Sunday, February 17, 2008

Northern Rock gets nationalized

Sir Richard Branson's bid for Northern Rock was nowhere near what was needed, and the UK government nationalized the bank. Now it looks like Northern Rock shareholders will walk away with the same thing shareholders got when Railtrack Plc went the same route. Nothing. And taxpayers will be guaranteeing Northern Rock's $200 billion of mortgages.

Even Goldman Sachs advice couldn't prevent the government from biting the bullet and nationalizing the bank. And now, the naked shorts, whom the Government tried prodding into covering shares; will now be able to cover in pence instead of in pounds.

And the mortgage fiasco worldwide delivers another beating.

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