Should we pull the plug - Northern Rock makes hefty losses

"is it now time to let Northern Rock go, can we all continue to support the Bank with our own money. If this was a company then it would have gone into adminstration by know. Lets pull the plug on Northern Rock and let it close down - I know at lot of people will loss money but we can't afford to support the bank / share holders any longer"

by N Blakeley - recession 2009

 

Northern Rock has reported a loss of £724.2m for the first six months of 2009, compared with a loss of £585.4m in the first half of last year.

The nationalised bank said that 3.92% of its mortgage loans were more than three months in arrears, well above the national average of 2.39%.

It currently owes the government £10.9bn, but is waiting for European regulatory clearance for more funding.

Northern Rock was nationalised in February 2008

It had to be bailed out by taxpayers in 2007, when its model of borrowing short-term funds from wholesale markets to lend to mortgage borrowers was hit by the credit crunch.

It reported impairment losses from loans and advances of £602.2m for the first six months of the year, compared with £191.6m for the same period the year before.

What do you think?

[polldaddy poll="1371226"]

What do you think?

US House passes Obama's economic stimulus bill

House votes 246-183 to pass Obama $787bn (£547bn) plan to resuscitate the economy

The US House of Representatives has passed a $787bn (£547bn) plan to resuscitate the economy, handing President Barack Obama a big victory.

The measure passed 246-183, with no Republican votes. It will now go to the Senate, where a vote is expected later today.

The eight-inch-thick stimulus bill combines tax cuts for individuals and businesses with half a trillion dollars in government spending for infrastructure, health care and help for cash-starved state governments. Older Americans would get a $250 bonus social security check.

Seven Democrats voted against the bill.

Obama claims that the plan will save or create 3.5m jobs. But Republicans said it will not work because it has too little in tax cuts and spreads too much money around to everyday projects like computer upgrades for federal agencies.

Sourced from The Guardian

Brown under siege as Congress caps bankers' bonuses

A dramatic vote on Capitol Hill is set to bring major change to Wall Street's risk culture as cash incentives for executives, brokers and traders are limited to a third of their salaries. Gaby Hinsliff, Zoe Wood and Paul Harris report on the implications for Britain.

Gordon Brown was under rising pressure to clamp down on the City's bonus culture last night after the US Congress agreed to drastic curbs capping senior bankers' bonuses at a third of their salary.

The measures, which are expected to be signed into law by President Barack Obama (Barack Obama page on the Guardin website) this week, would apply to dozens of staff at American banks bailed out by the taxpayer and could cost Wall Street's wealthiest millions. Cash bonuses would be banned in favour of long-term share options, with the restrictions extending beyond a handful of top executives to senior brokers and traders.

read full article from The Gardian

Brown under siege as Congress caps bankers' bonuses

A dramatic vote on Capitol Hill is set to bring major change to Wall Street's risk culture as cash incentives for executives, brokers and traders are limited to a third of their salaries. Gaby Hinsliff, Zoe Wood and Paul Harris report on the implications for Britain.

Gordon Brown was under rising pressure to clamp down on the City's bonus culture last night after the US Congress agreed to drastic curbs capping senior bankers' bonuses at a third of their salary.

The measures, which are expected to be signed into law by President Barack Obama (Barack Obama page on the Guardin website) this week, would apply to dozens of staff at American banks bailed out by the taxpayer and could cost Wall Street's wealthiest millions. Cash bonuses would be banned in favour of long-term share options, with the restrictions extending beyond a handful of top executives to senior brokers and traders.

read full article from The Gardian

Banks to get bonuses

bankAs the government / general public have bailed out the banks. It is proposed that the banks will pay bonuses. So not only have the banks been run badly, they have gambled with our money (and lost) and had massive financial support from you and me, know their want to give bonuses out. I think this is unacceptable, if a bank gives out any bonuses than the government should with hold any further funding for any bank.

But if its the lower payed bank workers that get the bonuses than good , but when the bonuses go higher up in the banking system. Bonuses should only be awarded for hard and good work, so why are bonuses proposed to people that have directly gambled with our money, been bailed out by the government. 

Maybe now is the time to only have one or two banks, one privaltyly owned and other goverment owned. I now where I'd put my money. 

 

 

Lloyds defends staff bonus plan

Lloyds insists it is right to offer financial

rewards to staff who hit targets

Lloyds insists it is right to offer financial rewards to staff who hit targets Lloyds Banking Group has defended plans to reward retail and commercial staff with bonuses, worth a reported £120m.

Its subsidiary HBOS - bought with government backing last year - is to record a loss of nearly £11bn, raising concerns it may need more state help.

But Lloyds, already 43% taxpayer-owned, said its employees deserved "financial recognition" for hitting targets.

Shadow business secretary Ken Clarke has accused ministers of overseeing a "shotgun marriage" of the two banks.

In most cases staff bonuses would amount to £1,000 or less for employees earning about £17,000 per year, the bank said. The report comes amid speculation that the government - which has already poured £17bn into the group - may be forced to take a majority stake in Lloyds, or even nationalise it.

read full article click here

Banks to get bonuses

bankAs the government / general public have bailed out the banks. It is proposed that the banks will pay bonuses. So not only have the banks been run badly, they have gambled with our money (and lost) and had massive financial support from you and me, know their want to give bonuses out. I think this is unacceptable, if a bank gives out any bonuses than the government should with hold any further funding for any bank.

But if its the lower payed bank workers that get the bonuses than good , but when the bonuses go higher up in the banking system. Bonuses should only be awarded for hard and good work, so why are bonuses proposed to people that have directly gambled with our money, been bailed out by the government. 

Maybe now is the time to only have one or two banks, one privaltyly owned and other goverment owned. I now where I'd put my money. 

 

 

Lloyds defends staff bonus plan

Lloyds insists it is right to offer financial

rewards to staff who hit targets

Lloyds insists it is right to offer financial rewards to staff who hit targets Lloyds Banking Group has defended plans to reward retail and commercial staff with bonuses, worth a reported £120m.

Its subsidiary HBOS - bought with government backing last year - is to record a loss of nearly £11bn, raising concerns it may need more state help.

But Lloyds, already 43% taxpayer-owned, said its employees deserved "financial recognition" for hitting targets.

Shadow business secretary Ken Clarke has accused ministers of overseeing a "shotgun marriage" of the two banks.

In most cases staff bonuses would amount to £1,000 or less for employees earning about £17,000 per year, the bank said. The report comes amid speculation that the government - which has already poured £17bn into the group - may be forced to take a majority stake in Lloyds, or even nationalise it.

read full article click here