Northern Rock Back In The Subprime Business

Maybe the Brits are crazier than we are.  Or something.

This is unfathomable.

How about this little “gem” from Northern Rock “director” Andy Tate:

“Our new products, which will be offered within our prudent risk appetite and only to customers with good affordability, should appeal to those who have lower deposits and first time buyers,” Northern Rock director Andy Tate said in a statement.

Northern Rock was nationalised three years ago after becoming the first major bank in more than 150 years to suffer a bank run. Aggressive lending practices, including mortgages of up to 125 percent of property value, nearly caused the bank’s collapse in 2007.


I love how banksters refer to made up money as a “product”.

“Prudent risk appetite”.  For a banker this is an oxymoron, isn’t it?  How can a mortgage loan at 90% LTV (loan to value) in a falling real estate market be “prudent” by an sane estimation?

Andy Tate.  That sounds more like the name of a used car salesman than a banker.

At least the article mentions that Northern Rock had the first UK bank run in 150 years, although the author’s state that the bank “nearly” collapsed.  The bank was nationalized.  How is that not a collapse?

Apparently they have remembered everything and learned nothing across the pond.



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