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The Northern Wreck

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Gordon Brown, Alastair Darling

End game for Northern Crock Wreck

The game is up, nobody wants to buy it outright, share dealings were suspended today after the price crashed under £1.00, the markets have delivered the verdict, the wreck is worthless!

Despite wanting our ball back it is difficult to immediately see any rescue for the tax payer, now that the Bank of England’s exposure is revealed as a conservative £40billion, let alone shareholders, who frankly should now become the least of our worries. Let’s put this shambles into perspective, £40billion is more than most government departments have to waste spend each financial year and if the wreck had been allowed to fail and fall in the first place £40billion would more than have covered the costs of regeneration, new job creation, and the unemployment costs of 10,000 or so job losses in the North East.

If Gordon Brown’s government had been trading as UK PLC, the shareholders would have terminated the employment of the Chairman and Chief Executive weeks ago, the witless and incompetent double act have thrown good money after bad in a disastrous political manoeuvre designed to protect Labour votes in their North East strongholds. It wasn’t the queues at the doors that worried them, it was the mistaken belief that seats would be lost up here, but let’s be honest there is still a degree of truth in the old adage that a monkey with a red rosette and a rose between it’s teeth would still be elected in most seats in the North East.

We could probably have coped with the loss of up to 20,000 jobs, we are becoming quite used to the idea of picking ourselves up since the depression of 1926, we’ve done it often enough and always bounce back, we have after all the fastest growing economy of any region in the UK. The people of North East England are far more inventive, enterprising, and energetic than the Bruins give us credit for.

Darling’s failure to give any cast iron guarantee that the tax payers cash will ever be returned in full is nothing short of treachery, George Osborne gave him short shrift yesterday:

“The question we now ask of you is simple. Have you been honest with taxpayers about the risks they face and have you told the whole truth? We have a Chancellor who has made guarantees to the taxpayer he cannot be sure of honouring. And we have a Chancellor whose weakness is contributing to the instability of the financial system. That is why we have a Chancellor whose job is on the line.”

The Daily Telegraph asks “Who should foot the bill?”, as you can imagine the comments are piling up thick and fast, The Times offers four options for the future of the Crock, none of which are very palatable, and there are two interesting posts in the Financial Times’ Alphaville blog the first of which screams out

“Someone out there has now got the message. Over and out. Loud and clear”

and the second Alphaville entry gives you a veritable feast of links to help you understand just how bad this mess is.

I guess I agree with Vince Cable, even though I am no fan of nationalisation, however the tax payers’ interests are now higher than anyone else’s. Nationalise it for £1, gradually run it down, offer no more mortgages and have a fire sale of those already committed, sell off the assets, and recover as much of our cash as possible before consigning the Wreck to the dustbin of banking history.

The Northern Crock is no more, it is a non bank, it is dead, it has ceased to be, this bank wouldn’t go oomph if you put 40,000 volts up it, this is a dead bank!

Written by curly

November 20, 2007 at 12:37 pm

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