any comments, thoughts, on this stock.

LONDON (Thomson Financial) - "Adam Applegarth, chief executive of struggling UK mortgage lender Northern Rock PLC, said an emergency borrowing facility it has negotiated with the Bank of England will be capped by the amount of collateral it can provide.
'It is determined by collateral. Given that we are using our mortgage assets as collateral, it's clearly a substantial amount,' he told reporters on a conference call.

Applegarth declined to comment on the interest rate it will pay. According to press reports, borrowing under the facility will be charged at a punitive rate of 6.75 pct.

The Northern Rock CEO also declined to say how long the borrowing facility will be available.

'It is of sufficient duration in the Bank of England's view to see us through the liquidity freeze,' he said.

Earlier today, Northern Rock said it had negotiated emergency funding from the BoE after being hit by the credit crunch, and issued its second profit warning in three months.

Northern Rock said its 2007 underlying pretax profit looks set to come in at 500-540 mln stg, down from 588 mln stg last year, and below the current consensus analyst forecast of 647 mln stg."

Glad I didn't get into Northern Crock...but will keep an eye on the sp and try and get in at/near the bottom for recovery play

wonder if AL. is not a better recovery play

48 million shares traded in 45 mins & sp down 24%. Surely that's got to be a record for a banking stock?

They pinch 20% of the big boys business.

Now the big boys refuse to lend them money - no surprise there then!

This is now in take over territory.

yes and the big boys may well be dividing up the spoils when a bidder comes in. The business method has been left wanting and company will be ripe to consolidate into a larger bank with a more conservative approach. Short term there is a confidence crisis with depositors which is aggrevating the situation.

Maybe one for Barclays as RBS looks more likely for ABN. Could be worth a punt soon.

The problem is if the news reports a mass exodus by its customers before a buyer comes in, what then with the sp.

From their Web Site.

Welcome to Northern Rock Specialist Lending.
We can now offer you and your clients a full range of sub-prime mortgage products from Niche Prime to Unlimited a wide choice designed specifically to meet all of your needs.

NEW! Sub-Prime product range launched offering a free mortgage valuation complimenting our existing range of products.

Given that NRK assets are essentially standard mortgages, their book should be reasonably clean and the likes of Barclays must be salivating at the prospect of picking it up dirt cheap - always assuming the ABN deal goes away and Barclays does not have too many skeletons itself in the Barclays Capital cupboard. Borrowing short and lending long has always been trouble - why do people think they are cleverer now than in previous generations? Just shows that it is cash (or lack of it) rather than profit (or lack of it) which causes businesses to fail.

Any bank would have to be foolish to rush in and bid for NRK before the sub prime/liquidity problems are resolved. Personally I think both Barclays and RBS will withdraw their offers for ABN which would be sensible till the "dust" settles.

NRK shares likely to trend lower after this weekends press reporting especially if there is a "run" on the bank as depositors seek safer havens for their funds.

no one will buy NRK at the moment......they are in trouble because the rates they have to borrow at to cover their lending is higher than the what they are charging their customers....hence the reason they are in trouble in the first place......and with everyone rushing to withdraw cahs today...this will be even worse...then add onto the fact no one will take out a new mortgage with them...people will be in the process of starting to swap out today.

all that is going to happen is the other banks will offer NRK's customers a good deal to swap over.........why would anyone buy them now?

Today's falls just the start of it I think

Driver,
The sub prime stuff they do is merely as a broker for Lehman Bros.
Not their money at all, so not as daft as it seems.
Alan

Northern Wreck is a sell to 250p.

?

What would the P/E at that price be mitzy ?

their historic p/e is of no bearing now

Quite right yesterdays profits tomorrows losses.

Al
Yes you could be right NRK were on the radio this morning saying just that, but then there was some callers disputing this with documented evidence so who knows.