Tag: bad bank

Northern Rock losses narrow

Northern Rock losses narrow

Nationalised lender Northern Rock Plc has today unveiled its results for the half-year. The crisis-torn bank, which was the first victim of the credit crunch, said pre-tax profits for the six months to 30 June totalled £68.5 million, against a loss of £142.6 million in the same period a year ago. However, lending was lower […]

August 3, 2011 More
Chancellor to announce Northern Rock sale

Chancellor to announce Northern Rock sale

In his Mansion House speech later this evening, Chancellor George Osborne is to announce plans to sell off state-owned Northern Rock. The crisis-torn bank, which collapsed on the eve of the credit crisis, is expected to be auctioned off and will raise around £1 billion. The Chancellor will say he hopes to find a buyer […]

June 15, 2011 More
Northern Rock bad bank returns to profit

Northern Rock bad bank returns to profit

Northern Rock Asset Management (NRAM), the so-called bad bank, returned to profit in 2010, it was reported today. The crisis-torn bank, which was the first victim of the credit crunch, said pre-tax profits for the 2010 year were £200.1 million, against a £166.5 million loss in 2009. At the start of 2010, Northern Rock was […]

April 1, 2011 More
Northern Rock to axe 680 jobs

Northern Rock to axe 680 jobs

Crisis-torn Northern Rock has today announced it will reduce headcount by a further 680 as part of another restructure. According to the lender, which was nationalised in February 2008, the job losses are necessary as part of a cost-cutting exercise and would affect employees “at all grades across the company”. Less than 2,000 people will […]

March 28, 2011 More
Northern Rock reports £232m loss

Northern Rock reports £232m loss

Crisis-torn Northern Rock has today unveiled an underlying loss of £232.4 million for the 2010 year for its so-called “good“ bank. Despite the loss, the Newcastle-based bank will pay more than £13 million in bonuses to its 4,000-strong workforce. The bonus comes despite executive chairman Ron Sandler describing the losses as “disappointing”. He comments: “2010 […]

March 9, 2011 More
Northern Rock’s bad bank back in profit

Northern Rock’s bad bank back in profit

Northern Rock Asset Management (NRAM), the so-called bad bank, has today reported it has returned to profit. The crisis-torn bank, which was the first victim of the credit crunch, said pre-tax profit for the first six months to the end of June were £349.7 million, compared with a loss of £724.2 million a year earlier. […]

August 3, 2010 More
Northern Rock’s Guernsey operation to close in September

Northern Rock’s Guernsey operation to close in September

Nationalised Northern Rock has today announced it is to close its banking operation in Guernsey on 2 September. The closure of Guernsey‘s activities, which come after a review of offshore operations, is the latest step in the bank’s turnaround plan. Its Guernsey operation was launched in February 1996 and it currently has some 6,000 customers, […]

June 2, 2010 More
Northern Rock savers lose 100% guarantee

Northern Rock savers lose 100% guarantee

Savers with Northern Rock have today lost the 100% guarantee on their cash. The move, which was announced back in February, means the crisis-torn bank is back in line with its rivals but savers will still benefit from the £50,000 guarantee to all savers under the Financial Services Compensation Scheme (FSCS). The 100% guarantee was […]

May 24, 2010 More
Northern Rock sees losses narrow

Northern Rock sees losses narrow

State-owned bank Northern Rock has today announced losses for the 2009 year fell to £258 million, compared with £1.36 billion in the previous year. Despite the loss, the Newcastle-based bank said it is awarding staff £14.9m in bonuses but Gary Hoffman, the chief executive of Northern Rock, is waiving his payout. Northern Rock said Mr […]

March 10, 2010 More
Richard Pym to chair Northern Rock ‘bad bank’

Richard Pym to chair Northern Rock ‘bad bank’

Richard Pym, the chairman who was appointed to stabilise Bradford & Bingley last year, is to oversee Northern Rock’s ‘bad bank’ operations. It was announced earlier this month that nationalised Northern Rock would be split into two, after receiving the necessary approval from the European Union (EU). New Years Day is the date that has […]

December 15, 2009 More
Date set for Northern Rock split

Date set for Northern Rock split

It was recently confirmed that crisis-torn Northern Rock would be split into two, after receiving the necessary approval from the European Union (EU). 1 January 2010 is the date that has been agreed for the Rock to be split into two divisions – a “good bank” of profitable assets and “bad bank” of toxic debts. The […]

December 8, 2009 More
EU set to approve Northern Rock split

EU set to approve Northern Rock split

Crisis-torn Northern Rock is to be split into two, after receiving the necessary approval from the European Union (EU). Northern Rock collapsed at the onset of the credit crunch in autumn 2007 after savers staged a nationwide run on the bank. It was then nationalised in February 2008. The plan is for bank to be […]

October 28, 2009 More
B&B mulling over split into good bank / bad bank

B&B mulling over split into good bank / bad bank

Nationalised Bradford & Bingley (B&B) is reportedly considering splitting itself into two in order to raise money to repay its £18.4 billion loan from the Financial Services Compensation Scheme (FSCS). The troubled buy-to-let lender was nationalised over a year ago to prevent it from collapse which led to Spanish bank, Santander, acquiring B&B’s £20 billion […]

October 26, 2009 More
BSA against Northern Rock split

BSA against Northern Rock split

The Government announced earlier this year it was planning to split nationalised Northern Rock into two divisions – a deposit bank and a mortgage platform. However, the proposals have met with criticism from the Building Societies Association (BSA) saying that the split would put building societies at a big disadvantage. Northern Rock collapsed at the […]

Government plans to sell Northern Rock

Government plans to sell Northern Rock

It has been reported by The Sunday Times that the Government is planning to sell crisis-torn Northern Rock by the end of the year. Under a plan to retrieve some the hundreds of billions of pounds injected into the banking sector, the Government is preparing to divide the nationalised lender into two: one good and […]

Ireland’s emergency budget unveiled

Ireland’s emergency budget unveiled

Ireland’s Government has now unveiled details of its second budget as the country’s budget deficit spirals out of control. Finance Minister, Brian Lenihan, said the country faces a “very grave national crisis” after the country’s deficit nears 13% of GDP – quadruple the level allowed by the European Union. The emergency budget includes a hefty […]

RBS to sell off £300bn worth of assets

RBS to sell off £300bn worth of assets

Royal Bank of Scotland (RBS) is set to embark on a major restructure which will see it sell off at least 20% of its business worth around £300 billion. The bank is due to announce its full-year results on Thursday and is expected to report a £28 billion loss – setting a record in UK […]