|Northern Rock savers waiting to take cash out in 2007|
Robert Peston of BBC fame has been talking about all this, and one suspects he's getting a bit weary by it. Having broken the original story of the bank going bust, he probably no longer feels he can dine out on this tale of woe any longer. He did, though, give the interesting point that savers currently attracted to Northern Rock may be there because it is a safe house at taxpayers expense. Put it in the private sector and, well.... he didn't elaborate, but the possibility is some may leave for pastures new.
The Daily Telegraph reports that "Although the sale of the so-called "good bank" part of Northern Rock is likely to generate a loss, this will be offset in the longer term by the repayment of tens of billions of pounds of state aid loans held in the "bad bank", now known as Northern Rock Asset Management". I thought all the bad stuff was toxic debt brought over in some grand recycling scheme from American sub-prime lenders. If the money was completely fake in the first place, how come these "asset managers" can turn the financial toxins into good money?
Maybe George Osborne can illuminate us all on that one?