How are Northern Rock repaying its debt to the taxpayer when the Government is putting in another £3bn

Question

Can someone explain that to me? They're repaying the taxpayer's money, but the Government are putting in another £3billion...???? Huh?

http://www.thisislondon.co.uk/news/article-23526309-details/Taxpayer to pump ANOTHER 3bn into Northern Rock as profits slump by 580m/article.do

Chancellor Alistair Darling said the lender was facing a 'very difficult time' in common with other banks around the world but was repaying its debt.

'Northern Rock needs more share capital. It doesn't have shareholders now that... it's owned by the government, so it's got to come to us, so what we've said is that we will put in up to £3billion,' he told the BBC.

'We've got to get state aid approval for that so we can't give a precise figure, but up to £3billion may be necessary.'

Answer 1

If you try to work it out mathematically you will find a massive deficit but what we are dealing with at this time is NEW LABOUR CALCULATIONS. You see, you are not supposed to understand. It is a treasury secret for a start and only Gordon Brown understands it. I do hope he comes back off holiday soon. Northern Rock must be really missing his expertise.

Answer 2

people are moaning about money being invested in northern rock but what about the amount that is being wasted on the 2012 olympic games that will never be re-payed

Answer 3

Did you ever believe that the taxpayer was going to get his money back. Surely you have realised that once the government gets it's grubby little hands on anything it won't let go because they can employ at least another hundred Civil servants in no jobs  

Answer 4

Northern Rock have already repaid £7.5 billion to the Government according to the Financial Times.

Answer 5

It seems to me the the government has handed over taxpayers money for IOU's wich will eventually prove worthless ie shares in an insolvent bank

Answer 6

I think it is beginning to dawn on people that Brown in fact couldn't run a corner shop. An examination of some of his successes reveals the pension fiasco,selling half our gold reserves at bargain basement prices  etc,etc.The government didn't provide money to Northern Rock the taxpayer did. This government only cared about protecting Labour Party seats in the North East of England. Don't worry this lot have fiddled the books since 1997 and will carry on doing so.

Answer 7

Since nationalisation NR have reduced its debt to the treasury from £26.9bn to £17.5bn, a rate of repayment well ahead of expectations. With so much is being payed back to the govt. its hardly suprising that the bank lacks a warchest to absorb such changes in market activity...

Answer 8

Now you see it !

Answer 9

Does anyone really believe that the taxpayers who are propping up this company will see their money back? I don't think so.

Answer 10

Another question is:

HOW MANY SCHOOLS DOES THREE BILLION BUY?

Surely WE pay our taxes so the Government can INVEST the money in schools, hospitals, infrastructure, bullet proof vests for troops, etc. Instead it seems that Gordon Brown's pocket puppet Darling, is using OUR money to pay back the money that WE loaned Northern Crock? Worse, he does it by FAILING to secure the 'loan' by issuing it as equity that is basically worthless!

Darling said that Banking was going through tough times. Well the tax payer is getting it far worse - and no thanks to the SPEND-THRIFT idiot at the top.