You are here: Home - Saving & Banking - News -

Northern Rock shares on the up

Written by:

Beleaguered bank Northern Rock’s shares rose by 36% in early afternoon trading yesterday, according to online broker The Share Centre.

Shares in the bank jumped following the Treasury’s announcement that it plans to convert the £25bn loan issued to the bank by the Bank of England, into bonds. The bonds would be guaranteed by the Government and would be sold on to investors, which would reduce the risk of nationalisation.

The plan, which has not yet been approved by the European Commission, is hoped to increase the chances of finding a private bidder for the bank, the deadline for which has been extended to 4 February 2008.

Andy Parsons, spokesperson for The Share Centre, said: “The success of the Government’s proposal to restructure Northern Rock’s debt in this way remains to be seen. Quite simply, it will depend on whether potential suitors feel this new initiative is one they can work with as they would no longer have to shoulder the burden of the loans outstanding.

“We still feel that Northern Rock is an extremely high risk investment. We are advising investors who already hold shares to continue to hold, while those new to investing should seek individual advice.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Gold, platinum and diamonds to sparkle in 2008

Alliance Trust has issued a forecast that a combination of rising demand from Asian economies and a continuing global tightness...