"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Saturday, November 24, 2007

Northern Rock -the sharks get bitten on the bum, but others join in for the kill...?

Philip Richards, is CEO of Hedge Fund manipulators RAB Capital. Philip Richards is "is one of the City’s most successful fund managers" (Bloomberg).

RAB Capital bought 6.66% of Northern Rock In September at 275 per share.They also bought some more to raise their stake to 7.1% on October 1st at 195p.

With the current share price at 82p each (ish) Mr Philips has lost his investors so far approx £40 Mn. (Lord Patel has fit of schadenfruede)

Jon Wood, the former UBS trader is CEO of SRM Global Master Fund a Monaco based hedge fund also bought 6.44% (27,131,125 shares) of Northern Rock on 21st November at 85p per share.

With their joint holding, they are threatening to make life difficult for Northern Rock, The Treasury, the FSA and the BOE - they could force an EGM (as owners of 10% of the company)....much goo it may do them.

It would be nice if they were told to fuck off - no such luck, as every day passes the prospect of the taxpayers £25 Bn (and rising) investment into the North East housing market being liquidated recedes....

Meanwhile the ECB is said to be ready to flood Europe with funds this coming week....

Wall Street Journal today ;

" Euro-zone banks are hoarding cash in moves reminiscent of August, pushing up short-term borrowing rates and prompting the European Central Bank to say on Friday it will pump extra funds into markets next week and through the beginning of next year, if necessary." (1st time since September 6th)

".... three-month U.S. dollar London interbank offered rate, or Libor, is also rising. It was quoted Friday at 5.04%, compared with 4.98% on Monday."

The only rational solution is for the BOE to assume control over NR (by legislation if necessary), neither the Gubment or the BOE can allow blackmail or sale with no or little prospect of recovery of the loans made.

Only be nationalisation and run-off / sale of the loans can they be assured of recovering some of our money. King should demand this or resign ... failing that he should be strung up outside Threadneedle Street as a warning against talking about "moral hazard" and not having the balls to really stand up and be counted.

Meanwhile Lord Patel draws your attention to his post on August 13th Lombard Street. Walter Bagehot 1873 before all this was made public and just a week after the NR Board and the BOE were talking secretly about loans of £30Bn.... 2 weeks after the Board had declared a divided rise of 33% on the basis of increased profits of 1%.

Bagehot wrote ...

"...[a very high interest rate] will operate as a heavy fine on unreasonable timidity, and will prevent the greatest number of applications by persons who don't require it. The rate should be raised early in the panic, so that the fine may be paid early; that no one may borrow out of idle precaution without paying well for it; that the banking reserve may be protected as far as possible."

Too little and too fucking late and now we all pay the fucking price of their "timidity".


Stef said...

yet more disgraceful behaviour in the North East...


Stef said...

and if it wasn't deliberate the line 'much goo it may do them' has to qualify as typo of the week...

Shutter said...

All typos are unintended except for the deliberate nes.

Burnt into Lord Patel's retina is the image of the lady's knees . uprding skirt etc., as she drives Jack up (down ?)the ramp of that unlovely pile and shoves the gear shift hard into second.

(C) Very Seriously Disorganised Criminals 2002/3/4/5/6/7/8/9 - copy anything you wish