Northern Rock deal Great value for UK Taxpayers??

Question

Northern Rock deal Great value for UK Taxpayers?

great deal for taxpayers...........................

best way to protect our taxes..................

governemtn 'doing the right thing'...............

WTF??? I DONT WANT MY TAXPAYERS MONEY SUBSIDISING THIS BUSINESS THAT IS DESTINED TO FAIL AFTER HAPPILY LENDING 125% MORTAGES AT 7 TIMES SALARY!

whats all this about having the best deal for taxpayers? surely the best deal is to let the business GO UNDER

Answer 1

I have to agree, I fail to see what I will get from this.

Answer 2

It was done to save the Government. Did you see "dispatches" C4 Monday 18th Feb? It explained how Brown was the main culprit, and of course, greedy Banks, particularly the 'ROCK', which had a hopelessly flawed business model. Everyone seemed to know what was coming, except Brown and the regulatory bodies. Even the bankers new what was coming.

The Rock, ideally should have been taken over by Lloyd's, (Brown blocked it) failing that, it should have been allowed to fail. Saving it, was a political decision. Who on earth said it was a great deal for the taxpayer? That is total cr-p.

Answer 3

Due to the reckless disregard of the board of Northern Rock, it is bankrupt. It lent out more money than it had, or could borrow.

How nationalising it is a good deal for us, the taxpayer, I fail to see.

It is a small regional bank in a Labour stronghold that has gone bust. To protect its votes, Labour has taken control of it with taxpayers money. It will be a rock around Gordon Brown's neck for years to come and beyond.

When Rolls Royce went bankrupt in the 70s, it was nationalised and took 16 years to return to the private sector. RR was a much better brand than NR will ever be.

This nationalising could be in breach of EU rules, shareholders are threatening to sue and the competition watchdog is getting involved because NR is seen to have an unfair advantage.

The taxpayer has been shafted by Labour. It stinks.

Answer 4

Northern Rock will want to decrease their exposure by encouraging people to repay their mortgages.  They do this by increasing rates making people remortgage elsewhere at a lower rate.

However if Northern Rock increase rates the rest of the mortage market will follow suit so we will all end up paying more for our mortgages.

The Government have screwed us completely.

Answer 5

Well next time it will be a run on the banks.  I hope you enjoy it.

Answer 6

yes let them go under and write my mortgage off happy days lol

Answer 7

Nationalisation is clearly a better deal for tax payers than handing the company to Virgin and taking the risk of all it all going wrong with hardly any upside if it goes right. Now they have more or less the same downside and all the upside.

Just maybe the tax payer will make a small fortune. After all this was 1 billion pound plus company not long ago and the fall is based on speculation about the future rather than actual default. If the housing market does not go down too much (and given the government build no houses but many are needed so it probably will not) then the government is set to make money.

Answer 8

It's a rotten deal and the Government, Bank of England and FSA were jointly incompetent in the handling of this affair. Tonight's Channel 4 Dispatches documentary showed just how the debacle could have been avoided. I can't see that Northern Rock will ever be a commercial success. Taxpayers' money would have been better spent compensating people who lost their pensions when their schemes went bust.