Northern Rock is like a little kid who just can't learn from its mistakes. But the difference here is that Northern Rock's mistakes could cost far more; Northern Rock has failed the exam, again! It posted a loss $1.15 billion while under the control of the British Government .We all know how hard times are for mortgage lenders, which has been ongoing now for almost a year. However, Northern Rock keeps drifting, while others barely manage stay on the line.
"While the losses reported today are likely to continue as the restructuring proceeds and as the credit environment remains difficult, I am confident that the foundations have been well laid for recovery and return in due course to private ownership," commented Northern Rock executive chairman Ron Sandler.
The only good news is that the bank somehow managed to repay £9.4 debt, about a third of what it owes to the Bank of England. Hit hard by the credit crunch, Northern Rock, once the fifth-largest home loan provider in the UK, was nationalised in February.
Trading in Northern Rock's shares has been suspended since the British Government took control. It is expected that the bank will continue to be in a loss position throughout the year.
Reference
http://companyinfo.northernrock.co.uk/downloads/HalfYear_Results_08.08.01.pdf
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