The 'other assets ' category in the Bank of England's weekly accounts indicate that up to now Northern Rock has borrowed £16 billion (sixteen billion pounds sterling) from the lender of last resort. The lender of last resort is you, the UK taxpayer.
And do you own, for £16 billion , this grotty north eastern England ex- building society that seems to have the horn of plenty to its mouth? Of course you don't. Has anybody been dismissed? Of course they haven't. Is any part of the Labour regime and its multi-benefitted supporters going to blow the whistle on this off-balance sheet funding of an economically collapsed area of England by grotesquely risky (not now of course, now its the taxpayer, but not counted in the books) means, to an even more grotesque clientele? Anyone want to buy a wholly home-grown mortgage book together with some assets like Northern Rock has to offer?
The Bank of England has paid £ 16 billion up front and still not succeeded, so that's the order of offer required (well, considerably more to make its clockwork keep running), or it could be noticed that it's worthless, unless there is some not immediately visible value.
Update
"The government should have made Mr Ridley's departure a condition of its loan, rather than waiting for him to go. Furthermore there are other directors, including Derek Wanless, who are equally culpable. All of the senior management should have been cleared out on day one.", Vincent Cable MP, Liberal Democrat acting leader and treasury spokesman stated.
Northern Rock, who the Treasury Select Committee accused of destroying "the good name of British banking", “now believe that in the interests of all stakeholders in the company, the time is right to accept his [Ridley’s] resignation as a director and chairman of the company.” He is to be replaced by Bryan Sanderson, a Labour party advisor on competitiveness during the 1990s, who stepped down from Standard Chartered late in 2006 with threequarters of a million pounds.
The Board of Northern Rock, it seems, is “delighted to welcome Bryan Sanderson to the company. He has a wealth of experience in business, banking and working with government that will prove invaluable to Northern Rock when considering future strategic options.”
Northern Rock think it "premature" to discuss how much Sanderson will be paid.
So from the lowliest clerk to the highest members of the board, Northern Rock is still out there, posturing and choosing, lending your money and making appointments at unspecified payment levels to Labour advisors .
You could buy the whole of north east England and a packet of Woodbines and still have change out of £16 billion.
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Chairman steps down
http://news.bbc.co.uk/1/hi/business/7052828.stm
(no doubt trousering huge pay off for his, for his, for something).
Meanwhile, they are still pushing sub-prime mortgages regardless. Well, why not, if we are to prop them up regardless?
The world turned upside down.
Dismissed isn't stepping down Elby. What happened to 'sacked' 'asked to leave' even?
This is an utter disgrace Hats, and you've gone for the throat again here!
To have the NuLabyrinthine tentacles entwined in a building society is one of the worst examples of commercial failures being fed by commercial incompetence just sticks in my craw.
I don't know how you get all this, but your comments really open my (somewhat jaded...) eyes!
S, It's all published in the business sections of the newspapers. The Times actually speaks of 'the geordie mafia' on this one. (And a point of view that comes from chit chat at various occasions, for instance a passing- through trade union lawyer, not English, remarked how astonished he was, during a 'fraternal visit', to find how much money the NUM has considering how few miners there are in the UK, (about 3000 I think).
It's called the 'sotto-governo' in Italy and refers to the grey governance, the clientele network that shares the spoils; all the appointments that have gone to the governing parties - managers of enterprises, banks, quangos, all the appointments to highly paid posts in international organisations, lucrative consultancies by the thousand, leases, licences, concessions, military contracts, infrastructure contracts - the lot really.
Elby, Mr Ridley is reported to have refused any pay off; he stayed on at the Northern Rock board's request to face the various kinds of music having placed his resignation in their hands. A Carrington among the rest of them.
You are so right HG...well done indeed for having a non retractible jaw on the subject.
What this looks like N, is the Labour regime spread out, on its home ground, in all its networked, private agenda, recruiting and sustaining its base, using regime offered guarantees that there will be no retribution for financial and economic choices that bear no relation to markets. According to press reports:
'..they only took out £1.5bn of 'liquidity insurance' to cover a £90bn mortgage book, which proved to be 'plainly insufficient' when the debt markets dried up.'
Unlike the former Labour practice of using local authorities to further their own interests, presumably why so much centralizing of expenditures took place in the eighties and nineties, this kind of institutional, non-democratic-system political agenda furtherance is both insidious in its effect on our democracy and, in its covertness, unreponsive to normal political and economic disciplines.
Despite the £16 billion, the reckless conduct, the damage to the UK financial institutions and reputation abroad, the enormous threat to financial stability still engendered by this set up, the regime will not allow any part of what is essentially its own structure to pay the price. A regime nomenklatura apparatchick is nominated to take over instead.
This is going on in the north east; what other institutional vehicles are performing the same functions elsewhere in Labour regime heartlands? It seems unlikely this is the only one.
Good stuff HG, but what puzzles me is how this is being done by an ostensibly 'Labour' party yet they all seem to be circulating in the upper stratosphere nowhere near the 'working class'. How do they get support esp after GB had Thatch to tea the other day?
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