"“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

Tuesday, November 13, 2007

Northern Rock - a Turd by any other name

FT Alphaville have posted the "confidential details " of the BOE memorandum about the sale of Northern Wreck (Codename "Blackbird" AKA Turdus merulus of the Family Turdidae - someone at the BOE with a keen sense of ornithological humour ?)) for prospective buyers.

The document is curious - it says the Wreck expects to have a credit line of £24bn from the taxpayer (AKA BOE) as at 1/1/08 - although by most people's reckoning it stands at £30Bn. today.

The loan rate and other terms, length, termination triggers etc., are not available but ..."any potential purchaser/investor... will need to have discussions with the Bank of England and its advisers before concluding any proposal."

The business is unsaleable without this loan and this is tacitly accepted - in 2010 the Rock will require at least £6bn from ..er..." a Replacement Facility"

3 outlines scenarios are given ... all demanding BOE support and evidence that they just want this mess off the doorstep of Threadneedle Street.

• sale of the whole company; (In two words Im Possible, you could not GIVE the company away)

• sale of the basic physical infrastructure of the business, viz. the branches, IT and call centre, - the loans from the remaining stupid, short siighted retail lenders who haven't even now moved their funds to higher and safer ground.

• sale of above plus those securitised mortgages, and a "run off" of the rest - in which case the Credit Rating agencies are left withj a problem to rate and this could leave to a "trigger" by which the holders can demand their money back. (The Credit Agencies are remaining remarkably silent re the value of "Granite" etc.,

Anyone who still holds shares is a mug.


George Dutton said...

You must watch this. Federal Reserve Chairman Alan Greenspan on 7/16/03.

"You have told the American people that you support a trade policy which is selling them out." ---Rep. Bernard Sanders to Federal Reserve Chairman Alan Greenspan on 7/16/03."

"You MUST watch this impassioned five minute video clip! Rep. Bernard Sanders (Independent-Vermont), now a US Senator, dresses down Federal Reserve Chairman Alan Greenspan in front of the House Financial Services Committee on 7/16/03."

"Rep. Bernard Sanders vs. Fed Chairman Alan Greenspan"...


Greenspan is now trying to do a Ponchus Pilot and wash his hands of the the accelerating world financial crisis. He will fail.

George Dutton said...

"Last week, U.S. Senator Bernie Sanders (I-VT) grilled White House budget director nominee Jim Nussle at Nussle's Senate confirmation hearing. Sanders forced Nussle to go on record admitting that at a time the White House is trying to prevent better-funding children's health care programs, he supports giving the members of Wal-Mart's Walton family alone a tax break worth more than $30 billion"

"Sanders fights Bush Nominee on WalMart tax breaks"...


جبهة التهييس الشعبية said...

free samina malik



George Dutton said...

"Talk of Worst Recession Since the 1930s"...


"Thought the subprime mess was bad? Wait till the accountants get involved"...


"Credit Card Debt a $915 Billion Disaster-in-Waiting for Banks"...


"Deutsche Bank Foreclosures Tossed Out of Ohio Federal Court - "They Own Nothing!"...


"Police worry about abandoned homes"...


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