
Try this
Deductions are also equally made from Tier 1 and Tier 2 capital in respect of the excess of expected losses over provisions, whereas under Basle I Tier 2 capital benefited from the add back of collective provisions.
The introduction of Basle II, together with the planned disposal of capital inefficient assets and continued capital management such as the Whinstone programme results in an anticipated regulatory capital surplus over the next 3 to 4 years. This surplus will enable the reduction of previously planned subordinated debt issues and permit capital repatriation of up to £300 to £400 million over this period. Such repatriation will follow the release of capital as a result of asset disposals and will ensure that available capital is sufficient to support existing rating agency credit ratings and maintain an appropriate mix of Tier 1 and Tier 2 capital.
During the first half of 2007 we issued $650 million (£328 million equivalent) of Upper Tier 2 subordinated debt.
Or as CEO "Shagger" Applegarth , in between visits to the buy to let department, could more simply explain this recklessness with the shareholders funds in answer to Question 135 when he met the Select committee ..
" ....when you get your Basel II approval, the relative risk weighting of certain assets in your balance sheet changes. So what we had, because of the quality of the loan book, was you saw our risk weighting for residential mortgages come down from 50% to 15%. That clearly required less capital behind it, so that links to why we were able to increase the dividend.."
It is a reasonable assumption that to the Directors "We continue to treat securitised assets as “off balance sheet” for regulatory capital purposes, resulting in deductions from both Tier 1 and Tier 2 capital for the first loss piece retained by Northern Rock." meant - we can now pretend that we don't need to have capital to back up Granite and all that other other SIV shit.
..and therefore we can now pay out a dividend increase of 30.4% 3 days after the FSA gave us waiver approval. Luvvly Jubbly. Trebles all round and Adam is off to the Presidential Suite in the Four Seasons Hotel in Washington with Amanda Smithson to shag his brains out.
Hopwever 2 weeks later, by August 7/8/9 th the Directors were having a chat with Mervyn's minions about raising the odd £30Bn. (See BBC Radio 4 interview with the King of the Bank) simply to keep the business going ... and eventually they had to ditch the interim divvy entirely.
Incidentally to Question Q 220 Chairman of the FSA Sir Callum McCarthy ( 64 on February 29th) who it was announced on January 12th, just ahead of the report's publication that he would be "standing down" in September) strongly rejected the notion that the Basel II waiver process was a "a box-ticking exercise".
The next section of the report after the above is Section 46.
It commences, " The problems affecting Northern Rock were those of liquidity and funding, rather than solvency" ... too fucking right, the Directors were pissing away all the money on divvies they couldn't properly fund ... a liquidity problem that resulted in insolvency... ie. they could not pay their debts as they fell due... but of course the CEO had unloaded his shares at the top of the market i January ... the divvy was just another ploy to suck in the mug punters.
Dark secrets lurk somewhere in this unholy and (to the taxpayer) every, very, expensive mess.
******** Although the "Highlights" Press release can boldly claim "Total underlying assets of £113.0 billion - an increase of 28.3% from June 2006 ,underlying assets of £88.0 billion. Statutory assets of £113.5 billion, growth of 27.8% . Capital assets - now you see them, now you don't need to count them in under Basel II **** and all approved by the FSA !!!!
It is interesting to note that on Monday, 29 October 2007 Lord Darzi of Denham Parliamentary Under-Secretary, Department of Health in answer to a question from Lord Morris was only able to give such figures up to 2005. But they were alarming"In conclusion this first year of data collection under the mandatory surveillance programme for Scotland has shown that healthcare associated Clostridium difficile associated disease is a significant problem throughout the healthcare system in Scotland. CDAD is today considered the leading cause of healthcare associated diarrhoea in the industrialised countries."
1999 | 2001 | 2002 | 2003 | 2004 | 2005 | |
Mentions of C.diff | 918 | 1,150 | 1,338 | 1,702 | 2,155 | 3,697 |
Number of these where underlying cause of death is C. diff | 499 | 661 | 709 | 912 | 1,187 | 2,008 |
Figures from ONS for deaths involving CDI for primary care trusts cannot be provided "without disproportionate costs".
The number of deaths in hospital in Fife involving Clostridium difficile were 23 in 2005, and 41 in 2006 , where it was the main cause have gone down, from 13 in 2005, to 11 in 2006 which means that thenumber of deaths where the bug was considered to be a contributing cause trebled in one year.
This whole shindig was a pivotal exercise in Balkan real politik and Putin's Russia, leveraging power through it's energy policy. The pro western Democratic Party faction in nationalist Kostunica's Cabinet, dropped opposition to the deal, ( a view supported by Isvestiya on Friday) needing the Prime Ministers support for incumbent President Boris Tadic, (he is allowed 2 x 5 yr terms) to defeat an ultranationalist challenger Tomislav Nikolic, the deputy leader of the hard-line nationalist Serbian Radical Party, in the country's runoff presidential vote on Feb. 3rd. Nikolic has in the past called for military intervention in Kosovo if it becomes independent and splits from (Greater) Serbia - he also would refuse to hand over fugitives such as Radovan Karadzic and Ratko Mladic.
The agreements also reflect the joint Russian / Serb opposition to a western supported independence for Kosovo. (Even though Tadic is said to advocate closer ties with the EU)
"Serbia very deeply respects the position of Russia on Kosovo," Tadic publicly told Putin. "We will defend our interests in Kosovo, operating on the basis of international law, and we will never do otherwise."
Putin was, as usual boastfully pushing Russian interests, and to please the public, resolute ; "Russia is categorically against a unilateral declaration of independence for Kosovo," he said, adding that it could "seriously damage the system of international law and have negative consequences for the Balkans and affect stability in other regions." ( Sub text "Watch it you unruly Ossetians")
Russia has historical, cultural, religious and linguistic ties with Serbia , they threatened a veto last year in the U.N. Security Council to block a Western-backed plan for internationally supervised statehood for Kosovo.
Ruairi OConnell our man in Pristina's blog has been brought to readers attention before ... his naive ramblings make one wonder how he will deal with these pesky Russki's..
.."We have to deal with the situation as best we can. And we do have to deal with it, right now; this is vital for European Security, but, most importantly of all, to give all the people of Kosovo a hope for a better life." ... and presumably a supply of natural gas.
See : Guradian U.S. worried about Russia's Balkan energy grab (Reuters) Friday January 25 2008
And Reuters also had a high level contact ..."A confidential Serbian government document obtained by Reuters said Washington was considering using diplomatic channels to express its concern at the deal and point out the shortcomings. "
"The U.S. side warned about the political influence Moscow would gain by controlling energy resources in Serbia and the region, and expressed a negative assessment about the economic justification of South Stream," said the transcript of a high level meeting between U.S. and Serbian officials in Belgrade."
A State Department spokesman told Reuters via telephone from Washington that the U.S. continued to view Nabucco as the best scheme to provide energy diversification in Europe......"the best option for achieving European energy diversification, particularly with regard to providing a direct route to Europe for Caspian and central Asian gas supplies".What NU Labour spinners would call ..er... an ..er .. "aspirational" view. What less well equipped might describe as being outflanked and those who express their political views more directly...er.."Fucked"
However the whole of Southern Africa is facing huge electricity supply problems.
The SA Power Pool*** - a body that co-ordinates the planning and operation of electricity power systems among South African Development Community member states — total annual demand will clock 44 689 megawatts by the end of 2007Among the SA government’s new proposals:
against combined net generation capacity of 45 000MW.
At the current growth rate, total regional demand for electricity is projected to hit 45 827MW by the end of 2008; 47 920MW in 2009; 48 795MW in 2010; and 50 291MW in 2011.
Capital projects totalling US$5.2 Bn are required simply to meet the projected shortfall in the region.
The bodies of the policemen, some showing bullet wounds, were taken to Ghazni's hospital. A video shot by AP Television News showed a bullet-riddled police vehicle close to the area where American troops conducted the operation. The metal gates of compounds raided were damaged, and mud walls on nearby houses had bullet holes in them.
Faced with troop shortages, U.S. and NATO-led troops rely heavily on the use of airpower in their fight against the Taliban and other militants in Afghanistan. Such tactics have caused many civilian casualties in past years, and at times caused friction with President Hamid Karzai, who has urged caution and coordination with Afghan authorities.