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Deadline for Northern Rock bids today

Virgin, Olivant and Northern Rock’s management are expected to submit formal bids for the collapsed bank to meet today’s deadline.

Northern Rock borrowed £25bn from the Bank of England last year after its reliance on the wholesale money markets put it into financial difficulties when the credit crunch hit.

With a private buyer, the Government wants to turn the £25bn into bonds which would be sold to investors.

But Liberal Democrat shadow chancellor Vince Cable has stressed that the Government should not allow its desire for a speedy private sale to override the high risk to taxpayers.

He says: “The chancellor must ensure that any successful bid gets the best deal for the taxpayer. Taxpayers now face years of supporting Northern Rock, while any new private owner makes an absolute killing.

“It is essential that ministers are not given the weakest of Northern Rock’s assets as security, such as the £8bn of unsecured loans, and that the Treasury has full recourse against the bank. New private buyers must assume legal responsibility for all of the obligations of the bank, specifically taxpayers’ loans and guarantees.”


JO Hambro re-opens European funds

JO Hambro Capital Management has re-opened its offshore £474m continental European and £178m European funds after re-evaluating the capacity levels on the range.

Adviser Fund Index – Diverse solutions

Some investors will be looking to inject more caution into their portfolios as a result of market volatility and dramatic share price falls in the last few weeks.Equity markets have suffered across the board amid fears of a US recession and a re-examination of asset allocation is a natural response.Figures from Financial Express show volatility […]

Product matters

It is a life product, so it does have to cope with cumbersome pension rules. It combines an offshore bond of at least 10 years, with a 20-year purchased life annuity, so it is pretty tax-efficient.The contract’s real difference is allocation of birthday units, which are paid from the redistribution of investment funds held by […]


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