Northern Rock Timeline
1. 25th July 2007 Interim results published for 6 months ending 30th June 2007.
Interim dividend announced per share of 14.2p (2006 interim - 10.9p) - an increase of 30.3%
(Statutory profit before tax of £296.1 million up by 0.7% compared with H1 2006.)
2. We now know that on Friday August 3rd there were discussions involving at least the Bank of England the Financial Services Authority, Directors of Northern Rock and Lloyds Bank about the BOE approving funds up to £30Bn to Lloyds Bank PLC for 2 years for them to take over Northern Rock.
It is further apparent that Baroness Shriti Vadera and her ex employer UBS Warburg were involved in these discussions.
We also know now that the Chancellor of the Exchequer (who MUST have discussed this with the PM) dismissed this - and rumour has it that he effectively told the Ugandan princess to keep her fucking nose out of Treasury affairs and stick to her Ministerial brief.
(NB : Talking of briefs and the fragrant and unlovely Shriti, the Sunday Telegraph repeat the rumour on November 4th that the noisy Ugandan babe at Somerville purchased wholesale quantities of silken underthings when at Somerville (so , as she told colleagues she didn't need to wash them). The truth is that great sport was had with the lady - as the ultimate trophy for the Lothario's of those quarters was a pair of the vast knickers which they had to remove from the willing, (but alas unsatisfied limbs) of the loudly complaining lady. A correspondent adds (for those with a long memory) that she used to sew in "Janet Reger" product labels to impress he deceitful de-flowerers - which rather gave the game away as JR never made undergarments in such a capacious size).
3. Mervyn King in an interview on BBC "File on 4" ..
"I think most people expect that we have several more months to get through before the banks have revealed all the losses that have occurred, and have taken measures to finance their obligations that result from that, but we're going in the right direction."
"O" Level EConoics Paper Q 1.
How can Directors on the basis of interim profits up by 1% increase dividend by 33% and then less than 2 weeks later be involved in discussions for their take over involving a GUARANTEED Bank of England loab facility of £30Bn. for 2 years ?
Now after this ... (from their website)
Your money is safe with us. All new and existing savings are guaranteed.
Our new guarantee arrangements agreed with the Bank of England and H.M Treasury protects all retail savings in all accounts - regardless of the amount deposited. It applies to all existing accounts, all re-opened accounts and to all new accounts.
BBC Online report in the last hour ..."Northern Rock shares fell as much as 12% in early London trade after a report that savers had withdrawn £10.5bn from the stricken bank."
This whole episode displays criminal incompetence and the grossest misuse ever of public funds ... BOE exposure is now at least £25 Bn and looks like hitting £30Bn. ... not too far distant from the whole annual budget for the MOD. See General Charles Ronald Llewelyn Guthrie, Baron Guthrie of Craigiebank, GCB, LVO, OBE, DL.