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23/02/2009
Northern Rock To Begin Mortgage Lending Again
Nationalised bank Northern Rock is to make £14 billion available for new mortgages by 2011, it has been announced.
The move follows Chancellor Alistair Darling's decision last month to reverse the wind-down of its loans, and is part of wider plans to restructure the group.
It is understood the Newcastle-based bank is to take on about £5bn in new mortgages this year and up to £9bn from 2010.
The Chancellor said the bank is already well ahead of schedule on its government-borrowed money - with £9bn outstanding at the end of December compared to £27bn a year earlier.
The plan, which is due to be finalised this week, will see the taxpayer underwrite the so-called "toxic" assets held by banks in an effort to get the flow of credit moving again.
Ministers are also expected to move towards a policy of "quantitative easing" - or printing money - providing tens of billions of pounds to buy bonds and gilts from banks.
"It's repaid about £18bn of the loan the government made, and I said in January this year that because of the problems the mortgage faced, instead of looking to wind down its business, it would be better for Northern Rock to maintain lending," Mr Darling said.
Northern Rock collapsed in 2007 after a run on savers' deposits when it emerged it had sought government help.
When the bank was nationalised last year it pledged to reduce the amount of state aid it would borrow.
However, last month the bank was given more time to repay the government loan as part of a scheme to boost lending.
(JM/BMcC)
The move follows Chancellor Alistair Darling's decision last month to reverse the wind-down of its loans, and is part of wider plans to restructure the group.
It is understood the Newcastle-based bank is to take on about £5bn in new mortgages this year and up to £9bn from 2010.
The Chancellor said the bank is already well ahead of schedule on its government-borrowed money - with £9bn outstanding at the end of December compared to £27bn a year earlier.
The plan, which is due to be finalised this week, will see the taxpayer underwrite the so-called "toxic" assets held by banks in an effort to get the flow of credit moving again.
Ministers are also expected to move towards a policy of "quantitative easing" - or printing money - providing tens of billions of pounds to buy bonds and gilts from banks.
"It's repaid about £18bn of the loan the government made, and I said in January this year that because of the problems the mortgage faced, instead of looking to wind down its business, it would be better for Northern Rock to maintain lending," Mr Darling said.
Northern Rock collapsed in 2007 after a run on savers' deposits when it emerged it had sought government help.
When the bank was nationalised last year it pledged to reduce the amount of state aid it would borrow.
However, last month the bank was given more time to repay the government loan as part of a scheme to boost lending.
(JM/BMcC)
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03 August 2010
Northern Rock Steadfast In Recovery
The boss of a once beleaguered UK bank is "encouraged" by news that nationalised Northern Rock's - a so-called 'bad bank' - has returned to profit following heavy losses last year in the wake of a bail-out by the taxpayer in 2008. Chief Executive Gary Hoffman said the Northern Rock 'AM' results were 'encouraging'.
Northern Rock Steadfast In Recovery
The boss of a once beleaguered UK bank is "encouraged" by news that nationalised Northern Rock's - a so-called 'bad bank' - has returned to profit following heavy losses last year in the wake of a bail-out by the taxpayer in 2008. Chief Executive Gary Hoffman said the Northern Rock 'AM' results were 'encouraging'.
06 February 2008
Jobs Threat At Troubled Northern Rock
Virgin has reversed its promise not to cut jobs at Northern Rock if it successful in its takeover bid of the troubled lender. The move has alarmed unions who had originally vowed to fight compulsory redundancies. Virgin boss, Sir Richard Branson had previously said that he was confident there would be no redundancies under a Virgin-backed rescue.
Jobs Threat At Troubled Northern Rock
Virgin has reversed its promise not to cut jobs at Northern Rock if it successful in its takeover bid of the troubled lender. The move has alarmed unions who had originally vowed to fight compulsory redundancies. Virgin boss, Sir Richard Branson had previously said that he was confident there would be no redundancies under a Virgin-backed rescue.
01 May 2008
Job Cuts Planned At Troubled Bank?
Troubled lender Northern Rock plans to axe 2,000 jobs within three years, it has been reported. The bank has been struggling since last year due to unsettling financial conditions sparked off by the global credit crunch. Long queues formed outside the bank last September as savers tried to withdraw their savings.
Job Cuts Planned At Troubled Bank?
Troubled lender Northern Rock plans to axe 2,000 jobs within three years, it has been reported. The bank has been struggling since last year due to unsettling financial conditions sparked off by the global credit crunch. Long queues formed outside the bank last September as savers tried to withdraw their savings.
18 March 2008
Northern Rock Jobs Under Threat
Troubled bank Northern Rock has said that it will cut around 2,000 jobs. The cuts have been anticipated as part of the chairman Ron Sandler's restructuring plans for the nationalised mortgage lender. Northern Rock currently owes the Bank of England about £25 billion after it bailed out the company last year.
Northern Rock Jobs Under Threat
Troubled bank Northern Rock has said that it will cut around 2,000 jobs. The cuts have been anticipated as part of the chairman Ron Sandler's restructuring plans for the nationalised mortgage lender. Northern Rock currently owes the Bank of England about £25 billion after it bailed out the company last year.
14 September 2007
Northern Rock Applies For BoE Funding
One of the UK's largest mortgage lenders, Northern Rock, has applied for emergency funding from the Bank of England. The mortgage lender turned to the BoE as the "lender of last resort" after it struggled to raise money to fund its lending from commercial markets.
Northern Rock Applies For BoE Funding
One of the UK's largest mortgage lenders, Northern Rock, has applied for emergency funding from the Bank of England. The mortgage lender turned to the BoE as the "lender of last resort" after it struggled to raise money to fund its lending from commercial markets.
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