How has the Northern Rock gone so badly wrong?
The announcement that Northern Rock is to cease payment of interest, where possible, on a number of the company's bonds and the confirmation that the UK government will be injecting a further £3 billion into the operation, which will be reorganised, has caused fury up and down the country. When the business was taken over, using taxpayers money, the government promised a return on investment in the short to medium term and while initially the business was paying back part of the loan on an ongoing basis, over recent months the government has been forced to inject more money into the operation.
Such is the dire situation in some areas of the Northern Rock that the government is currently putting together a plan to hive off the current mortgage book, which has significant debt issues, from the branches, deposits and future mortgage business. It is also widely known within the city that the UK government is looking to sell off Northern Rock as soon as possible with the likelihood that UK taxpayers will receive only a fraction of the money they have invested so far.
If the situation with Northern Rock can go so wrong, can we expect Lloyds bank and Royal Bank of Scotland, both companies in which UK taxpayers have a significant stake, to request further funding from the taxpayer?
Share this..
Related stories
Tax scams on the increase
HM Revenue and Customs has revealed that 83,000 scam e-mails were sent to UK taxpayers, supposedly from the tax authorities, in September 2009 alone. On one day it was reported that 10,000 of these "phishing" e-mail were received which are nothing more than scams to get your personal details. Unfortunately, while 83,000 attempted scams have been reported, many more which have either been ignored o...
Read MoreIs the forthcoming pension crisis going to affect you?
If you are currently under retirement age then the chances are that the changes in the UK state pension in the future will affect you. As we covered in one of our earlier post, the Pensions Regulator has suggested that UK workers needed to continue employment into their 70s in order for the government to avoid a massive pensions funding crisis.
This is a situation which will affect...
How long will it take to pay back government borrowing?
The subject of excessive government borrowing to try and refloat the UK economy is never far from the headlines with literally hundreds of billions of pounds spent over the last few months. While nobody really ever talks about how this money could be repaid there is no doubt that it will take literally years and years to replenish the government budget. So how exactly can a future government repay...
Read MoreAnnual retirement costs reach over £11,000
24/02/2015 The minimum costs for pensioners to eat, stay warm and have a roof over their heads has risen 8% in the last 12 months to £11,200 per year. Research of government figures on household expenditure from Key Retirement has shown that the annual cost of being a pensioner has risen to £215 a week. These costs come from spending on the basics including food, clothes, travel and heatin...
Read MoreNAPF ask 101 questions about new pension regulations
07/11/2014 The National Association of Pension Funds (NAPF) has called the new pension regulations into disrepute by releasing 101 questions about “unresolved issues” the pension reforms have posed. The questions are based around the new pension regulations, which will be implemented in April and aim to increase savers flexibility. NAPF believe the Government has not given enough inform...
Read More