So The Northern Rock Bank announces hugh losses, then the government announces that some of the loan that they lent to Northern Rock is gonna be written off, not that they call it that, what they’ve done is change £3bn of ’the loan’ into equity to bolster the banks balance sheet. What a load of bollocks!!! From what I remember, the tax payer was gonna be footing the bill for ‘the loan’ So now let me get this right……taxpayers are gonna be paying the government back for a loan that they have given to the bank as equity, apparently it’s what shareholders at other banks have done during this economic/credit crisis, well good for them, but are they getting someone else to pick up the bill for the cost of their shares? and surely this means that if taxpayers are paying for ‘the loan‘, they are now shareholders in Northern Rock, and entitled to any profit that is made? It makes sense to me, but then what the fuck do I know!
Northern Rock should have been left to under. The government shouldn’t have got involved.
ReplyDeleteMade me sick all those shareholders bleating about how the value of their investment was being devalued and it was the governments fault for prevaricating. Sorry, but that’s what can happen when you invest. There is always a risk. Investments can go up, and down. Fuck ‘em.