 Investments |
| Search News |
|
|
| Find an IFA |
|
|
| Browse |
|
| UK Spotlight |
The government is in a desperate race to try and refloat the UK economy before we see a major collapse in the UK employment market. A recent flurry of announcements from various recruitment...
→
Read More
|
|
| Disclaimer |
| Financialadvice.co.uk adheres to the Financial
Services and Markets Act 2000. This site contains only factual and
readily available public information. |
|
|
| |
|
|
|
|
Monday 25th August 2008
Those close to the Northern Rock situation have been very vocal over the last couple of weeks with regards to a statement made by Gordon Brown on the 18th February, soon after the troubled Northern Rock bank was nationalised. In his press conference in the aftermath of the move he insisted that the move was not a bad one and could see tax payer actually make a profit as and when the bank was sold. But was he telling us the whole truth?
Reports in the press over the last few days seem to suggest that Goldman Sachs, the financial giant advising the government on the case, had warned Mr Brown that a best case scenario was a loss of £450 million in the future although a probable hit of £1.28 billion was the ‘base case scenario’. However, more alarmingly it seems as though the £1.28 billion projected loss did not take into account a further fall in the property market, something which we are experiencing now. So where does the profit projection come from?
Mr Brown is sure to come under more and more pressure as the impressive start to repayment of the tax payer loan by the bank seems to be evaporating. Northern Rock has reduced its mortgage book but there are grave concerns that it is left with the more risky rump which nobody wants to take on. If so, the loss of £450 million in the future could turn out to be chicken feed! |
→ Full Investments News Archive
→ Return to Homepage
|
|
|
|
| Other top stories in this section:
|
|
|
|
