Tag Archives: northern rock

Stacy Summary: Wonder if Tesco still interested in buying the Northern Rock turkey?  The other thing about these headlines is that the state of the UK economy and infrastructure are in a bigger state of disaster than the US and most of my friends in UK have far more debt and lower income than my US friends.  I really can’t believe that we aren’t seeing the same levels of bankruptcy and homelessness as we see in US at the moment.  I suppose it is that there is a bigger public safety net in UK?

• Northern Rock losses escalate, £500 million in past six months
  

Analysts calculated that, to be in breach, the bank must have lost more than £500m in the past six months alone. Last year, Northern Rock made a £1.36bn loss after £1.15bn of bad debts. In December, a third of its £67bn mortgage book was in negative equity.

Despite breaking the rules, the FSA is letting the bank continue to write new mortgages and take deposits. Northern Rock is planning a capital restructuring that requires European state aid clearance and the regulator has agreed that “it does not currently intend to restrict the activities while the plan is implemented”.

• UK student grants and loans frozen, fees rise

• UK passengers (& taxpayer) to pay price for crisis on the railways