• The post you are reporting:
   
  The big losses with Northern Rock are likely to continue. The loss figure was announced this morning...I didnt take a note of it but it was around £270,000,000 and all paid for now by the humble taxpayer. It looks more and more likely that these losses will continue as this bank had a different philosophy to the others to a degree..ie they were huge on mortgages. The mortgages were of the high risk variety too, in that they loaned money to almost anyone who walked through the door.
  
  They sold as many mortgages as possible, that seems to have been their only real commercial strategy. Having people with lots of mortgages on your books is fine economics you might say...but..only if all the mortages are paid back.
  
  Where Northern Rock went askew was they loaned to almost everybody including those who could not afford to pay them back...particularly if times got tough...and times are tough.

Report Post

Your Name

Reason