Latest Losses at Northern Rock

Is a surprise?  Northern Rock today announced losses surpassing £720 million – that is up 24%…

Northern Rock (or The Rock as it is sometimes known) was at the very core of the Beginning of the End…or the End of the Beginning?  In September 2007 they crashed, marking the recession’s slow and steady hold over the UK.   Last year they were fully nationalised by the UK Government after having sought emergency funding.

The company plans to split into two, a move which it believes will be attractive to the private sector.  Will it be attractive to private investors??  It plans to continue lending (albeit less than originally planned) and the repayment of its Government loan is not at the top of the To Do list just yet. 

Northern Rock has become a symbol for the country’s downturn from the boom years, the UK’s version of the Lehmann Brothers in the USA.  As unemployment shows no sign of slowing the problems the already-suffering company faces are in no way over.

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