from the state-owned bank Northern Rock £725million in the first half of 2009. That is remarkable rise of 24 per cent on the same period in 2008.

Just wait and see what this hopeless government does next...
New Labour will split Northern Rock into two and sell off the ‘good’ part as quickly as possible – which will mean cheaply – so that it can claim to have got a return on taxpayers’ money before the General Election.

It's a cheap political stunt posing as an economic policy.

Sean Wilson said...


Thanks for your comment.
Interstingly there was a survey done on IFAs recently about who they would like to be Chancellor.

40% said Vince Cable...I've got his credit crunch book sitting on my shelf waiting to be read. :)