Newest Review: ... lender has been under control of the Government though, they have tightened up their lending policy quite significantly. Firstly they do n... more
Darling buds of decay
Member Name: 1st2thebar
'Darling buds of decay'
~ Northern Rock part 2 ~
Please Note : > This review is based on the Northern Rock fiasco <
Are we about to see more long queues outside Northern Rock again, like in September 2007? Now that the head of department has gone 'the fall guy'; we could now be witnessing a reality check credit carnage worse than Barings Bank. I am now feeling sorry for Mr. Adam Applegarth (the fall guy) which is highly unusual for me; as since is resignation nothing has changed.
Northern Rock shares are lifeless in the market and scarcely rising to any form of normality. This is just 2 months on from their 25 billion government payout stroke intervention. Yet it looks like it was just a waste of money. Something that has been very much part of Mr Brown's government. This fiasco looks to have super-seeded the biggest joke, the 'Millenium Dome' by over 25 times.
I did say in my first review that Applegarth would become a 'household name'. I, at the time forgot that financial institution heads do not get involved with the media circus and usually mince off into the shadows with a hefty pay-check to help them through the difficult period of watching daytime tv. It really is my understanding with many financial institutions that the heads are 'faceless', I suppose it comes with the territory; or because they are spineless and hide behind 4pt fonted legal matters that is so evidently part of the whole institution, rather than an individual, however spineless and clammy their hands are. I recommend Applegarth should send an e-card to Mr.Darling this Christmas it is less expensive.
I also mentioned there was a link to new laws on 'the power of attorney' in the last review that commenced on 01/10/2007. Government shot this crucial reform through without a hiccup or without hardly any media coverage, except on 29/09/2007 a 3 minute 'after thought' on the news was shoved through. Leaving less than 48 hours for any-one to do anything about the looming 100 GBP fee. Congratulations, Government and the BBC working in tandom, it certainly makes a change. The words 'pie' and 'slice' in the same sentence comes to mind. - So what has happen since?
- The Northern Rock decay -
The onslaught regarding to market shares has plunged another 16% recently and has acted as another hammer blow to Northern Rock bank's survival chances, which is worth a bet by the way, for those wanting to reclaim some lost pension back.
This is when reality surely has hit the fan; despite all the hype and September media coverage stating to customers and savers that the forecast is good, and that it is all just a blip; appears to be incorrect. Working Lunch has a crazy oufit of presenters who constantly give out wrong material to serious investors; Northern Rock's report exemplifies that notion when one supposedly dozy expert claimed that time was the essence and everyones' hard earned cash will be safe. It comes to no surprise that it appears to be not the case.
Northern Rock shares has dropped so far in value it's become a shadow of it's formal self. It cannot go on as it is going and surely there has to be a cut-off point, also the 25 billion government cash injection is not an ongoing reward scheme the government can reward them with, though it could be a good time to put a 'for sale' sign up and see who comes knocking.
- The decay deepens -
Today 20/11/2007; the stockmarket values the bank at just under £470m. That ranks the banking giant as a much smaller company; yet this is a company still is on paper included within the FTSE 100 index which is regarded as the largest blue-chip businesses in Britain.
Unbelievably, many experts are still pointing the finger at the Bank of England and the Financial Services Authority (FSA) for failing to rein in Northern Rock's aggressive expansion in the mortgage market, as stated in my original review; and an investigating report is due in 01/2008.
Notably the US financial market has played a big part in all of this as the 'credit crunch' will inevitably hit UK households for up to an estimated 2 years. In which time growth will be small - but no recession. I've been very aware that economists do not like to use words such as 'recession'. However, it does sound so theatrical.
I also mentioned that, last October 2006, 150,000 low-income families lost their hard-earned Christmas following the collapse of disgraced hamper/voucher firm Farepak. - yea, this has reared up again recently due to Northern Rock's circumstances; as no-body has received any money as yet; due to this, many families paid out in credit last Xmas and spent over a year in paying it back. This left some of the country's poorest people nursing a loss of £45 million.
The government has become questionable to extreme double standards; they have forgotton these people and the majority of which voted for labour in the 2005 general election. It is really sad.
Northern Rock's demise looks worrying for the credit hungary souls; it is a lifestyle that has engaged the Western world for many years. It could be time for change, but that could been even more woes. Wages do not match-up with responsibilities, such as normal living costs and family expenditure. Something has to give. Rewarding loyalty is a starting point, but not in shares Northern Rock.
- Trading lottery -
Northern's trading in the shares market has turned into a crazy horse race lottery fiasco. It is making the investors very nervous as they are not gamblers. It has become dementing, because the market you are buying into does not exist, and therefore has developed into a cash cow 'black hole'. Just remember this Barings Bank was bought for £1.00! - Due to the chronic state of Northern Rock's shares, they should be suspended till further notice. If this was a boxing match the towel would of been thrown into the ring by now.
One last thing, "Mr. Darling, can you please refrain in your seat, you are making me very nervous.
Thanks for reading this review.
DooYoo - 20/11/2007 - copyright 1st2thebar
Summary: Northern Rock Summary - fiasco
More reviews in the field of Mortgage
- Oh I'm not sure I'll ask some one more experienced
- Personal experience of Alliance & Leicester
- Halifax lost me my dream house
- Probably the worst bank in the world
- Halifax Mortgage Warning - my personal experience!
- Stressful, difficult, painful experience - avoid
- Local building society that it worth checking directly for both savings and mort ...
- Solid Building Society But Only Average Rates
- Counter service a sheer delight - telephone manner has some gaps
- Halifax Mortgages: gave me a headache