Recent Event Highlights: Banks' dependence on ECB shrinks - Irish Independent, Federal debt hits highest level since the end of World War II - Superior Gold Group (blog), Second Bank Bailout Could Break Britain - BusinessWeek, Half of Brits don't trust their banks - PRLog.Org (press release), Senior executive of FSA to step down - Reuters UK, Don't expect so much from the board, says Northern Rock chairman - Management Today, and 528 more...
Created by dipity on Feb 12, 2009
Last updated: 10/28/10 at 02:59 PM
Banks' dependence on ECB shrinksIrish IndependentThe problems of Northern Rock and Lehman Brothers were caused -- in part -- by a dependence on wholesale funding and too much leverage. ...and more »
http://news.google.com/news/url?sa=t&fd=R&fp=6ce6a7c580f10795&url=http://www.independent.ie/business/banks-dependence-on-ecb-shrinks-2241243.html
Federal debt hits highest level since the end of World War IISuperior Gold Group (blog)During the 2007-2008 financial crisis, Northern Rock bank in the UK actually experienced an old-fashioned bank run as depositors tried desperately to get ...and more »
http://news.google.com/news/url?sa=t&fd=R&fp=aebab4f4aaf76ad9&url=http://www.gold101.com/goldnews/19867525/Federal-debt-hits-highest-level-since-the-end-of-World-War-II
Second Bank Bailout Could Break BritainBusinessWeek... the Royal Bank of Scotland (RBS) and Lloyds Banking Group (LYG), as well as fully nationalising Northern Rock, in an attempt to stave off collapse. ...and more »
http://news.google.com/news/url?sa=t&fd=R&fp=e804f8b21d535053&url=http://www.businessweek.com/globalbiz/content/jun2010/gb20100630_653084.htm
Half of Brits don't trust their banksPRLog.Org (press release)... people to learn more about people's potentially changing attitudes towards their banks, 2 years after the likes of the Northern Rock and RBS bail out. ...and more »
http://news.google.com/news/url?sa=t&fd=R&fp=c79091a116d97e8d&url=http://www.prlog.org/10768094-half-of-brits-dont-trust-their-banks.html
The GuardianSenior executive of FSA to step downReuters UKJon Pain, who joined the FSA in 2008 after the shake-out that followed the debacle at lender Northern Rock, will leave the FSA when his division is split up ...UK Accountants Should Pay More Attention to Bank Bias, Regulators SayBloombergRegime changeMortgage Strategyall 154 news articles »
http://news.google.com/news/url?sa=t&fd=R&fp=9c0e2ed07dd8b8cd&url=http://uk.reuters.com/article/idUKTRE65R5LJ20100628
Don't expect so much from the board, says Northern Rock chairmanManagement TodayTwo oft-cited examples are RBS and Northern Rock, where CEOs Fred 'the Shred' Goodwin and Adam Applegarth were allowed to take such disastrous risks with ...Ron Sandler Urges Reduced Expectations Of Corporate GovernanceFresh Business Thinkingall 2 news articles »
http://news.google.com/news/url?sa=t&fd=R&fp=17e6c8d0bcdf4b26&url=http://www.managementtoday.co.uk/channel/Finance/news/1012879/dont-expect-so-board-says-northern-rock-chairman/
Bobsguide (press release)Financial services growth 'slower'The Press AssociationGrowth in the UK financial services industry has been slower than expected despite the sector posting its strongest performance since Northern Rock's ...Financial services growth “modest”ifaonline.co.ukGood news, but finance sector is still fragileScotsmanFinancial Services Sector Growth DisappointsSky Newsnebusiness.co.uk -Finance Markets (blog)all 68 news articles »
http://news.google.com/news/url?sa=t&fd=R&fp=68de6361f43c56d2&url=http://www.google.com/hostednews/ukpress/article/ALeqM5hoX8400A5xJZQpEA9QYQSfEonsMg
Sean O'Grady: If Greece was Northern Rock, Spain is Lehman BrothersIndependentIt is the sort of difference, to draw an uncomfortable analogy, between Northern Rock and Lehman Brothers. The first was serious indeed, and a precursor of ...and more »
http://news.google.com/news/url?sa=t&fd=R&fp=56b57c7e7a3f9ab4&url=http://www.independent.co.uk/opinion/commentators/sean-ogrady-if-greece-was-northern-rock-spain-is-lehman-brothers-2002675.html
Northern Rock shareholders take case to EuropeReutersLONDON, June 16 (Reuters) - Shareholders in British bank Northern Rock, nationalised by the government in 2008, said they would take their campaign for ...Northern Rock shareholders take fight to EuropeThis is LondonNorthern Rock row going to BrusselsSunderland EchoNorthern Rock shareholders take compensation battle to European CourtChronicleLiveall 8 news articles »
http://news.google.com/news/url?sa=t&fd=R&fp=bd6dbcafa089b791&url=http://www.reuters.com/article/idUSLDE65F0LE20100616
Daily MailNorthern Rock Talks To Unite On Restructuring "Good Bank"Wall Street JournalLONDON (Dow Jones)--Northern Rock PLC on Tuesday said it was in talks with employees and their union ...Northern Rock Plans to Cut 650 UK Jobs by Year EndBusinessWeekNorthern Rock to cut 650 workersBBC NewsNorthern Rock to cut 650 jobsThe GuardianAFP -Times Online -The Press Associationall 215 news articles »
http://news.google.com/news/url?sa=t&fd=R&fp=dc36d69ed1826b01&url=http://online.wsj.com/article/BT-CO-20100608-707731.html?mod%3DWSJ_latestheadlines
Excerpt
...payments to people who had taken out longer-term products, such as fixed rate bonds. Gary Hoffman, chief executive of Northern Rock, said: "The board considers the closure of our Guernsey operation to be a necessary step as we continue to prepare the company...
Source Info
Arbroath Herald
http://www.arbroathherald.co.uk/latest-north-east-news/Northern-Rock-to-close-offshore.6335951.jp
Excerpt
...the Government. The other non-executives, Kent Atkinson, Bob Davies and Philip Remnant, come from the existing Northern Rock. Andy Tate, director of debt management at Northern Rock, will join the board as chief operating officer. The chief executive of both...
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The Independent
http://www.independent.co.uk/news/business/news/pym-to-be-chair-of-northern-rock-bad-bank-1841942.html
Excerpt
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Nationalised lender moves step closer to break-up on 1 January with announcement of management teams for its 'good' and 'bad' operations
Northern Rock will be split into two operations on New Year's
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Guardian Unlimited
http://www.guardian.co.uk/business/2009/dec/15/northern-rock-split-management-teams
Excerpt
... One new non-executive director, Sue Langley, a Lloyds of London insurance executive, will join the NRAM board. Existing Northern Rock non-execs will make up the rest of the places on the boards of the two successor bodies. Mr Pym will be paid £250,000...
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Times Online
http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6957288.ece
Excerpt
NORTHERN Rock’s shareholders have been told they are unlikely to get compensation as it was confirmed the institution’s split into a “good” bank and “bad” bank will take place on New Year’s Day.
The two new companies will be Northern Rock plc, a
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The Northern Echo
http://www.thenorthernecho.co.uk/business/4785115.No_compensation_as_bank_splits_into__good__and__bad_/?ref=rss
Excerpt
Former Northern Rock shareholders are unlikely to receive a penny in
compensation following the nationalisation of the bank, a report costing
£4.5 million warned today.
The provisional view of independent valuer Andrew Caldwell, of BDO, is that
there
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The Independent
http://www.independent.co.uk/news/business/news/no-compensation-for-northern-rock-shareholders-1836478.html
Excerpt
...to be slashed in value by 15% in any sale. "An administrator would have to decide how to raise value from the remainder of Northern Rock's portfolio of assets, that is whether to sell all assets immediately, or sell part and run off the rest," Mr Caldwell...
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The Independent
http://www.independent.co.uk/news/business/news/no-compensation-for-northern-rock-shareholders-1836478.html
Excerpt
Budenberg was confirmed as John Kingman's replacement at the helm of UK Financial Investments (UKFI), just hours after the EC announced that Northern Rock will be divided into a "good bank" and a "bad bank". UKFI manages the government's stakes in
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The Scotsman
http://thescotsman.scotsman.com/business/Robin-Budenberg-to-oversee-Northern.5776136.jp
Excerpt
Northern Rock secured its return as a high street lender with the green light from the European commission to split off its toxic assets into a bad bank. Photograph AFP
Northern Rock secured its return as a major high-street lender today with an £8bn
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Guardian Unlimited
http://www.guardian.co.uk/business/2009/oct/28/northern-rock-good-bank-bad-bank
Excerpt
...lender with the green light from the European commission to split off its toxic assets into a bad bank. Photograph AFP Northern Rock secured its return as a major high-street lender today with an £8bn government loan and the green light from the European commission...
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Guardian Unlimited
http://www.guardian.co.uk/business/2009/oct/28/northern-rock-good-bank-bad-bank
Excerpt
Gary Hoffman was speaking after Brussels cleared the troubled mortgage
specialist’s plans to split into a “good bank” and a “bad bank”, in a move
that will see the state increase its loan by £8bn to £23bn. The Treasury is
providing another £4bn of
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The Telegraph
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6454022/European-Commision-clears-Northern-Rock-break-up.html
Excerpt
Government hopes of selling Northern Rock before the general election looked doomed today amid signs potential bidders will wait until after polling day.
The European Commission approved plans to split the nationalised lender into a good bank and a bad
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This Is London
http://rss.thisislondon.co.uk/c/365/f/11085/s/6d08b84/l/0L0Sthisislondon0O0Cstandard0Ebusiness0Carticle0E237618830Enorthern0Erock0Esale0Edelayed0Eas0Ebuyers0Ewait0Efor0Egeneral0Eelection0Bdo/story01.htm
Excerpt
The body representing Britain's mutually-owned lenders has complained to Europe's anti-trust regulator that a planned restructuring of state-owned bank Northern Rock would distort competition in the mortgage market.
The Building Societies Association
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The Herald (UK)
http://www.theherald.co.uk/business/news/display.var.2526034.0.mutuals_object_to_northern_rock_revamp.php
Excerpt
...Ainsley Thomson and Mark Brown Please see Corrections & Amplifications item below. LONDON -- Nationalized U.K. bank Northern Rock PLC said Tuesday it was stopping payment of coupons on some of its subordinated debt, handing bond holders a big loss and further...
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Wall Street Journal
http://online.wsj.com/article/SB125058067452939477.html?mod=WSJ_topics_obama
Excerpt
The loss-making lender, nationalised in early 2008 after it became the first major British victim of the credit crisis, said it had decided to defer payment of coupons until further notice on almost all of its subordinated debt.
"The company will
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Irish Times
http://rss.feedsportal.com/c/851/f/10838/s/5bad531/l/0L0Sirishtimes0N0Cnewspaper0Cbreaking0C20A0A90C0A8180Cbreaking340Bhtm/story01.htm
Excerpt
...a submission to the European Commission which is scrutinising the plans. The BSA says the government's guarantee to the Northern Rock's savers, which came into place when it faced a run on its funds in 2007, should also come to an end. In its submission...
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Pakistan News.net
http://feeds.pakistannews.net/?rid=27080140&cat=3a8a80d6f705f8cc
Excerpt
Around 218,400 households with Northern Rock mortgages are in negative equity – or 39 per cent of the bank's home borrowers. That figure is up from 33 per cent at the end of last year.
Northern Rock's sub-prime crisis was laid bare as it emerged that 22
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Edinburgh Daily News
http://news.scotsman.com/uk/Four-in-ten-Northern-Rock.5523095.jp
Excerpt
The Government has already made £1.52bn in 'interest and fees' on its emergency funding of Northern Rock
Photo: GETTY
Standard & Poor's, the credit rating agency, isn't often the bearer of
good news. For the taxpayer, though, S&P's decision on
Source Info
The Telegraph
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5973176/UK-government-plans-a-great-escape-from-Northern-Rock.html
Excerpt
Today Northern Rock, the first of a series of tax payer bailed out bankrupt banks announced a further loss of £750 million to be added to the tab picked up by the tax payer that is now approaching in total £1.5 trillion across the banking sector and
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The Market Oracle
http://www.marketoracle.co.uk/Article12516.html
Excerpt
...would not accept deposits. The plan is expected to require no more than 3 billion pounds in additional government support, Northern Rock said. "We anticipate receiving state aid approval in the autumn and the legal and capital restructuring of the company...
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KansasCity.com
http://www.kansascity.com/438/story/1363075.html
Excerpt
This is Money
4 August 2009
Simon Lambert, Assistant Editor, This is Money, replies: Northern Rock became infamous for its 125% Together mortgage and was at the forefront of the 100%-plus mortgage movement.
If Northern Rock's mortgage borrowers are
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This Is Money
http://www.thisismoney.co.uk/mortgages-and-homes/ask-an-expert/article.html?in_article_id=489201&in_page_id=53946&ito=1565
Excerpt
Ed Monk, This is Money
4 August 2009, 9:07am
Northern Rock suffered an increase in the number of bad debts on it's books and saw the net savings deposits it holds fall.
Northern Rock made a loss of £724m for the first half of the year as the
Source Info
This Is Money
http://www.thisismoney.co.uk/news/article.html?in_article_id=489196&in_page_id=53946&ito=1565
Excerpt
SRM Global, the hedge fund that was Northern Rock's largest shareholder, 'will be seeking permission to appeal to the House of Lords'
The Appeal Court dismissed the case by private shareholders and two hedge
funds for a judicial review of the
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The Telegraph
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5926582/Northern-Rock-shareholders-to-fight-appeal-decision.html
Excerpt
The FSA is allowing the bank to continue writing new mortgages and taking deposits.
Despite breaching every rule on capital requirements in the book, the
Financial Services Authority is allowing the bank to continue writing new
mortgages and taking
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The Telegraph
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5710699/Northern-Rock-losses-grow-by-1bn.html
Excerpt
TESCO may launch a bid for Northern Rock as the Government attempts to sell off the nationalised lender before the General Election, it was reported today.
The supermarket chain has shown "provisional" interest in buying the bank which was
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The Northern Echo
Related Topics
http://www.thenorthernecho.co.uk/news/4467485.Tesco__could_bid_for_Northern_Rock_/?ref=rss
Excerpt
...has retail, commercial and investment banking interests worldwide. Officials believe that any formal sales documents for Northern Rock cannot be drawn up until the Commission gives its ruling on whether the plan to split Northern Rock into a “good” and...
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Times Online
http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6613502.ece
Excerpt
...Northern Rock to return to long-term viability while avoiding "undue distortions of competition". Before the new plan for Northern Rock was proposed, the lender had already agreed to a number of measures designed to help it avoid abusing its government- supported...
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Pakistan News.net
http://feeds.pakistannews.net/?rid=25565248&cat=3a8a80d6f705f8cc
Excerpt
Almost one in three Northern Rock customers in negative equity
They argued on Wednesday that taxpayer support for the now-nationalised bank
had merely "safeguarded" a solvent business and did not justify
Government ownership.
The failed mortgage
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The Telegraph
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5496438/Northern-Rock-investors-start-legal-action-for-payout.html
Excerpt
...supported the Government's position, but SRM is arguing that "the court failed to appreciate that the underlying value in Northern Rock was safeguarded by the provision of financial support but it was not created or enhanced by such provision". Lord Pannick...
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The Telegraph
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5496438/Northern-Rock-investors-start-legal-action-for-payout.html
Excerpt
Two years ago people queued to take their money out of Northern Rock
The Treasury is investigating the prospect of selling state-owned bank Northern Rock as soon as the autumn, according to a report in the Times.
Finding a City buyer or a stock market
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BBC News
http://news.bbc.co.uk/go/rss/-/1/hi/business/8092538.stm
Excerpt
The Treasury has told its investment banking advisers to examine the
feasibility of selling Northern Rock, the nationalised lender, back to the
City in the autumn, The Times has learnt.
A number of senior banking sources said that the Treasury was
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Times Online
http://feeds.timesonline.co.uk/c/32313/f/440135/s/49eca45/l/0L0Stimesonline0O0Ctol0Cbusiness0Cindustry0Isectors0Cbanking0Iand0Ifinance0Carticle64667460Bece0Tcid0FOTC0ERSS0Gattr0F1185799/story01.htm
Excerpt
...would be wound down," the Commission said in a statement. "The Commission has to examine whether the changes will enable Northern Rock to return to long-term viability while avoiding undue distortions of competition," it said. Northern Rock, now nationalised,...
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BBC News
http://news.bbc.co.uk/go/rss/-/1/hi/business/8037711.stm
Excerpt
...treatment of arrears as well as the now-abandoned strategy of rapidly shrinking the balance sheet – a policy that has left Northern Rock with a high proportion of customers more likely to default. The bank recently revealed that one in three customers are...
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The Telegraph
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5209107/Northern-Rock-problem-loans-at-double-industry-average.html
Excerpt
The Treasury’s most senior civil servant has reignited the blame game between
the government department and the Bank of England over Britain’s collapsing
banks.
Sir Nick Macpherson, the Permanent Secretary to the Treasury, admitted
yesterday that the
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Times Online
http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6005675.ece
Excerpt
Gordon Brown came under fire today when it emerged that he failed to act on a warning about a gaping hole in emergency planning to cope with a banking crisis.
A bombshell official report revealed that the Treasury realised in 2004 that it did not have
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Daily Mail - UK
Related Topics
http://www.dailymail.co.uk/news/article-1163350/Brown-ignored-warning-bank-cash-crisis-FIVE-YEARS-Northern-Rock-failed.html?ITO=1490
Excerpt
...Treasury came under heavy fire yesterday for allowing Northern Rock to continue to extend 125 per cent mortgages long after the bank was forced to seek Government help. A National Audit Office report criticised Northern Rock for continuing the use of controversial mortgages,...
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Times Online
http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5941790.ece
Excerpt
...Rock's chief financial officer cost the taxpayer £173,000 in expenses last year travelling between her home in Switzerland and the UK. Zurich-based Ann Godbehere, 53, was parachuted into the failed bank on a £900,000-a-year salary but decided to commute to...
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Daily Mail - UK
http://www.dailymail.co.uk/news/article-1158734/Frequent-flyer-Northern-Rock-director-racked-173-000-expenses-COMMUTING-home-Switzerland.html?ITO=1490
Excerpt
Northern Rock's careless dealings have led to a massive number of homeowners in arrears and fearing eviction.
The bank's now infamous loans, which offered 125 per cent of the value of a property, have helped push up by 395 per cent the numbers of those
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Mirror.co.uk
http://www.mirror.co.uk/news/top-stories/2009/03/04/reckless-lending-means-northern-rock-arrears-soar-395-per-cent-115875-21169928/
Excerpt
The number of Northern Rock’s borrowers more than three months in arrears on
mortgage payments has risen fivefold to more than 17,000, the lender’s
annual results revealed.
Confirming a £1.4 billion loss for 2008, the state-rescued bank said
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Times Online
http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5840801.ece
Excerpt
Silly money: Ann Godbehere was paid £959,000 in total last year
THE troubleshooter brought in by the Government to run Northern Rock cost the taxpayer £173,000 in expenses last year as she travelled between her home in Switzerland and the
Source Info
This Is London
http://rss.thisislondon.co.uk/c/365/f/11085/s/35a36aa/l/0L0Sthisislondon0O0Cstandard0Carticle0E236568880Edetails0CNorthern0KRock0Ktroubleshooter0Kbilled0Ktaxpayer0Kfor0K1730J2C0A0A0A0Kexpenses0Carticle0Bdo/story01.htm
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