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Branson - Northern Rock


bowlingcrofty
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Guest ObiChrisKenobi

Hmm.

 

Was this something Ashley was aware of? Or has he just dumbed his way out of a potential deal with Vigrin Money?  :lol:

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Should be interesting- The 'new' NR is massively under-lent- intentionally so- and therefore has quite a lot of capacity for new business. Although it has been operating at a loss, this is simply because of the imbalance of deposits to lending as the government kept the powder dry, allowing a new owner more scope to shape the business.

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Be interesting to see how they approach the branding! If they choose to take up Northern Rock's sponsorship options.

 

Could this see us playing at the Northern Virgin Arena, or wearing Virgin Rock shirts.

 

Could be an unfortunate sponsor if it goes ahead, would be Virgin on the ridiculous.

 

 

:eek:

 

 

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I'm pleased that it's saved the jobs at Gosforth, other potential buyers were going to change the HQ location. The bad news is though that the Northern Rock foundation will only exist for one more year and that the name Northern Rock will no longer be used.

 

Good news for jobs in the area and for those who bank with the bank.

 

Bad news for identity and local charities.

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Be interesting to see how they approach the branding! If they choose to take up Northern Rock's sponsorship options.

 

Could this see us playing at the Northern Virgin Arena, or wearing Virgin Rock shirts.

 

Could be an unfortunate sponsor if it goes ahead, would be Virgin on the ridiculous.

 

 

:eek:

It's already been said that it will be rebranded to Virgin Money.
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Guest bimpy474

I know this Government are getting slagged off, rightly so most of time but at least they put in a stipulation that there can be no further compulsory redundancies, on top of those already announced, for at least three years, at least gives people working for the bank some piece of mind.

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I know this Government are getting slagged off, rightly so most of time but at least they put in a stipulation that there can be no further compulsory redundancies, on top of those already announced, for at least three years, at least gives people working for the bank some piece of mind.

Add to the fact that the HQ will stay in Newcastle and that has to be a bonus as well.

 

The only downside is the Northern Rock foundation which will lose out now.

 

I'd like to see Virgin money go on and expand the bank and not to just keep the existing branches but to create new ones and offer other finance products, like car finance etc. It would be a shame if from now on it just sits as it is.

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Guest bimpy474

I know this Government are getting slagged off, rightly so most of time but at least they put in a stipulation that there can be no further compulsory redundancies, on top of those already announced, for at least three years, at least gives people working for the bank some piece of mind.

Add to the fact that the HQ will stay in Newcastle and that has to be a bonus as well.

 

The only downside is the Northern Rock foundation which will lose out now.

 

I'd like to see Virgin money go on and expand the bank and not to just keep the existing branches but to create new ones and offer other finance products, like car finance etc. It would be a shame if from now on it just sits as it is.

 

Well with Branson in charge it'll have a good a chance as any, in the long term expanding will be great, just right now i'm still at the save the existing jobs stage, must say it does look like a decent future could be just over horizon though.

 

Northern Rock Foundation...........losing name..........happens a lot up in the North East like :D

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Guest bimpy474

Good news, but a bit suspicious of the timing of the announcement, giving the recent news about Alcan. Cynical from the government, IMO. :thdn:

 

Unfortunately they have indeed continued in the same vain as the last lot  :sadnod:

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Opening a new Virgin Money headquarters in Newcastle and promising no compulsory job cuts for 3 years.  There are far worse companies to be taken over by, look at what those kunts at kraft did when they took over Cadbury.

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It's been sold at a massive loss, yet some of you are acting like this is good news? :idiot2:

 

It's only our money they're pissing away, what does it matter..  nothing like a good sound-bite.

 

There's nothing to say it's being sold at a loss. It's not as much as the capital injection into the old NR, but only time will tell if the government ends up, down, or somewhere in the middle as this is equally dependent on the performance of NRAM.

 

Branson is actually paying a premium to wider bank multiples because this is a lender with a pretty clean balance sheet and a huge capital ratio (giving plenty of scope to get lending first, rather than needing to attract deposits and dragging on returns). It already meets the hurdles set out by new regulation and doesn't have to go through a lot of the major structural change that faces many of their proposed competitors.

 

Sure HMG could have waiting until they were 100% in the black, but then they could have been waiting a long time.

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OK, so given there were no better offers on the table, the government should just have held onto it until when? When NR was nationalised the perceived crisis was one of over-cooked mortgages and over-dependence on wholesale funding. It was not the full-blown disaster that emerged aroudn 6 months later. Clearly, since then most shares of banks have been absolutely hammered to reflect the fact they are not going to be nearly as profitable as they had been before. What is to say there would ever be an offer above the level of capital injected into NR's former bloated carcass?

 

And indi, there is a reason that the Independent has put the marks around 'at a loss'- because what is being sold is just a chunk of what was nationalised. They aren't the same thing- but it makes for a good headline. The eventual gain or loss on the portfolio of UK Asset Resolution and its £21bn of loans (which won't be fully known for years) could make £400m look like a rounding error.

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It's been sold at a massive loss, yet some of you are acting like this is good news? :idiot2:

 

It's only our money they're pissing away, what does it matter..  nothing like a good sound-bite.

 

THIS. ^^^^^ :angry:

 

Makes fuck all sense to sell at a loss.

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It's not being sold at a loss. It cost the government about £1.4bn to buy it then they split it into two different banks. Only one part of the bank being sold which could rise to £1bn. We then have to consider the remaining part of the banks which includes private business deals, and high risk loans and mortgages which the government still owns and will defiantly get at least £400m from it.

 

I'm pretty sure the government has made a profit on Northern Rock.

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We then have to consider the remaining part of the banks which includes private business deals, and high risk loans and mortgages which the government still owns and will defiantly get at least £400m from it.

 

If there was any real certainly about the value of the NRAM business, they'd probably be trying to sell that too. The UK economic outlook is just too uncertain for anyone to commit to buying such a large portfolio of assets. HMG has £21bn out the door to the 'bad bank' and although the loans are generally performing well, who knows what would happen if the economy remained in the clarts for a long period of time.

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