NR current problems are forced on them by events outside their control, not really bad management - namely problems with sub-prime lending in the US and US backers now withdrawing from ALL sub prime markets - their normal backers (US based), would not buy the NR 'mortgage book' this time round - this was not totally unexpected and plans were put in place last month for the Bank Of England to bail them out. The ‘Mortgage Book’ is still there and earning them an income albeit over a much longer period than expected or anticipated.
The media circus that followed; blowing it all out of proportion, and people panicking withdrawing savings, silly move, taking money out. it's the savers that will lose in the end.
The current crisis has nothing to do with the stance NR take against IVA’s or DMP’s, it’s all to do with the way they fund their short term lending requirements. The only difference between NR and another other purely prime or sub prime lender is that they (NR) has a presence in the market as a bank.
NR are very far from insolvent – although, this panic withdrawing may end up harming NR current cahflow shortfalls further and force their shares down even more, leading to attempted buy outs by other institutions.
If there are any lessons to be learned from all this it must be the way Banks, the FSA and the Bank Of England reports this sort of thing to the general public.
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