The US credit issues have caused a domino effect throughout the capital markets and banking industry, hence its effects on the UK market.
The market doesn't agree with you I'm afraid.
As far as I read it and from the chatter I've heard the best offers are talking about deferred payback of interest on not just the penal rate but the bulk of the BoE exposure and a staged repayment of capital as and when conditions allow.
As for there being better offers in the wings, maybe but only as a pre liquidation fire sale or worse.
The BoE can only support NRK until something like the 10 February which when you consider the Christmas period will take 12 days out of there isn't much time to compete due dilligence or indeed run any proposal by the board and within the restrictions of PLC structures.
If there is any value in NRK, it's absorbtion into another institution creaming off the people who are better than BBB and tied in for periods whereby rates can be ramped. The problem with this is the wasteage of loans / write downs and that it will involve numerous redundancies in the NE which has a number of marginal seats. (think May 2009 Gordon vs Dave).
Remember this government was prepared to **** £50m against the wall in April / May 2005 to save 2 seats in Birmingham, what will they do for 6 seats in the North East and to mantain stability in the banking sector?
Deliquancy rates have been rising for 18 months and the CML predicts a big increase in repos next year. With inflationary pressures building the wriggle room for Merve King to cut rates is limited and I think the chances of another couple of 1/4 point rises by June are about 50/50.I'd be a lot more worried if NR or other lenders starting seeing higher delinquency rates and defaults.
many uk lenders are backed by the big US finance houses. it's mainly the niche lenders such as paragon, infinity, victoria mortages, advantage etc who have been used to getting easy funding from merrill lynch, investec etc but suddenly the big US players have put the brakes on lending money, particularly where there's higher than average risk.The US credit issues have caused a domino effect throughout the capital markets and banking industry, hence its effects on the UK market.
I'm currently having a break from dealing with death and destruction (mainly death) and setting up a Ltd Co (not law related) and getting involved with a couple of other non law projects (oh and sh*tty nappies too).what's your background sloper, if you don't mind my asking. you seem quite financially savvy (for a lawyer )
I think Goldilocks has it about right on the banking / financial sector, but also think of the knock on effects of reduced trading volumes and tighter lending criteria and ramped costs on profitabilty across the board.I am bearish on the banking and mortgage related sectors
So they tend to be LOMBARDs then?(think History of Arts at Durham not bright but awfully decent sorts, yah)
Why do you always assume anyone who disagrees with you is a 'lefty'? It's all relative, I mean, it could just be that you're a closet Nazi!Was a time when most big industries in Britain were Nationalised, I seem to recall Mrs Thatcher and her goverment sold everything, whether we like it or not the one thing she was right about (and i hated her before all you lefties flame me lol) was that they were inefficient drains on the resources of the country poorly managed and poorly run with a workforce mainly ruled by union barons who wouldnt know a days work if they tripped over a yellow vest. Would we be better off with renationalising ?............:5:
Blue glasses removed...yes i see the necessity to re nationalise in this instance, i thought other commente were referring to a mass re nationalisation, yes the people who work in Northern Rock and indeed the people who have money mortgages etc certainly need protecting.Don't think it's the same as the monopolies of the 70s. The idea here is that a quick sale necessitates a sale for next to nothing, while a period of public ownership would buy time fro an orderly sale that protects the assets a bit more.
There's another article on it here. it's not the Grauniad (despite the URL), but it is The Observer (so you still might need your blue safety lenses )
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