Bank of England learns lesson from Northern Rock rescue debacle
Times Online (Free subscription) | 11/24/2009
When you are rescuing the banking system, niceties go out of the window.
Northern Rock
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A fascinating insight into 11 Downing Street
Talk about Newsnight (Free subscription) | 8 hours ago
... tried to explain to us the legal basis for the chancellor's decision to guarantee all savings in Northern Rock; oh and traipsed through the subterranean passageways as the PM and chancellor bailed out the banks. These rooms have been the scene of some of the most testosterone driven crisis meetings of modern economic history - the sacking of Fred Goodwin and Andy Hornby, the ...
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Bank rescues: Bigger than you thought
The Economist (Free subscription) | yesterday
How some shareholders lost out, and all must be wiser in future TWO years ago when Northern Rock, a mortgage bank, was teetering on the brink, the financial authorities considered keeping it afloat with secret emergency lending. Mervyn King, the governor of the Bank of England, would have liked to do it, he said later, though others say that initially he may have underestimated the seriousness...
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Darling Defends Secrecy Of £62bn Bank Loans
Sky News (Free subscription) | 11/25/2009
Alistair Darling has defended the secrecy surrounding £62bn of loans to prop up RBS and HBOS as a necessary measure to prevent a Northern Rock-style bank run.
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Darling defends secret loans to keep HBOS and RBS afloat
The Independent (Free subscription) | 11/26/2009
... the emergency financing secret, pointing to the disastrous consequences of the publicity following Northern Rock's call on Bank of England funds that sparked a run on the bank and led to its enforced nationalisation."Disclosure of individual operations could lead to a loss of confidence and exacerbate any short-term liquidity problems. That is exactly the problem we saw with ...
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Financial News in the papers Wed 25th Nov 2009
Green Gem IFA Blog (Free subscription) | 11/25/2009
... Services Authority chairman Sir Callum McCarthy, lambasted for failing to spot the rot at Northern Rock, could end up making millions from picking over the bank's remains..
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Using A Recession To Your Advantage
Little Earner (Free subscription) | 10 hours ago
... share values? Buying into companies who have had a short fall, especially the banks, such as Northern Rock or Lloyds Bank, will soon bounce back to normality. This is where a medium term investment will work wonders. Recessions typically last for 6-18 months. Putting your money into shares during one has its risks, but the rewards are far more appealing when the public forget about the fear....
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Miriam Lord in yesterday's Times
Politics.ie (Free subscription) | 15 hours ago
Quote: Richie Boucher, before his big promotion, was present back in July of 2008. Unequivocally, he declared, we do not believe there is a Northern Rock lurking in Ireland. (Correct. There was a whole shed load of them.) His colleague, David Guinan, stated: We pride ourselves on the fact that we have been and continue to be very prudent and responsible. Donal Forde of the AIB offered...
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Darling Defends Secret Loans
Law Blog - WSJ.com (Free subscription) | 11/26/2009
The provision of the secret loan contrasted with the events of September 2007 when U.K. authorities were obliged to announce the provision of emergency liquidity assistance to struggling lender Northern Rock. Media reports about the loan precipitated a crisis at Northern Rock, which ended in the lender's nationalization and led authorities to introduce legislation handing the BOE power...
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Economists Nasty? Surely Not!
SUBROSA (Free subscription) | 11/25/2009
... here and the figures for the UK are, to say the least, not encouraging. Between 'secret' loans to Northern Rock in 2007 (a year before the global crisis) and the furtive behaviour of Gordon Brown in 'selling' HBOS (which at the time had been given an injection of £25.4 billion ) to Lloyds TSB, is it any wonder small investors feel angry at not being kept informed? Then again small...
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City Diaries: Your comments 20 Nov
BBC News (Free subscription) | 11/24/2009
I think we need more clarity on the "too big to fail" argument. CIT Group and Northern Rock are very different beasts. Northern Rock takes consumer deposits, CIT is a lender to businesses which sources its funds from the market. Some commercial banks are too big to fail in that their affairs are so complex that the impact of failure on the broader economy is hard to assess and potentially...
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Michael Owen's Not Exactly A Bundle Of Laughs!
Newcastle United Mad (Free subscription) | 11/25/2009
Picking up £108,000 per week at Newcastle, Michael Owen was laughing all the way to the Northern Rock.
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David Prosser: Honesty is always the best policy
The Independent (Free subscription) | 11/25/2009
Outlook The scale of the loans provided in October 2008 to HBOS and Royal Bank of Scotland are breathtaking, but the fact the Bank of England has managed to keep them secret until a time of its own choosing is also interesting. A little over a year previously, when news leaked out that the Bank was providing emergency funding to Northern Rock, there was a noisy protest that the lender of last...
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Can you keep a £61 billion secret?
Next Left (Free subscription) | 11/24/2009
Is there a legitimate case for not revealing an additional £36 billion for RBS and £25 billion for HBOS advanced by the Bank of England as lender of last resort in Autumn 2008? Faisal Islam of Channel 4 news can see the case after the Northern Rock experience the year before. But, no doubt rueing the scoop that got away, the BBC's Robert Peston is sceptical . He notes that the precedent...
Explore : Islam
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Darling broke rules on bank loans -MP
Reuters UK (Free subscription) | yesterday
... he approved them at the height of the credit crunch last year to avoid a repeat of 2007's run on Northern Rock's deposits.But Leigh, whose committee scrutinises government spending, said Darling should have told him and McFall in private, in line with finance ministry guidelines."I am greatly disturbed that the decision was taken to by-pass the rules in this case and would appreciate a full...