Northern Rock, a deal done

[Mega]

So it seems
Share holders get zip or near zip, Goverment gets £11 Billion now plus return of the rest of the cash over the next few years.

Mega

[metalman]

Re: Northern Rock, a deal done

So it seems
Share holders get zip or near zip, Goverment gets £11 Billion now plus return of the rest of the cash over the next few years.

Mega

and you get your deposits, right?

[touchring]

Re: Northern Rock, a deal done

Can't see how virgin thinks there's value left, what happens if the uk gets the subprime problems also? is there something i missed out? :confused:

[rj1]

Re: Northern Rock, a deal done

The second largest shareholder has publicly said they oppose the takeover, thinking it too low. http://www.bbc.co.uk/blogs/thereport...s_big_bet.html

[GRG55]

Re: Northern Rock, a deal done

The second largest shareholder has publicly said they oppose the takeover, thinking it too low. http://www.bbc.co.uk/blogs/thereport...s_big_bet.html

Now that's rich! The only reason there's still ANY "shareholder" value left is because New Labour decided to practice some Old Labour (to purge the ghost of Tony Blair?) and stick it to the UK taxpayer. If Richards doesn't like the deal, he should top the bid. This really is socialism for the wealthy. :p

[Spartacus]

Re: Northern Rock, a deal done

Now that's rich! The only reason there's still ANY "shareholder" value left is because New Labour decided to practice some Old Labour (to purge the ghost of Tony Blair?) and stick it to the UK taxpayer. If Richards doesn't like the deal, he should top the bid. This really is socialism for the wealthy. :p

no worries, mate - it's a fair cop - I don't see the socialism for the rich at work here

Isn't this how free markets are supposed to work?

shareholders have no government guarantee on their principal or any return OF principal or return ON principal

the shareholders didn't do their homework, or did their homework wrong. Those shareholders are being punished.

The shareholders who kept their powder dry and can come in and get a good deal are now rewarded (maybe - only time will tell if they get out at a profit)

Exactly how things should work. (Except for the part about the executives who ruined the value getting big paychecks, that kind of sucks)

the account holders have guarantees from the government on their deposits, so they get made whole. They chose an insurer that CAN pay out insurance. the free market to a tee.

[GRG55]

Re: Northern Rock, a deal done

no worries, mate - it's a fair cop - I don't see the socialism for the rich at work here

Isn't this how free markets are supposed to work?

shareholders have no government guarantee on their principal or any return OF principal or return ON principal

the shareholders didn't do their homework, or did their homework wrong. Those shareholders are being punished.

The shareholders who kept their powder dry and can come in and get a good deal are now rewarded (maybe - only time will tell if they get out at a profit)

Exactly how things should work. (Except for the part about the executives who ruined the value getting big paychecks, that kind of sucks)

the account holders have guarantees from the government on their deposits, so they get made whole. They chose an insurer that CAN pay out insurance. the free market to a tee.

Free markets? In this instance? Hardly.

The govt did what govts always do...bailed out the company to save jobs in a region where they have a lot of Labour voters. Now the issue becomes how are they going to recover those loans. As I understand it the current proposal on the table (Branson, Wilbur Ross & friends) involves only partial re-payment of the outstanding liability to the UK Govt. on closing. So the taxpayers continue to be exposed to the risk of the business, with the successful outcome being their govt eventually gets their money back. That ain't how capitalism is supposed to work, is it?