Northern Rock

[Jrc]

Originally Posted by mxm

erh not quiet true... and no not it is not harsh... hence an extraction from a letter sent to someone in MARCH 2007 regarding the worry of Rocks borrowing...

"Dear Sirs, Thank you for your recent comments regarding your bond and share holding issues within PAB and SAB, as a major shareholder we can confirm a very short answer with a rough percent guide to your question. Q: How much of the sub-prime lending that was issued via various UK "mortgage brokers" has been lent against false or fraudulant information given via forms filled in? A: Around 22%"


So based on that rather small figure... IF and WHEN Northern Rock goes pop, similar to "nobody has done anything wrong at Enron" the amount of sub-prime lending on the books to people that SHOULD NOT have got the packaging / lending for mickey mouse mortages EXCEEDS the amount left in the pot... hence the share price diving to £0.5832 UK pence...

Virgin, IF accepted by major shareholders we like him! will in fact loose all his $400 mil so bit of a risk... he is a bit of info to take in

http://newsvote.bbc.co.uk/1/hi/business/7010415.stm

http://newsvote.bbc.co.uk/1/hi/business/7113134.stm

http://newsvote.bbc.co.uk/1/hi/business/7030723.stm

Even after reading your post I still fail to see how see the similarities between the collapse Enron and the situation at Northern Rock.

[GreyWing]

Originally Posted by DB

Cool.... is it hard to learn?

I am ok .. just got up before...

It's a bit like going from windows to Mac's very strange.

You have to plan things out a lot better before you build anything. Seem to be getting there now. Hopefully all be worth it.

Graeme

[devolution]

http://news.bbc.co.uk/1/hi/business/7127534.stm

UK mortgage lenders have to prepare for the "very real prospect" of the global credit crunch getting much worse.

The Financial Services Authority (FSA), said a tougher global financial situation could affect the whole UK mortgage market, boosting defaults.
Access to cash could become more difficult - a problem that caused the run on Northern Rock earlier this year. Lenders needed contingency plans to guard against the "worst outcomes", the City watchdog said.

[landlord]

Just out of interest is anyone taking a punt on the buy to let mortgage provider Paragon Mortgages?

Book value is good but unlikely to remain as a going concern....with this news it may not last much past feb

Lee

[devolution]

http://www.guardian.co.uk/business/2...k.creditcrunch

2nd bidder has pulled out - this means Virgin or bust...