Northern Rock announces £1.4bn loss as it makes return to mortgage market with 90% deals
State-run bank in £14bn return to mortgage market
Darling insists its lending will be 'sensible'
Government prepare new £500bn bailout plan
Northern Rock today announced it faces a £1.4billion loss for 2008 as it returned to the mortgage market with loans of up to 90 per cent.
Hours after a dramatic U-turn allowing the state-owned bank to resume lending on a massive scale, it revealed it was facing huge losses for last year.
The £1.4billion figure is almost 10 times its £167.6million loss in 2007 when it was crippled by the freeze in credit markets and the UK's first run on a bank for 140 years.
It is driven by a £900million bad debt charge on its loans, caused by the deepening recession.
Oh Dear, Doesn't look like it was a great business model after all!
State-run bank in £14bn return to mortgage market
Darling insists its lending will be 'sensible'
Government prepare new £500bn bailout plan
Northern Rock today announced it faces a £1.4billion loss for 2008 as it returned to the mortgage market with loans of up to 90 per cent.
Hours after a dramatic U-turn allowing the state-owned bank to resume lending on a massive scale, it revealed it was facing huge losses for last year.
The £1.4billion figure is almost 10 times its £167.6million loss in 2007 when it was crippled by the freeze in credit markets and the UK's first run on a bank for 140 years.
It is driven by a £900million bad debt charge on its loans, caused by the deepening recession.
Oh Dear, Doesn't look like it was a great business model after all!
Where?
Comment