This has appeared in the papers.
Robin Ashby spoke on Radio Newcastle this week about
- the latest results
- bonuses for staff
- advisers
The loss doesn't necessarily mean anything. There could be more "clearing of the decks" - financial engineering so that downgrades can be written down, which new owners could write back in to make a profit. Or to create more tax losses and reduce tax on future profits. It's interesting that NR is considering buying assets which are supposed to be "bad" back from the "Bad bank" - Northern Rock Asset Management. They weren't so bad after all? Which is what we've been saying for a long time. The proposal to restart 90% mortgages would help first time buyers who have great difficulty with the large deposits lenders are currently demanding of them.
We have no problem with bonuses for counter staff and junior levels. This money would most likely feed straight back into the local economy, as it will be spent mostly in the region. We have a lot more problem with multi million pound bonuses for people at the top of the tree.
Why is more high priced help being brought in? A fortune is already being spent on consultants. Any buyer will want to check the books. The newspapers will tell you who could be interested in buying Northern Rock. A quick email to Branson and others who've already put their heads up is all that's needed. There's too much incestuous feeding of City slickers already, we can't see why this is necessary.
Your comments welcome as always!
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