Bank of England to prop up Northern Rock

Discussion in 'Wall St. News' started by Cdntrader, Sep 13, 2007.

  1. abc1

    abc1

    British fin. system more exposed than the US ? Do you have evidence for this ?

    Sure LIBOR went upwards but I saw this as banks protecting themselves amid the uncertainty. Thoughts ?

    abc1
     
    #41     Sep 19, 2007
  2. zer0

    zer0

    Because the british economy is only about finance & housing. It is Wall Street redux. The BoE have less power than the ECB,FED and lost a big chunk of its credibility. If the credit crunch situation goes out of control, the City will suffer more than Wall Street.

    Btw, dhpar, I hope you will manage to exit your trade, NRK still looking ugly
    "Even one of the London market’s best days of the year could not prevent a further heavy fall for Northern Rock.

    Shares in the troubled mortgage lender dropped a further 16 per cent to 257p, taking losses since Friday to 60 per cent, as rumours swirled in the City that Lloyds TSB and HBOS had made low-ball offers. The rumoured HBOS approach was said to have been pitched at just 100p.

    Traders said Northern Rock shares had also been pressured by rumours of write-downs in its £8bn ‘Available for Sale’ portfolio"
    http://www.ft.com/cms/s/0/c90bb3f6-6682-11dc-a218-0000779fd2ac.html
     
    #42     Sep 20, 2007