"“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

Wednesday, December 05, 2007

Northern Rock to be nationalised - Good News at last

The confused, dumb and extremely frightened men now responsible for sinking $30 Bn. plus of tax payer;s money into Northern Wreck are busy adding a belt to their braces.

A Nationalisation bill for Northern Rock is being agreed with the Conservative Party (NOT WITH VINCE CABLE IT SEEMS) to put Northern Wreck plc into public ownership - and to rush it through in one day before Christmas.

The Government wants interested parties to submit final deals by the end of the week. Parliament goes into recess on December 17 and returns on January 7.

The Government is required to report to the European Union on February 12 over the bank's future and address any state aid issues.

Northern Wreck's finances get worse daily as canny Geordies pull out their wedges as nothing seems to happen. Two weeks ago, it was losing £200m a day in deposits. Price Waterhouse Coopers who audited Northern Wreck have billed £1.8m in fees.

Richard Sexton, PwC's UK head of assurance,told the Treasury Select Committee the firm made £700,000 in fees from issuing "no more than 10" letters of comfort for the bank's securitisation programme in 2006. Securitisations underpinned its aggressive funding model.

PWC claims it was not required to audit liquidity risks and merely provided so-called "comfort letters" in relation to Northern Rock's funding transactions.

UPDATE If you arrived here by Alphaville /FT you might like to see previous posts on the Northern Wreck saga. here

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