Not everyone's darling -

[observer]

Alister, that is: seems around 50% of voters want him sacked, arising from recent fiscal incompetancies.

[busby]

Does that mean 50% of voters are happy with him :confused:

[observer]

Nope, presume they didn't care either way - bit like all those who don't bother voting anymore.

[Evil Sid]

nah the other 50% want him hung drawn and quartered

[observer]

Well the Tories are slagging him off over the Northern Rock debacle; presumably they would have saved it with tax payers money, then give it gift wrapped to the shareholders? Yes, NuLab have dithered, dreading the use of the "N" word; but other than allowing it to go bankrupt at the very beginning; Nationalisation was the only way to protect the ?billions now at risk from the tax-payer.

[Paul Kennedy]

I think in the case of NR, assuming that its mortgage book value and other assets actually exceeded its debts then it wouldn't be bankrupt. Its problem was one of cashflow.....savers withdrawing and loans being called in or not renewed and existing sources of funding "drying up", that being the case it could have been put into administration. NR highlights the problem with the regulatory system, a system that until the late 90s was a Bank of England role, then it was changed to BoE, FSA and the Treasury and hence nobody in control and allowing NR to carry on regardless and unchecked.

 

Unlike businesses that I am used to, a bank has great longevity in terms of its business, i.e. borrowers with 25 year mortgages, so in a liquidation of assets what value is put on those loans when you try and sell them on to realise the businesses assets. Maybe the Treasury will manage to reorganise the business, recoup taxpayers money and then sell the business as a going concern or float it on the stock market. Interesting times.