If Brown and Darling want to destroy the last vestiges of confidence
in the British economy they are going the right way about it. As
you can see from the figures below the banks are lending at an
increased volume where they think it is prudent.
What do these idiots want them to do, lend imprudently and go bust?
That’s what Brown has been doing for 11 years and now WE are the ones
that are bust.
Banks are not a social service, they have to make a profit to exist.
Brown doesn’t understand this even on a day when a bank he does
control, Northern Rock, needs yet more money to continue. [ SEE
BELOW] The is incompetence on a gargantuan scale.
The trouble is that commonsense is foreign to the governmenmt and -
I’m sorry to say, to the irresponsible bits of the media who are
whipping up an anti-bank hysteria - the Daily Mail is the worst by
far, but the left-leaning ‘serious’ press is not far behind. !
The banks need their profits to continue in business and to pay
dividends to shareholders who include pension funds in which many
Mail readers have an interest.
Mass hysteria and mob rule are despicable and dangerous to all of
us. Someone should tell Paul Dacre, the Mail’s Editor in chief.
xxxxxxxxxxxxxx cs
========================
TELEGRAPH 21.11.08
Alistair Darling may force banks to cut interest rates to small
businesses
Th Chancellor of Exchequer may threaten to introduce new legislation
to force banks to loan money to small businesses at competitive rates
of interest.
By Robert Winnett, Deputy Political Editor
Treasury officials are reported to be considering draconian new laws
which could limit the interest rate charged by banks.
Small businesses have complained that they are facing sharp increases
in the cost of loans following the global credit crisis.
Gordon Brown and Mr Darling yesterday met with small business
representatives.
In next Monday's pre-Budget report, the Government is expected to
introduce a new scheme to underwrite small business loans made by
banks. Ministers will also put intense pressure on the banks in which
the Government is buying a stake to lend at competitive rates again.
[“competitive rates” is, of course, a rate which is competitive -cs]
However, if these moves fail to kickstart the lending market, Mr
Darling may introduce the "nuclear option" of new laws.
A source said: "Alistair Darling is increasingly exasperated by the
banks' assurances that they are helping small businesses when they
obviously are not. [ Not True! SEE below! -cs]
"There are too many instances where the banks have failed small
businesses, even those with perfectly good track records.
"Banks have got to understand they have to treat their customers
fairly. We are not at the point of introducing regulations but he is
not averse to going down that route."
=-=-=-=-=-=-=-=-=-=-=-=- AND ---->
Brown vows to get banks lending
Gordon Brown has vowed to get the banks lending to small businesses
again in the face of criticism from David Cameron his
recapitalisation plan is failing.
===========================
BRITISH BANKERS’ ASSOCIATION -BBA website 21.11.08
Small business lending up in the third quarter
Lending to small businesses grew by just under £1bn in the third
quarter of 2008 new figures out today reveal. This growth was
marginally lower than in the second quarter and in the corresponding
quarter of 2007.
Over the twelve months to September:
• Loans grew 10% to £44.8bn, while overdraft borrowing stood at
£9.3bn, some 4% higher than a year earlier.
• Total deposits totalled £55.0bn, 3% up on the year.
• New banking relationships have been established for 538,300 small
businesses.
BBA statistics director, David Dooks, said:
“The effects of the deteriorating economy are becoming more
apparent. Slowing growth in deposits shows that small businesses are
increasingly funding their activities out of cashflow, but a rise in
lending in the third quarter, consistent with growth in the previous
quarter and the corresponding quarter of 2007, shows banks continuing
to make finance available.
===================
in the British economy they are going the right way about it. As
you can see from the figures below the banks are lending at an
increased volume where they think it is prudent.
What do these idiots want them to do, lend imprudently and go bust?
That’s what Brown has been doing for 11 years and now WE are the ones
that are bust.
Banks are not a social service, they have to make a profit to exist.
Brown doesn’t understand this even on a day when a bank he does
control, Northern Rock, needs yet more money to continue. [ SEE
BELOW] The is incompetence on a gargantuan scale.
The trouble is that commonsense is foreign to the governmenmt and -
I’m sorry to say, to the irresponsible bits of the media who are
whipping up an anti-bank hysteria - the Daily Mail is the worst by
far, but the left-leaning ‘serious’ press is not far behind. !
The banks need their profits to continue in business and to pay
dividends to shareholders who include pension funds in which many
Mail readers have an interest.
Mass hysteria and mob rule are despicable and dangerous to all of
us. Someone should tell Paul Dacre, the Mail’s Editor in chief.
xxxxxxxxxxxxxx cs
========================
TELEGRAPH 21.11.08
Alistair Darling may force banks to cut interest rates to small
businesses
Th Chancellor of Exchequer may threaten to introduce new legislation
to force banks to loan money to small businesses at competitive rates
of interest.
By Robert Winnett, Deputy Political Editor
Treasury officials are reported to be considering draconian new laws
which could limit the interest rate charged by banks.
Small businesses have complained that they are facing sharp increases
in the cost of loans following the global credit crisis.
Gordon Brown and Mr Darling yesterday met with small business
representatives.
In next Monday's pre-Budget report, the Government is expected to
introduce a new scheme to underwrite small business loans made by
banks. Ministers will also put intense pressure on the banks in which
the Government is buying a stake to lend at competitive rates again.
[“competitive rates” is, of course, a rate which is competitive -cs]
However, if these moves fail to kickstart the lending market, Mr
Darling may introduce the "nuclear option" of new laws.
A source said: "Alistair Darling is increasingly exasperated by the
banks' assurances that they are helping small businesses when they
obviously are not. [ Not True! SEE below! -cs]
"There are too many instances where the banks have failed small
businesses, even those with perfectly good track records.
"Banks have got to understand they have to treat their customers
fairly. We are not at the point of introducing regulations but he is
not averse to going down that route."
=-=-=-=-=-=-=-=-=-=-=-=- AND ---->
Brown vows to get banks lending
Gordon Brown has vowed to get the banks lending to small businesses
again in the face of criticism from David Cameron his
recapitalisation plan is failing.
===========================
BRITISH BANKERS’ ASSOCIATION -BBA website 21.11.08
Small business lending up in the third quarter
Lending to small businesses grew by just under £1bn in the third
quarter of 2008 new figures out today reveal. This growth was
marginally lower than in the second quarter and in the corresponding
quarter of 2007.
Over the twelve months to September:
• Loans grew 10% to £44.8bn, while overdraft borrowing stood at
£9.3bn, some 4% higher than a year earlier.
• Total deposits totalled £55.0bn, 3% up on the year.
• New banking relationships have been established for 538,300 small
businesses.
BBA statistics director, David Dooks, said:
“The effects of the deteriorating economy are becoming more
apparent. Slowing growth in deposits shows that small businesses are
increasingly funding their activities out of cashflow, but a rise in
lending in the third quarter, consistent with growth in the previous
quarter and the corresponding quarter of 2007, shows banks continuing
to make finance available.
===================
AND AS A POSTSCRIPT TO SHOW THE TOTAL
INCOMPETENCE OF BROWN-DARLING - - - -
TELEGRAPH 21.11.08
Another £3bn at risk in Northern Rock
Another £3bn of taxpayer money has been put at risk in Northern Rock
after the nationalised lender's off-balance sheet funding vehicle,
Granite, was put in to run-off yesterday.
By Philip Aldrick
Northern Rock triggered the £37bn vehicle's wind-up by breaching
rules on the size of cushion provided by the nationalised bank to
Granite's institutional bondholders. By declining to transfer any
more mortgages into Granite, the lender reduced its collateral below
the contractual 8.2pc minimum.
The "non-asset trigger event" means that roughly £3bn of taxpayer
funds have been seized by Granite and will only be released once all
the bondholders are paid back. One senior banker estimated that, at
the current rate of repayment, the Government will not be able to
recover the money until 2015 at the earliest.
How much is recovered depends on the quality of Granite's mortgage
book. The taxpayer will now absorb the first £3bn of any losses in
the portfolio, which is rapidly deteriorating in value. Northern Rock
revealed yesterday that more than 2pc of the mortgages in Granite are
in arrears, compared with the group's 1.87pc in September and 1.18pc
in June. If bad debts remain at the current level, the taxpayer will
lose about £750m.
At the same time, Northern Rock will forfeit any income from
customers' monthly mortgage payments – adding to the bank's woes
after a £585m first half loss. It was receiving £15.5m a month, but
the money will now be diverted into a "reserve fund" to add to the
£3bn taxpayer buffer tied up in Granite.
The Government has always insisted that Granite was not part of the
Northern Rock nationalisation, when the bank's £50bn of on-balance
sheet loans were transferred to the state. Until now, it has been
unclear how much exposure the taxpayer bore.
Before triggering the wind-up, losses would have been spread equally
between all Granite's investors. Now it is in run-off, though,
bondholders are paid out in order of heirarchy, with those holding
AAA-rated bonds at the top of the so-called "waterfall" and the
taxpayer at the bottom.
The Government has been aggressively reducing Northern Rock's
exposure to Granite, which was £13bn at its peak before
nationalisation in April last year. Coincidentally, the remaining
£3bn exposure is exactly the same as the amount of extra capital the
Government put into the bank in August as a buffer against rising bad
debts.
Senior bankers expect the Government to inject another £3bn before
the end of the year. How much the taxpayer recovers will depend on
the price the bank fetches when it is sold back to the private
sector. Following the Granite default, it might be harder to find a
buyer, though.
Ben Hayward, a partner at TwentyFour Asset Management, said: "The
timing of the breach, albeit not the end result, may surprise and
alienate some market participants, making future funding harder and
potentially decreasing Northern Rock's value in a future sale."
Northern Rock spokesman Brian Giles said that adding new mortgages to
the trust "was not in the best interest of taxpayers given one of our
prime objectives under the current business plan is the repayment of
the Government loan". With bondholders now keen to get their money
back, there is a chance that Granite may also be more aggressive on
repossessions.
INCOMPETENCE OF BROWN-DARLING - - - -
TELEGRAPH 21.11.08
Another £3bn at risk in Northern Rock
Another £3bn of taxpayer money has been put at risk in Northern Rock
after the nationalised lender's off-balance sheet funding vehicle,
Granite, was put in to run-off yesterday.
By Philip Aldrick
Northern Rock triggered the £37bn vehicle's wind-up by breaching
rules on the size of cushion provided by the nationalised bank to
Granite's institutional bondholders. By declining to transfer any
more mortgages into Granite, the lender reduced its collateral below
the contractual 8.2pc minimum.
The "non-asset trigger event" means that roughly £3bn of taxpayer
funds have been seized by Granite and will only be released once all
the bondholders are paid back. One senior banker estimated that, at
the current rate of repayment, the Government will not be able to
recover the money until 2015 at the earliest.
How much is recovered depends on the quality of Granite's mortgage
book. The taxpayer will now absorb the first £3bn of any losses in
the portfolio, which is rapidly deteriorating in value. Northern Rock
revealed yesterday that more than 2pc of the mortgages in Granite are
in arrears, compared with the group's 1.87pc in September and 1.18pc
in June. If bad debts remain at the current level, the taxpayer will
lose about £750m.
At the same time, Northern Rock will forfeit any income from
customers' monthly mortgage payments – adding to the bank's woes
after a £585m first half loss. It was receiving £15.5m a month, but
the money will now be diverted into a "reserve fund" to add to the
£3bn taxpayer buffer tied up in Granite.
The Government has always insisted that Granite was not part of the
Northern Rock nationalisation, when the bank's £50bn of on-balance
sheet loans were transferred to the state. Until now, it has been
unclear how much exposure the taxpayer bore.
Before triggering the wind-up, losses would have been spread equally
between all Granite's investors. Now it is in run-off, though,
bondholders are paid out in order of heirarchy, with those holding
AAA-rated bonds at the top of the so-called "waterfall" and the
taxpayer at the bottom.
The Government has been aggressively reducing Northern Rock's
exposure to Granite, which was £13bn at its peak before
nationalisation in April last year. Coincidentally, the remaining
£3bn exposure is exactly the same as the amount of extra capital the
Government put into the bank in August as a buffer against rising bad
debts.
Senior bankers expect the Government to inject another £3bn before
the end of the year. How much the taxpayer recovers will depend on
the price the bank fetches when it is sold back to the private
sector. Following the Granite default, it might be harder to find a
buyer, though.
Ben Hayward, a partner at TwentyFour Asset Management, said: "The
timing of the breach, albeit not the end result, may surprise and
alienate some market participants, making future funding harder and
potentially decreasing Northern Rock's value in a future sale."
Northern Rock spokesman Brian Giles said that adding new mortgages to
the trust "was not in the best interest of taxpayers given one of our
prime objectives under the current business plan is the repayment of
the Government loan". With bondholders now keen to get their money
back, there is a chance that Granite may also be more aggressive on
repossessions.
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