080506THE NORTHERN ROCK BANK文档格式.docx
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080506THE NORTHERN ROCK BANK文档格式.docx
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thedecisiontostopwasmadebeforethe2007crisis.
In2006thebankhadmovedintosub-primelendingviaadealwithLehmanBrothers.AlthoughthemortgagesaresoldunderNorthernRock'
sbrandthroughintermediaries,theriskisbeingunderwrittenbyLehmanBrothers.
(3)northernrockbankcreditcrisisin2007
On12September2007,NorthernRockaskedtheBankofEngland,aslenderoflastresortintheUnitedKingdom,foraliquiditysupportfacilityduetoproblemsinraisingfundsinthemoneymarkettoreplacematuringmoneymarketborrowings.TheproblemsarosefromdifficultiesbanksfacedovertheSummer2007inraisingfundsinthemoneymarkets,causedbythesubprimecrisisintheUnitedStates.Thebank'
sassetswerealwayssufficienttocoveritsliabilities,butithadaliquidityproblembecauseinstitutionallendersbecamenervousaboutlendingtomortgagebanksfollowingtheUSsub-primecrisis.BankofEnglandfiguressuggest.
ByJanuary2008,NorthernRock'
sloanfromtheBankofEnglandhadgrownto£
26bn.OnJanuary11,NorthernRockannouncedthatithadsolditsportfoliooflifetimehomeequityreleasemortgagestoJPMorganfor£
2.2bnandthatitwouldusethistopayoffapieceoftheBankofEnglandloan.OnJanuary15,2008,ameetingwasheldatthe11,000seaterMetroRadioArenatodiscussthecurrentsituationatthebank;
allbutoneoftheproposalsputforwardbythehedgefundswererejected.
OnFebruary6,theOfficeforNationalStatisticsannouncedthatitwastreatingNorthernRockasapubliccorporation,similartotheBBCandRoyalMailforaccountingpurposes,causingtheloans(approximately£
25billion)andguarantees(approximately£
30billion)extendedbytheBankofEnglandandthevalueofthecompany'
smortgagebook(approximately£
55billion),provisionallyestimatedtototalaround£
100billion,tobeaddedtotheNationalDebt.Althoughnottechnicallyanationalisation,thedecisioneffectivelyacknowledgedthat,Inallbutname,NorthernRockisnownationalised.ThecostofthissupportincreasedtheNationalDebtfrom£
537billion,or37.7%ofGDPtoaround45%,breakingtheso-calledGoldenRulewhichsetsthePublicSectorBorrowingRequirementthresholdatbelow40%.Thefigureistheequivalentof£
3,000foreveryfamilyinBritain,oranincreaseinthebaserateofincometaxof28penceinthepound.Inthe2008Budget,theChancelloroftheExchequerannouncedthatthegovernmentwillissue£
14billionofgiltsinordertocovertheNorthernRockdebt.
On26MarchtheFinancialServicesAuthorityreleasedaninternalreportintothefailingsoverhandlingtheproblemsatNorthernRock."
Theyfoundthattheirsupervisionofthebankhadnotbeencarriedouttoastandardthatisacceptable"
.ThepreviousFSAreviewhadtakenplaceinFebruary2006.InthelightofthesefailingsatNorthernRock,theFSAannouncedthattheywouldoverhaultheirownstaffingandsystems.TheFSAinternalreportalsoconcludedthatultimatelytheblameforthecollapseofNorthernRockshouldsitatthefeetofthebank'
sseniormanagement."
Theboardsandmanagementsofregulatedfirmscarrytheprimaryresponsibilityforensuringtheirinstitutions'
financialsoundness,"
theFSAsaid.TheBritishBankers'
Association(BBA),theUKbankingbody,agreed.
On31Marchthebankreleaseditsannualreportfor2007,itshowedalossof£
167million.Theformerboss,AdamApplegarthisalsotoreceivea£
760,000(£
63,333amonth)payoff.Thereportalsooutlinedfurtherdetailsoftheirproposedbusinessplan.
2.Thereasonwhynorthernrockbankneedtochange
(1)thefinancingreplytoomuchonthewholesalemarket
Comparetootherbankfundsfromdepositors,althoughnorthernrockbankhasbeentransformedintoalistedcompanyin1997,butmostofitsfundingstillcomesfromfinancialinstitutions,innorthernrockbankoffundsbybanks,retaildepositsbytheshortageoffundsreceivedbyall25%,whileover75%ofthefundsfromthewholesalemarkets,throughlending,issuingbondsorsellingassetstofinancemortgagesecurities,and75%theproportionismuchhigherthanothermajorBritishmortgagecompany.Britain'
sbiggestmortgagelender–HBOSwhichtheshareisonly43%.Inviewofthestabilityoffinancingretaildeposits,thevastmajorityoffundingcomesfromthewholesalemarketwillmakenorthernrockbankfundsonthemarketvulnerabletotheimpactofsupplyanddemand.
Table1northernrockbanksourcesoffundsandallocationratio
ITEM
Theamount(100millionpounds)
Percentage(%)
Retaildeposits
224
23.2
AssetSecuritization
457
43.6
Non-retaildeposits
267
25.5
Preparedagainstthebond
81
7.7
Total
1049
100
(2)Thebalanceoftheinterestrategapbecomelarger
Thewholesalemarketandhousingloanmarketindifferentpricingmechanisms,northernrockbankhasincreasedtheinterestrategap.Whethertoissuebondsorhousingloansecuritizationoftheassets,theyareallbasedonthemarketthreemonthstotheLIBORpricing.However,northernrockbankmortgageloansinaccordancewiththeBankofEngland'
sbenchmarkinterestratetotherelease.Thisinvestmentandfinancingofthepricingmethodinthemoneymarketinterestrateshigherthantheofficialbankinterestrateswillcauselosses.Northernrockbankintheassetsofthebanks,themortgageloanstoconsumersamountedto96.7billionpounds,ofthetotalassetsof85.2%,96.7billionpoundsinthis,12billionpoundsisdirectlyexposedtotherisksofsuchinterestrategapThe.Thismeansthat,LIBOReachmorethanthebenchmarkrateapercentagepointeachyearbankswillpay12millionpounds.
Table2northernrockbank'
sassetstructure
Theamount(100millionpounds)
Consumerloans
967
85.2
PI
80
7.0
Financialderivatives
14
1.2
Cashpositionandthecentralbank
7.68
0.7
Other
66.32
5.9
1135
(3)USinvestmentlossesbyAmericansecondarydebt
Infact,northernrockbankdonotinvesttoomuchinAmericansecondarydebt,only0.24%inallassetsworthingabout275millionpoundwhich200millionpoundsinvestintheCDO,75millioninHEMBS.Andthedurationofthesesecuritiesislessthan2years,notimpactthe2006and2007yearloading.Eventhoughthelossisoveralloftheassets,butobviouslyitimpactthepsychologicalofthemarketinvestors.
(4)Operatingincomedeclinein2007
Interestratesofassetsandliabilitiesaswellasexpandthegapcausedbylackofmobilityofbusinessloanshavesloweddowntoreducethebank'
soperatingincome,causedbydepositorrunsonthedirectcausemaybetheBeiyanbankexpectedearningsdecline.AlthoughthefirsthalfofBeiyanbanksinthemortgagemarketshareincreasedsubstantiallyfrom2006inthesecondhalfofthe14.5percentriseto18.9percent.Totalassetsalsoincreasedby28percentfromayearago,buttheirprofitshavenotsignificantlyincreased.Inthefirstsixmonthsof2007,northernrockBankpre-taxprofitoflessthan300millionpounds,almostnogrowthinthesameperiodlastyear.Assetsofsubstantialgrowth,whilenotincreasingprofitability,northernrockbanksoperatingincomedeclinehasbecomeareality.
3.Themeasuresofnorthernbank
(1)selltheshares,seekliquidityactively
InadditiontotheEnglandbanktoapplyforemergencyloanstoincreaseliquidity,northernrockbankalsoshouldsellthesalesforliquidityofthereorganization.northernrockbankshouldsplitthese100billionpoundofmortgagetosellforthemobilityofcapital.Thebankonlycanholdcrisisforsometime,butcannotfundamentallysolvetheproblem.Theonlywaytosavenorthernrockbankistosellthesharesandmaketheassetsliquid.
(2)reduceloanproportion,increaseinvestmentdiversification
Northernrockbankloanproportionistoolargeandthespeciesisvery
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