"“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

Friday, November 16, 2007

Northern Wreck try to gag the Press, Comment, and knowledge of their Memorandum of Sale.

On Tuesday we reported that FT Alphaville had posted the memorandum sent to potential purchasers of Northern Wreck.

As a result of this posting the High Court ruled at around at around 6.50pm on Tuesday 14th for Northern Rock Directors, that the FT are injuncted against revealing the contents of this memorandum. This temporary injunction runs until Tuesday when full evidence in the case will be heard.

Initially Northern Rock sought an injunction which would prevent the whole of the media from reporting anything about the sale memorandum.

Northern Rock wanted the injunction to prevent publication of the names of those who had been provided with the sale memorandum, notwithstanding the fact that names of potential bidders have already been widely published.

Northern Rock also sought an order that would have prevented disclosure of the fact that it had obtained an injunction. The FT resisted this and the order was refused.

Northern Rock intended that an injunction should be obtained anonymously, but this was also unsuccessful.

In view of the fact that the hearing went on so late, the judge granted a temporary injunction lasting seven days in order to preserve the position until he could hear full evidence. The FT argued that there was a substantial public interest in the story and that it was extremely important that shareholders were entitled to know where they stand. The Judge took the view that at an emergency hearing he would give priority to the fact that the sale memorandum contained a written confidentiality undertaking entered into by the original recipients of the document, and that he would protect this pending a full hearing of all the evidence.

Northern Wreck published the following on their website...

NORTHERN ROCK ANNOUNCEMENT

Northern Rock Plc (the “Company”) announces that it is aware that a confidential memorandum sent to parties with a potential interest in all or part of the Company under strict confidentiality obligations has unfortunately been leaked to a newspaper group. The memorandum appeared on a website controlled by that group.In order to protect the integrity of the information which has been provided to potential purchasers and to help ensure it can implement its strategic review in a way designed to achieve the best outcome for the Company and its stakeholders, including shareholders, creditors, customers and employees, the Company has obtained an injunction restricting publication of the information contained in the memorandum.

The Company believes that further speculative reporting based on the illustrative information in the memorandum may jeopardise the complex discussions and negotiations taking place in connection with its strategic review.It has been reported that the memorandum included certain illustrative transaction structures and financial information prepared in connection with the Company’s strategic review.

As was made clear by the memorandum the financial information was prepared solely to illustrate the potential financial impact of these transaction structures on the Company’s business.None of the information reported as being in the memorandum should be viewed as guidance to the market as to future outcomes of the strategic review or as an accurate representation of future results.

The memorandum was not prepared with a view to public disclosure or in compliance with rules, guidelines or policies relating to public disclosure.Announcements regarding the outcome of the strategic review will be made as and when appropriate and any information that is material will be published at that time. There can be no certainty that the discussions taking place with interested parties will lead to an offer for the Company or for all or any part of its business.

The Company confirms that the existing deposit guarantee arrangements announced by HM Treasury and the revised facilities agreed with the Bank of England announced on 9 October 2007 remain in place.

Lord Patel has copies of the memorandum and will shortly post them. The significant parts were dealt with in the post on Tuesday. However the whole thing is available we now discover as a pdf file at http://www.banks-implode.com/NR-Secret-Memo.pdf

If you are still foolish enough to own shares, get rid.... Now at all time low of 133p.

The behaviour of the Directors of NR , the BOE, Darling FSA is outrageous and in many respects criminal . The market in NR shares is totally false and dishonest.

9 comments:

George Dutton said...

"Greenspan `Mess' Risks U.S. Recession, Stiglitz Says (Update4)"


"Nov. 16 (Bloomberg) -- Joseph Stiglitz, a Nobel-prize winning economist, said the U.S. economy risks tumbling into recession because of the ``mess'' left by former Federal Reserve Chairman Alan Greenspan"

``I'm very pessimistic,'' Stiglitz said in an interview in London today. ``Alan Greenspan really made a mess of all this. He pushed out too much liquidity at the wrong time. He supported the tax cut in 2001, which is the beginning of these problems. He encouraged people to take out variable-rate mortgages.'' ...

http://tinyurl.com/2brprt

George Dutton said...

"Countrywide, Washington Mutual Play Shell Games"...

http://tinyurl.com/yw8862

"Europe January-August Trade Gap With China Soars 25% (Update3)"...

http://tinyurl.com/2htsnm

"Bankruptcy Law Backfires as Foreclosures Offset Gains (Update1)"...

http://tinyurl.com/22ce4n

Anonymous said...

Mr Egg-head has gone.

Anonymous said...

...because any future owner will have to pay back about £24billion of Bank of England loans...

George Dutton said...

"Joseph Stiglitz, a Nobel-prize winning economist"

"Alan Greenspan really made a mess of all this. He pushed out too much liquidity at the wrong time. He supported the tax cut in 2001, which is the beginning of these problems"

Stiglitz is WRONG the "beginning of these problems" can be summed up in one word...Thatcher.

George Dutton said...

"Warning over rate rise by 'devious' lenders"...

"Experts warned last night that lenders were expected to put up rates on mortgage deals over the next couple of months, in an attempt to preserve their profit margins by creaming more money from borrowers ahead of any interest rate cut by the Bank"

"Banks have always been entitled to move their variable rates independently of the Bank of England, but have very rarely done so and even then only for new customers. This is the first time a major lender has hit its existing customers with higher bills."

"The series of moves by High Street banks - cutting savings rates and increasing borrowing rates, despite the official Bank of England rate staying stable - renews fears that the global credit crunch will land millions of consumers with a major financial headache over the coming months."

"On a fixed-rate deal of 4.95 per cent taken out two years ago, the monthly repayment was £1,031 a month on a £250,000 interest-only mortgage. These payments will shoot up to £1,583 when the deal ends".

"The increases come at the same time as soaring food bills, increased council tax and record petrol prices."

"Ruth Lea, a leading economist, said: "Most people's pay is only going to go up by two per cent or three per cent, but these mortgage rises are a 50 per cent increase."...

http://tinyurl.com/25xtlw

George Dutton said...

"Goldman warns of a substantial US recession"

"Goldman Sachs has sent a shudder through the debt markets, warning that sub-prime mortgage losses could force banks to slash lending by $2,000bn (£980bn) and push the United States into a deep recession"...

http://tinyurl.com/36nqdz

Recession? should that not read Depression.

George Dutton said...

Bear Stearns didn't disclose trading in Cayman funds, official says
Published on Thursday, November 15, 2007

"NEW YORK, USA (Bloomberg): A Bear Stearns Cos. unit failed to oversee trades it made on its own account with the firm's two bankrupt Cayman Islands hedge funds, breaching its own conflict guidelines, a Massachusetts official said in a regulatory complaint on Wednesday"...

http://tinyurl.com/34swac

George Dutton said...

"Oil leaders' private debate televised by mistake"

"'Kill the cable, kill the cable,' shouted the security guard as he burst through the double doors into the media room at the Intercontinental Hotel in Riyadh, followed by Saudi police. It was too late"...

http://tinyurl.com/yq9kdw

"Chavez: Oil price will hit $200 if Iran attacked"...

http://tinyurl.com/2dj7p3


"Although completely unreported by the U.S. media and government, the answer to the Iraq enigma is simple yet shocking -- it is in large part an oil currency war. One of the core reasons for this upcoming war is this administration's goal of preventing further Organization of the Petroleum Exporting Countries (OPEC) momentum towards the euro as an oil transaction currency standard"...

http://tinyurl.com/4jecr


"The Petro Dollar,Iraq,Oil and Bush"

"Hussein was selling Iraq's oil in EUROS,the U.S. invaded to take control of the oil to sell in U.S. Dollars"...

http://tinyurl.com/2fgsc8

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