Northern Rock Watch: Adding The Numbers In Today’s Media
NORTHERN ROCK is nationalised. It is now as Safe as the Bank of England.
Hereunder is a round-up of Northern Rock facts in today’s media.
Northern Rock money is now your money, so it’s good for journalists to be precise:
DAILY EXPRESS (front page): “NORTHERN ROCK: NOW IT’S A TAXPAYERS’ NIGHTMARE”
This time last year, the bank was worth around £5.3 billion. It is now worth just £375 million.
DAILY MAIL (front page): “£100m GAMBLE WITH YOUR CASH”
The move severely dented Labour’s reputation for economic competence and leaves taxpayers responsible for the crippled bank’s £100billion in mortgage debts – just as the housing market has entered a downturn.
Facts:
The Conservatives claimed the decision meant every family in Britain was effectively being saddled with a “second mortgage” of £4,000…
The Government now faces the prospect of being blamed for the repossession of the homes of defaulting Northern Rock mortgage-holders and for job losses from the bank’s 6,500-strong workforce in Labour’s North-Eastern heartland…
There is also likely to be a drawn-out legal battle with the 180,000 shareholders who face getting nothing back from their investment.
DAILY MIRROR (front page): “WHAT IT MEANS FOR YOU”
At the moment, taxpayers are propping up the Rock with £55billion in loans and guarantees. The bank, worth £5.3billion this time last year, is now worth just £375million
THE SUN: “Crisis Rock To Be Nationalised”
But Chancellor Alistair Darling said it was the only way to safeguard the £26billion of taxpayers’ cash that had kept the bank from going under…
An independent panel will decide the amount of compensation for the bank’s shareholders — at least 150,000 of whom are small investors
THE TIMES (front page): “Rock takeover brings back nationalisation”
“Gordon Brown signed off the decision to mount the first national-isation in modern times of a major high-street bank yesterday afternoon, adding a £90 billion liability to the Government’s balance sheet… The mortgage lender already owes taxpayers £25 billion, but its total liabilities have been assessed at £91 billion, for which the Government is responsible…”
The bank employs “more than 6,000 people”
THE GUARDIAN (front page): “Darling under fire as Northern Rock is nationalised”
Since it emerged five months ago that Northern Rock had sought help from the Bank of England, it has relied on £55bn of taxpayers’ guarantees to stay in business
Later:
Martin Jacques: The economic and political consequences will be of such a scale that they are impossible to comprehend. The present crisis has been long in the making, even if it has been obscured by the US spending over a decade in denial, as illustrated by the absurd post-9/11 neoconservative hubris about America becoming a latter-day Rome and the failure to address the growing imbalances between the US as a huge over-spender and East Asia as a massive saver.
DAILY TELEGRAPH (front page): “NORTHERN ROCK NATIONALISED”
The unexpected move left the taxpayer liable for close to £100 billion and led to a furious reaction from shareholders, who threatened legal action… Investors in Northern Rock, which has about 144,000 small shareholders, are likely to take legal action.
THE SCOTSMAN (front page): “Humiliated chancellor takes Rock public”
Says Shdow Chancellor George Osborne:
“Gordon Brown has dithered his way to the disaster of nationalisation. Now the taxpayer will bear the full risk of lending £100 billion of mortgages in an uncertain housing market. We will not back nationalisation. We will not help Gordon Brown take this country back to the 1970s.”
What’s a few billion between friends…
Posted: 18th, February 2008 | In: Money Comments (9) | TrackBack | Permalink
