The cost of the Northern Rock crisis has reached the equivalent of £3,500 for every taxpayer as experts warned that the nationalisation rescue of the bank was bound to fail.
Well, yes, makes a nice scare story. That\’s take the entire £110 billion at risk and divide by the number of taxpayers.
But that statement is in fact assuming that every single one of the Crock mortgages stops paying on them, there\’s no value at all in any of the properties they\’re secured on and…..well, that isn\’t the real number then, is it?
Quite what should be done next I\’m not sure. They supposedly have a decent mortgage origination department (stop sniggering at the back there) which might be worth something to someone else. Flog that off and then run it down?
But I admit I haven\’t actually thought about it very much. Anyone else got any bright ideas?