BBC Question Time (21 February 2008)

On last night's BBC Question Time, Northern Rock shareholders including NRSSG founder Robin Ashby and former Rock employee, Derek Grainger, put questions to the panel about the future of the Rock, the government's handling of the issue, and the extent to which the 'independent' valuation of the company will be truly independent.

An online stream of the programme is available online at: http://news.bbc.co.uk/1/hi/programmes/question_time/default.stm

Northern Rock media requests

1. The BBC TV Politics Show would like to talk to ex-employees of Northern Rock for their show on Sunday night. If this is you, please ring Mark on 07714 322 629

2. BBC Question Time will be in Newcastle for a Northern Rock special on Thursday evening. They are looking for talkative shareholders to be in the audience. Please see below for more information.
Venue: Performance Academy, Newcastle College, Ryehill Campus, Scotswood Road , Newcastle-upon-Tyne, NE4 7SA.
Arrival Time: 6.00 – 6.30 p.m. departing at approx. 9.30 p.m.
To apply or for further information please phone 01299 829299 (normal terms and conditions apply).

3. Thanks to all of you who voted on fair compensation on http://nrssg.blogspot.com. If you haven't already voted, then please do so

4. I have been offered a free consultation with a London lawyer and am taking up the offer.

UKSA Northern Rock Update 24

The UK Shareholders Association writes in its latest bulletin:
"No sooner had we issued a note saying how stupid was it for the Government to nationalise Northern Rock than they went ahead with it. The statement from Chancellor Alistair Darling given at a press conference today (Sunday) can be read at:
http://www.hm-treasury.gov.uk/newsroom_and_speeches/speeches/statement/statement_chx_170208.cfm

We immediately issued a press release which can be seen at:
http://www.uksa.org.uk/UKSA_Press058_NRK_Nationalisation.pdf

As the shares will be suspended from trading on the stock market before it opens tomorrow you are effectively locked in and they are no longer saleable. You will have to rely on any offer of compensation from the Government (which clearly will be nil as explained in our press release) or on any legal action we or other parties may pursue.

http://www.uksa.org.uk/NorthernRock_Update_24.pdf

Shareholders react to Rock nationalisation

NRSSG will be posting our reactions to the recent news that the government is to nationalise the Northern Rock soon.

In the meantime, please register your views on our poll (see right).

UKSA Northern Rock Update 23

Government About to Make a Decision
It is expected that the Government will make a decision about their preferred solution to the problems of Northern Rock in the next day or two. It was reported by the BBC on Tuesday that the Treasury weren’t happy with either the Virgin offer or the in-house company proposals led by Paul Thompson, although they considered the Virgin one superior. Both contenders were told to go away and improve their offers, otherwise the Government might take the nationalisation route as it would offer better value for the taxpayer.

http://www.uksa.org.uk/NorthernRock_Update_23.pdf

Northern Rock press release, 15 February 2008

Northern Rock Plc press release, 15 February 2008
Strategic review update

Revised Restructuring Proposal

The Board of Northern Rock plc (the "Company") confirms that, further to its announcement on 4 February describing the outline terms of a standalone solution for restructuring the Company, submitted to the Tripartite Authorities for funding approval, it has now submitted a revised proposal (the “Revised Restructuring Proposal”). The Board has requested that the Tripartite Authorities consider whether they are prepared to provide funding for the Revised Restructuring Proposal on the basis previously announced by them.

The Revised Restructuring Proposal reflects changes designed to address certain aspects of the original proposal raised by the Tripartite Authorities. It does not involve any significant change to the underlying business plan, which continues to show a controlled reduction in the assets held on the Company's balance sheet and a resulting reorganisation of its operations, before returning to modest growth in prime quality lending in line with the Company's ability to raise retail and wholesale funds.

The key changes in the Revised Restructuring Proposal are as follows:

• An equity raising being now not less than £700 million (which again would be conditional upon EU state aid approval)
• An improvement in the economic returns to HM Treasury and the Government for providing ongoing financial support to the company.

The Board continues to believe that the Revised Restructuring Proposal, once implemented in full, will result in an independent, well-capitalised, low cost and low risk mortgage and savings bank. The Board also believes that the Revised Restructuring Proposal is capable of meeting all the objectives publicly announced by the Tripartite Authorities.

There can be no certainty that the Revised Restructuring Proposal will be supported by the Tripartite Authorities, or that it will be selected by the Board as the best option for the Company following a further review of other proposals received and further discussions with the Tripartite Authorities. In addition, requisite shareholder and third party consents may be required for implementation of the Revised Restructuring Proposal. These consents include, but are not limited to, the approval by the EU Commission in respect of any state aid involved in the Revised Restructuring Proposal and the associated financing arrangements.

UKSA Northern Rock Update 22

The latest Northern Rock update from the UK Shareholders Association is now available online, in PDF format, at:
www.uksa.org.uk/NorthernRock_Update_22.pdf

"And the award for the most shameless junket goest to..."

And the award for most shameless junket goes to ... Northern Rock

Independent on Sunday, 11/02/2008

Another awards ceremony, Another set of red faces. The first nominee to come out of the hat at last Tuesday's Mortgage Strategy Awards 2008 was blackandwhite.co.uk. This provoked much mirth, as the company has gone into administration after pulling out of the regulated mortgage market. Needless to say, blackandwhite did not win an award, unlike quasi-nationalised Northern Rock, which somehow found the money to pay £3,000 for a table where the champagne, naturally, flowed. Robin Ashby (pictured), spokesman for the Rock's small shareholders and tireless campaigner against its nationalisation, was not impressed. "While they're trying to say it's business as usual, it would be helpful if they were more frugal with optional entertainment opportunities," he told us.

http://www.independent.co.uk/news/business/analysis-and-features/the-diary-780371.html

Northern Rock shareholder Robin Ashby talks to Sky News

Northern Rock Small Shareholders' Group (NRSSG) founder Robin Ashby talks to Sky News on 1 February 2008 about the Northern Rock bidders, the future of the company and its importance to the North East.

UKSA Northern Rock Update 21

The latest Northern Rock update from the UK Shareholders Association is now available online, in PDF format, at:

www.uksa.org.uk/NorthernRock_Update_21.pdf

New York Times: "Northern Rock’s Troubles Demoralize Its Hometown"

Today's New York Times (4 February 2008) has an interesting article on the effect of the problems of the Rock on Newcastle:

From his office in the outskirts of this city in the northeast of England, Robin Ashby, a public relations executive and shareholder in the troubled British lender Northern Rock, can see a large construction site where Northern Rock is building the latest extension to its headquarters.

The cranes and scaffolding are remnants of better times, when Northern Rock was among the most successful financial services companies in the country and helped a region economically ravaged by the collapse of the coal and shipbuilding industries in the 1970s get back on its feet.

But in September, a shortage of funds caused a run on the bank, which could now face nationalization, should an effort being led by Prime Minister Gordon Brown’s government fail to find a buyer.

“That would be a grievous blow to us,” said Mr. Ashby, whose investments in Northern Rock shares dropped to $500 from $10,000 in six months. “Financial services were one of our only saviors in the region.”

After Olivant

NRSSG founder Robin Ashby writes:
The decision of the Olivant group not to proceed with its offer to "buy in" to Northern Rock, announced only shortly before the deadline for submission, was both a shock and a great concern.

If what appeared to be a sensible and fair solution (which had been supported by shareholders large and small) could not be made financially viable, what does this tell us about the attitude of HM Treasury? Are they playing macho games again? And are they forgetting that although they may bully their preferred solution through the management and a shareholder meeting, each of us have a further vote with our wallets when they come to ask us to contribute half a billion pounds or more in a rights issue.

It appears Virgin/Branson hasn't improved its terms, and what we knew of that bid had received zero support. The management proposals are of course unclear, but would leave us in control of our company and meet our objectives. We shall watch out for detail with interest, but as always your views will be very welcome - please post them as comments on the blogspot http://nrssg.blogspot.com. We'll also get another straw poll going here soon to test opinion.

UKSA Northern Rock Update 20

The latest Northern Rock update from the UK Shareholders Association is now available online, in PDF format, at: www.uksa.org.uk/NorthernRock_Update_20.pdf

It summarises the House of Commons Treasury Committee report of 24 January, The run on the Rock and laments 'yet another unfair attack on shareholders':

So the report goes on to conclude “that shareholders as a whole must be viewed as taking a risk from which they sought a reward and for which they are now paying a price”. In effect they seem to be implying that it is no concern of theirs that shareholders lose all because the stock market is pure speculation – utter nonsense in my view. Investors rely on fair and adequate regulation of stock market companies and they should be adequately protected against deficient regulation. That is why we have argued all along that the Government has some moral if not a legal responsibility to promote and support the interests of shareholders in Northern Rock because the Government was ultimately responsible for many of the failures that contributed to the difficulties of the company

.

Poll: Shareholders favour Olivant bid

A poll on the NRSSG website has shown that three-quarters of all Northern Rock shareholders support the bid to run the Newcastle-based bank by the Olivant consortium, led by Luqman Arnold. On the NRSSG online poll:

• No-one supported the bid by the Virgin Money bid led by Richard Branson.
• 75% of those who voted supported the bid by Olivant.
• 25% of those who voted supported an in-house bid.
• No-one supported nationalisation.