View more on these topics

Northern Rock: Adviser reaction

Skipton Financial Services managing director Simon Holt wonders how the Government will support two financial organizations – Northern Rock and National Savings & Investments.

He says: “We have two institutions that are now backed by the Government – how will they compete? How will the justify different rates, for instance?”

Holt says from the savers’ point of view it has got to be a good thing to be nationalised as they have said their first priority is the security of the savers’ deposits.

But he says this has to be a worrying time for shareholders, who will be looking for them to create real value.

Holt says: “Mr Darling has said the bank will be put back into private hands but we have no way of knowing when that might be.”

Positive Solutions chief executive Jim Reeve says: “It has taken so long and so many different options to try to manage Northern Rock – this is a very unenviable position for everybody.

“There is a clear concern by the Chancellor and the Government that maybe Virgin could cause too much upset and not present enough commitment to the repayment of public debt. It seems they do not want to go to private ownership with some people making a killing off the back of public money. Maybe we will see the Virgin offer amended though.”

The chief of the Newcastle-based firm says the staff losses are always the saddest part of a situation like this.

He says: “From the North East perspective, there are so many jobs here that will now be at risk. I feel sorry for the staff.”

Recommended

Brokers see bleak future for nationalised Rock

Mortgage commentators have questioned Northern Rock’s future in the mortgage market following the Government’s decision to nationalise the stricken lender.The Government said on Sunday that it will introduce emergency legislation to nationalise Northern Rock after it said two private takeover bids failed to offer the taxpayer sufficient value for money.By opting for nationalisation, the Government […]

Examples of TCF shortfalls will be published

The FSA will increase its treating customers fairly push this year, focusing on monitoring industry progress and publishing examples of firms’ TCF shortfalls.Firms should undertake significant work to ensure they build on the progress made so far and pay particular attention to TCF when market conditions are more challenging.The regulator has highlighted several examples of […]

The cutting edge

Falling interest rates have increased the appeal of income-producing products while falling stockmarkets have boosted the attractions of downside protection. This combination has led to a re-emergence in the popularity of structured products but overhanging this trend is the spectre of the late 1990s and precipice bonds.

Converting pension savings to a retirement income…

Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com