en.wikipedia.org/wiki/Northern_Rock
Northern Rock joined the stock exchange as a minor bank and was expected to be taken over by one of its larger rivals, but it has remained independent.
edit History Northern Rock Building Society was formed in 1965 as a result of the merger of Northern Counties Permanent Building Society (established in 1850) and Rock Building Society (established in 1865).
demutualise and float on the stock exchange in order to better expand their business. Throughout this period a concern against demutualisation was that the assets of a mutual society was built up by its members throughout its history not just the present members who would benefit, and that demutualisation was a betrayal of the community that the societies were created to serve.
The company is midway through a redevelopment of the Gosforth site, which saw the demolition of the original 1960s tower block during Spring 2006. A new tower block is due to be completed by the end of 2008, to act as the main entrance to the company headquarters. The Gosforth site currently consists of the Kielder and Prudhoe buildings, completed in the early 1990s, behind which lies the distinctive glass-fronted Alnwick building. The main Atrium reception is adjacent to this, opening out onto the recently completed Baker Street, a large covered mall that houses a restaurant, shop and on-site branch. A number of other buildings, all named after North-Eastern castles are joined to Baker Street.
Northern Rock logo used until 2000 Northern Rock logo used until 2000 In the year 2000 Northern Rock introduced a new corporate identity consisting of a magenta square containing the company name. To this day however, some branches still display the old logo. The Northern Rock Foundation also changed its logo in 2003 from the NR 'blocks' inline with the main company, using the same new typeface.
As well as mortgages, the bank also deals with savings accounts, current accounts, loans and insurance. The company also promotes secured loans to its existing mortgage customers.
edit Board of Directors The Chief Executive is Andy Kuipers, who joined the company in 1987. The company is focused on developing its own staff and so, most appointments are made internally.
Adam Applegarth resigned but stayed on in a caretaker role until December 2007. David Baker and Keith Currie left the board but remain employed within the company.
In April 1996, when the Building Society was considering demutualisation, plans were announced by the then chairman, Robert Dickinson, for the creation of the foundation. Since the official launch of the foundation in January 1998, it has steadily grown and expanded its activities. By the end of 2007 190 million had been donated to the foundation, by Northern Rock. Nationalisation will end the covenant requiring Northern Rock to remit a share of profits to the Foundation. Instead, for the next three years the Foundation will receive an annual 15 million payment from Northern Rock, whether it remains publicly-owned or returns to the private sector.
People queuing outside a branch to withdraw their savings due to fallout from the subprime crisis. People queuing outside a branch to withdraw their savings due to fallout from the subprime crisis.
With shares in Northern Rock plummeting by nearly a third, the British Government moved to reassure investors with the bank, with account holders urged not to worry about the bank going bust.
Gloucestershire when two joint account holders barricaded the bank manager in her office after she refused to let them withdraw 1 million from their account.
" What we want to do is to give incentives for people to behave properly, so in judging the interest rate at which we lent to Northern Rock we asked ourselves the question: "At what interest rate would they have to pay in borrowing from us today that would make them regret not having taken out an insurance policy as Countrywide did before the 9th of August?"
If the Bank was to be temporary nationalised, the government would manage the Bank at "arms' length" on a commercial basis, where services for savers and borrowers would not be affected and the company would continue to operate as normal.
For repayment of the Government loans, there was a proposal to create an 'asset pool' at the bank, of a size greater than the loans. The bidder would have issued bonds against this asset pool, with maturities set inline with the repayment.
securitisation vehicle though which mortgages are parcelled up and sold to investors. Under 'substitution clauses' in Granite, investors can call in their loans if maturing mortgages are not replaced with new ones. Should the clauses be triggered, investors could demand their funding back - potentially leaving the Government with an immediate 45bn bill. At the moment, only 25bn of taxpayer's money has actually gone into Northern Rock, through Bank of England loans. The rest of the support is via state guarantees, which the Treasury would prefer are not drawn upon. Granite matures in tranches, with roughly 5bn expected to come up this year and 10bn next. As the Government regains control of the vehicle, it can run it down or sell it off.
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