Dear Mr Cummings,
I am writing to ask you for your support in trying to get the government to compensate all the people who were robbed of half the Equitable life pensions they had worked for.
The ombudsman's report recommended that the government should give compensation after 4 years of investigating the reasons for the losses.
I am 79 years of age and living on the totally inadequate state pension and the pittance left of Equitable life pension.
I am from a family of lifelong labour supporters my father being a miner and mother a labour Seaham councillor.
I thought a labour government would look after our welfare but they have also robbed me of the few Northern rock shares that I had.
Where will it all end?
Are they just waiting for us all to die and the problem would go away?
I appeal to you for your help and support.
Yours faithfully,
A constituent in Peterlee, Co. Durham
If you'd like to email John Cummings MP click HERE
Monday, 13 October 2008
Tuesday, 7 October 2008
Rock has repaid more than half its £27bn loan
The Journal is reporting today that the Rock has repaid more than half of the £27bn loan from the taxpayers. Revealed by the Chancellor yesterday, Alistair Darling also defended the decision to take the lender into public ownership earlier this year.
This news comes shortly after it was reported that customers had already deposited £4bn in the bank as of last month as confidence grew.
The repayments have been as a result of redemption of mortgages and are happily ahead of schedule.
The statement comes after Gordon Brown’s so called economic ‘War Cabinet’ named the National Economic Council which brings together senior ministers to co-ordinate the response to the current crisis.
Furthermore, Mr Darling confirmed that the Financial Services Authority is increasing from £35,000 to £50,000 the size of bank deposit the Government will guarantee. This will cover 98% of accounts.
The measure does not compare with blanket guarantees the German, Irish and other EU governments have given to depositors. The measure also did not impress the markets, as the plummeting FTSE showed.
Mr Darling also refused to be drawn on opposition calls for a government-backed recapitalisation of the banks, primly declining to provide a "running commentary" on his deliberations.
This news comes shortly after it was reported that customers had already deposited £4bn in the bank as of last month as confidence grew.
The repayments have been as a result of redemption of mortgages and are happily ahead of schedule.
The statement comes after Gordon Brown’s so called economic ‘War Cabinet’ named the National Economic Council which brings together senior ministers to co-ordinate the response to the current crisis.
Furthermore, Mr Darling confirmed that the Financial Services Authority is increasing from £35,000 to £50,000 the size of bank deposit the Government will guarantee. This will cover 98% of accounts.
The measure does not compare with blanket guarantees the German, Irish and other EU governments have given to depositors. The measure also did not impress the markets, as the plummeting FTSE showed.
Mr Darling also refused to be drawn on opposition calls for a government-backed recapitalisation of the banks, primly declining to provide a "running commentary" on his deliberations.
Thursday, 2 October 2008
The journo everyone loves to hate....
A blog and journo we recommmend for all readers is Robert Preston who is famous for spilling the beans on the Northern Rock story. He is always well informed on the issues, writes almost daily and is well worth regular reading.
Find his blog at http://www.bbc.co.uk/blogs/thereporters/robertpeston/
Find his blog at http://www.bbc.co.uk/blogs/thereporters/robertpeston/
Wednesday, 1 October 2008
Anger as former Northern Rock boss rakes in cash betting on credit crunch - the Sunday Sun article in full
In response to requests, we reproduce here the full article that appeared in the Sunday Sun, Sept 28 2008:
Sep 28 2008 by Michael Kelly, Sunday Sun
A FORMER Northern Rock boss has come under fire after it was revealed her husband made £28m out of the credit crunch.
Nichola Pease was a director of the Newcastle-based bank before it crashed in September last year, leaving more than 2000 workers facing the dole.
Around 150,000 shareholders, including many pensioners, lost around more than £2bn as the Northern Rock went into meltdown.
Ms Pease, who was a non-executive director for eight years, stood down from the Northern Rock in November. She had been paid around £65,000-a-year for her part-time job at the bank. The 47-year-old mum-of-three was already reportedly the 20th richest woman in Britain.
She is the chief executive of J Hambro Capital Management and is married to hedge fund manager Crispin Odey.
The pair, who are believed to be worth around £300m, are nicknamed the “Posh and Becks” of the City of London.
It has since been reported that Odey Asset Management bet on bank shares falling. The foresight helped the company make £64.6m, out of which Mr Odey has paid himself £28m, it has been claimed.
Ms Pease and her husband have declined to discuss the reports.
The couple have done nothing legally wrong but the news has led to an angry response in the North East.
Robin Ashby, spokesman for the Northern Rock Small Shareholders’ Group, said: “I have long been concerned about the performance of the non-executive directors of Northern Rock, prior to the crash, in their role of holding the executive to account on behalf of the shareholders.
“What did they do to earn the fat fees they received? Did they do much except warm chairs? They were supposed to be industry experts. Clearly, Ms Pease has money-making skills.
“It’s a pity they were not more evident in preventing the catastrophic losses suffered by shareholders and employees.”
Labour MP for Durham North Kevan Jones has campaigned on behalf of Northern Rock workers facing redundancy. He said: “Thousands of small shareholders and staff at Northern Rock will be angry at this revelation.
“It seems that the former directors of Northern Rock’s gilded lives continue, while it is the little people who suffer.
“The people I feel sorry for are the members of staff who were encouraged to buy shares, even when others knew the bank was in trouble.
“There is no illegality about what has taken place but these people live in a different, privileged world.”
However, one highly-placed Northern Rock source said: “Nicola Pease had a very high reputation. She was extremely competent and very, very honest. Of all the directors, she can be blamed the least for what happened.”
Sep 28 2008 by Michael Kelly, Sunday Sun
A FORMER Northern Rock boss has come under fire after it was revealed her husband made £28m out of the credit crunch.
Nichola Pease was a director of the Newcastle-based bank before it crashed in September last year, leaving more than 2000 workers facing the dole.
Around 150,000 shareholders, including many pensioners, lost around more than £2bn as the Northern Rock went into meltdown.
Ms Pease, who was a non-executive director for eight years, stood down from the Northern Rock in November. She had been paid around £65,000-a-year for her part-time job at the bank. The 47-year-old mum-of-three was already reportedly the 20th richest woman in Britain.
She is the chief executive of J Hambro Capital Management and is married to hedge fund manager Crispin Odey.
The pair, who are believed to be worth around £300m, are nicknamed the “Posh and Becks” of the City of London.
It has since been reported that Odey Asset Management bet on bank shares falling. The foresight helped the company make £64.6m, out of which Mr Odey has paid himself £28m, it has been claimed.
Ms Pease and her husband have declined to discuss the reports.
The couple have done nothing legally wrong but the news has led to an angry response in the North East.
Robin Ashby, spokesman for the Northern Rock Small Shareholders’ Group, said: “I have long been concerned about the performance of the non-executive directors of Northern Rock, prior to the crash, in their role of holding the executive to account on behalf of the shareholders.
“What did they do to earn the fat fees they received? Did they do much except warm chairs? They were supposed to be industry experts. Clearly, Ms Pease has money-making skills.
“It’s a pity they were not more evident in preventing the catastrophic losses suffered by shareholders and employees.”
Labour MP for Durham North Kevan Jones has campaigned on behalf of Northern Rock workers facing redundancy. He said: “Thousands of small shareholders and staff at Northern Rock will be angry at this revelation.
“It seems that the former directors of Northern Rock’s gilded lives continue, while it is the little people who suffer.
“The people I feel sorry for are the members of staff who were encouraged to buy shares, even when others knew the bank was in trouble.
“There is no illegality about what has taken place but these people live in a different, privileged world.”
However, one highly-placed Northern Rock source said: “Nicola Pease had a very high reputation. She was extremely competent and very, very honest. Of all the directors, she can be blamed the least for what happened.”
The problem with bailouts.....
From the FT:
If you owe the bank $10, it’s your problem. If you owe the bank $10m, it’s the bank’s problem.
If you and a million others owe the bank $10 each, it’s still your problem – but now it’s also the bank’s problem.
If the bank then sells to an investor the $10 you owe, it ought to be the investor’s problem. But if you have a problem repaying the $10 and the bank insured the investor against your problem, then it’s both the investor’s problem and the bank’s problem.
Your problems and your neighbours’ problems and the investor’s problems mean the bank now owes another bank $10bn. That is both banks’ problem. But if banks can’t or won’t pay the $10bn they owe to other banks, it’s very quickly a $700bn systemic problem.
And if the government then owes the banking system $700bn, it’s your problem.
If you owe the bank $10, it’s your problem. If you owe the bank $10m, it’s the bank’s problem.
If you and a million others owe the bank $10 each, it’s still your problem – but now it’s also the bank’s problem.
If the bank then sells to an investor the $10 you owe, it ought to be the investor’s problem. But if you have a problem repaying the $10 and the bank insured the investor against your problem, then it’s both the investor’s problem and the bank’s problem.
Your problems and your neighbours’ problems and the investor’s problems mean the bank now owes another bank $10bn. That is both banks’ problem. But if banks can’t or won’t pay the $10bn they owe to other banks, it’s very quickly a $700bn systemic problem.
And if the government then owes the banking system $700bn, it’s your problem.
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