I see that the Treasury is having trouble (which it of course denies) in finding an independent valuer to assess compensation payments due to Northern Rock shareholders.
Unsurprisingly no one wants to pick up the poisoned chalice, as whoever does will be liable to be sued by disgruntled shareholders who still labour under the illusion that Northern Wreck has value.
Wouldn't the Treasury save itself a lot of heartache by simply allowing the shares to trade openly on the market, as I recommended in February, thus providing a real time and open valuation of the company?
Today, by the way, it was reported that The Wreck is looking to hire more staff to work in its debt division; a clear sign that its debts are going bad, and that the value of its mortgage book may need to be revised downwards.
Let me save everyone the time and trouble of trying to find a valuer, prepared to stick his neck out.
The value of Northern Wreck is zero (as I stated in February).
Problem solved!
So what do you say the value is of HBOS, Barclays, Lloyds TSB, Bradford and Bingley and Alliance and Leicester? Every bank has had support from the government, they are entitled to support from the government as the last resort. The government made millions from interest from northern rock before nationalisation and is set to make billions by stealing the assets which belonged to the former shareholders and paying little compensation. As far as the bad debts are concerned they're bad because they have been shown to look bad, in the current climate every financial institute has more debts than ever previously anyway. Northern rock had a bad business model but the government made no efforts to help the damage but maximised it so they could steal the company and sell it off at a profit, why was it not sold to virgin or olivant? there were two good offers on the table, the government charges more interest when it is used as the last resort so this better value for taxpayers rubbish is a lie. who's to blame? NuLieBor.
ReplyDeleteLet the amrket determine the value of Northern Wreck and allow the shares to trade again.
ReplyDelete