Thursday, 2 July 2009

Northern Rock......Is it about to go for good.

So it transpires that Northern Rock is deep in it again.

It is estimated to have lost more than £500m in the past six months, putting it in breach of regulatory rules even after they were relaxed for the nationalised lender last year.

Despite breaching every rule on capital requirements in the book, the Financial Services Authority is allowing the bank to continue writing new mortgages and taking deposits. While rivals are subjected to punitive new capital standards, the key measure of financial strength, the City watchdog has agreed to ignore the rules for Northern Rock.

The FSA had previously agreed to waive its rules by allowing Northern Rock to include tier two capital, a less secure form of financial reserve, to meet its regulatory minimum. However, the bank said yesterday that, even with the waiver, its “capital base has now reduced to a level below its minimum regulatory capital requirement”. As a result the FSA has been unable to extend the waiver, which expired on June 30.

So Grodon.
Despite all you said about saving the bank, all you said about tighter regulation.
Despite you shoving my cash at it, it still flouts the rules, is in deeper smelly stuff.

What do you suggest Mr Party of saving tha banks, another huge tax payers windfall to give it the much needed cash it needs................I bloody well hope not!!

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