any comments, thoughts, on this stock.

Northern Rock UK's Darling 'can't be certain' when credit market instability will end UPDATE




(adds more comment)
LONDON (Thomson Financial) - Chancellor of the Exchequer Alistair Darling
has said that he "can't be certain" when the current instability in the credit
market will end.
Still, there has been some progress as liquidity has increased, he added in
a statement to Parliament relating to Northern Rock's financial problems.
The mortgage lender saw a run on deposits last month after it emerged that
it had sought cash from the Bank of England.
Proposing legislation to introduce new regime when a bank runs into trouble
would mean that depositors are "insulated from a bank that has failed", greater
certainty, and that they would be able to receive compensation quicker, he
added.
On the fate of Northern Rock, "any future solution must lie with the
company," he said.
He also called for a review of the tripartite system, which includes the
Bank of England, the Treasury and the Financial Services Authority, and governs
the financial industry.
"We need to review how the framework is operated," he said, adding that this
will include a review of the rules on swift takeovers of banks.
The FSA, he said, will review the UK liquidity regime.
Darling also said he has a mortgage at Northern Rock although no savings.
The head of the nation's purse strings said he will pursue the matter at an
international level. At the G7 meeting at the end of October, Darling plans to
propose three areas of reform: faster implementation of international liquidity
regulations; setting up an IMF early warning system; and a European agreement to
strengthen financial stability agreements.
sivakumar.sithraputhran@thomson.com

245p and below at end of day...i hope

Punters beware this will burn your fingers!!! up or down no-one knows!!

BoE recalls stability expert to help with Northern Rock crisis




LONDON (Thomson Financial) - The Bank of England has recalled a retired
financial stability expert to personally advise governor Mervyn King following
the Northern Rock fiasco.
The Financial Times said the reappointment of Alastair Clark, who retired
this year from his role advising King on the financial sector, will fan
speculation that the BoE is struggling to cope with the fallout from the crisis.
The Bank of England confirmed Clark's re-appointment as advisor but did not
give any details. The FT understands the job will be free-ranging and not
full-time.
The BoE has come under criticism for its conduct in the Northern Rock
crisis, which saw the first run on a UK bank in more than 150 years after the
Newcastle-based lender was forced to apply for billions of pounds in emergency
loans.

This shows what a prat Mervyn King is.

Virgin Group in talks to take over Northern Rock - sources UPDATE




(Adds analyst reaction, further detail)
LONDON (Thomson Financial) - Sir Richard Branson's Virgin Group is in talks
to take over troubled mortgage lender Northern Rock, according to a source
familiar with the matter.
The source said Virgin has formed a consortium of investment groups which
aims to provide the bank with an injection of capital. If the deal is
successful, Northern Rock would be combined with Virgin's personal financial
services unit, Virgin Money, led by chief executive Jayne-Anne Gadhia.
According to the source, Northern Rock's advisor, Merrill Lynch, has asked
the Virgin-led group and other potential bidders for the bank to put forward
complete rescue packages by this afternoon. Virgin has been in talks with
Northern Rock "for a few weeks", the source said.
Virgin declined to comment, while Northern Rock could not immediately be
reached.
By 9.35 am, Northern Rock shares were up 2.3 pct at 263 pence.
Analysts said the proposed deal would allow the respected Virgin Money brand
to replace the Northern Rock name, seen as tainted since a funding crisis at the
bank prompted a rash of panic withdrawals by savers last month.
At the same time, Virgin Money, which currently relies on Royal Bank of
Scotland to manufacture many of its products, would gain access to its own
lending operation.
"I would say this has a fairly high degree of credibility. Virgin would be
able to raise the money, but more importantly they've got a brand. The Northern
Rock brand has been irreparably damaged," said Magnus Mathewson, banks analyst
at stockbroker Hichens Harrison.
Other potential bidders for Northern Rock reportedly include US private
equity groups JC Flowers, Lone Star, Cerberus, Blackstone and Appollo.
According to press reports, investment bank Citigroup -- which is advising
Northern Rock alongside Merrill Lynch -- has offered to provide the mortgage
lender with a 10 bln stg loan in order to facilitate a sale.
Northern Rock, once the UK's eighth-biggest bank by market value, saw its
share price fall by as much as 80 pct after it revealed last month that this
summer's global credit crunch had forced it to seek emergency funding from the
Bank of England.
Northern Rock had funded 75 pct of its mortgage lending through borrowing on
the wholesale markets, and found itself unable to refinance its debts when
worries over rising defaults against US sub-prime mortgages prompted banks to
stop lending to each other in August.
On Tuesday, Northern Rock said "discussions continue with
selected parties" over a potential sale of the bank, but stressed that the
outcome of the talks was uncertain.
myles.neligan@thomson.com

Virgin will not make headway into this...it is just for media coverage...Branson is no fool - NRK will have more downtrend from now.

Think you might be in for a suprise.

High noon has passed...keep your ears on the ground.

Northern Rock Statement re Proposal




RNS Number:6504F
Virgin Group
12 October 2007


Press Release


For immediate release


"Virgin-led Consortium submits proposal to Northern Rock plc"


A consortium led by Virgin Group (the "Consortium"), has today submitted a
non-binding indication of interest ("Proposal") to the board of Northern Rock
plc ("Northern Rock" or the "Company") which, if consummated, will see the
Consortium inject substantial new equity into Northern Rock.


The Consortium includes:


* Virgin Group, a leading branded venture capital organisation, and
one of the world's most recognised and respected brands


* AIG Financial Products Corp., part of AIG, the international
insurance and financial services group


* WL Ross & Co LLC, the principal investment firm specialising in
restructurings, buyouts, and industry consolidations


* Toscafund Asset Management LLP, the international investment group
chaired by Sir George Mathewson


* First Eastern Investment Group, a leading Hong Kong-based investment
group


The Virgin Consortium, which has Sir George Mathewson as a special adviser, is
interested in investing in, and assisting in providing a continuing funding
solution to Northern Rock. It is the Consortium's intention to maintain Northern
Rock's listing, to retain the business in its entirety, to add to it and to grow
it in the future; rather than seeking a break up or partial solution. It is also
the Consortium's intention that the existing right of the charitable Northern
Rock Foundation to receive a proportion of the Company's profits be maintained.


The Consortium believes that beyond addressing Northern Rock's current liquidity
challenges, Northern Rock must seek a complete rebranding to repair its
franchise and the confidence of its stakeholders if it wishes to continue as a
standalone business.


The Consortium intends to capitalise on the strength of the Virgin brand, the
introduction of additional management and experience from the current Virgin
Money business, and the funding and liquidity solutions to be delivered by the
Consortium partners to rebuild Northern Rock's franchise on stronger
foundations. The Consortium believes that together with the Company it can bring
the business a renewed confident future for the benefit of all of Northern
Rock's current stakeholders.

As part of the proposal, Virgin Money will be transferred to Northern Rock in
return for equity; Northern Rock will, after completion of that transaction, be
renamed and rebranded Virgin Money. It is a complementary business, with an
established savings brand and a heritage in mortgages, and is a well-known
innovator in personal financial services. It is expected that the reconfigured
Virgin Money will quickly re-build a deposit base to drive a more sustainable
funding structure. In addition, a substantial cash sum will be injected into the
Company for new equity to be issued at a discount to the current share price,
which will improve the Company's capital position. These issues of new equity
would be conditional on the current shareholders approving a "whitewash" of the
provisions of Rule 9 of the Takeover Code, which would otherwise require the
Consortium to make a takeover offer for the Company's existing share capital.


The proposal is centred on the quickest possible solution to restore public
confidence in the business and return it to profitable growth. Virgin has close
to 100% name recognition in the UK with over 12 million brand customers in the
UK alone. It is consistently rated as one of the most trusted brands in the UK
and has a track record in personal financial services. Additionally, Virgin's
partners in the Consortium include major international institutions and highly
experienced investors in complex situations around the world.


It is proposed that the CEO of the combined business will be Jayne-Anne Gadhia,
CEO of Virgin Money and previously Managing Director of RBS Mortgages (where she
had responsibility for a mortgage book in excess of #65 billion). Prior to this
Jayne-Anne was Managing Director of the Virgin One Account both when owned by
The Royal Bank of Scotland and, before RBS' buyout of its joint venture, with
Virgin.


Commenting on the Proposal, Sir Richard Branson said: "I've always believed that
it's Virgin's role to improve things for customers through great value for money
products and services, innovation and great customer service - whichever market
we operate in. This has been evident in our financial service businesses both in
Britain and abroad. I believe that if we're successful we'll be able to create
an exciting new banking alternative for everyone in the UK. I and my team have
pulled together a heavy hitting consortium that we believe has not only the
knowledge and expertise but the financial clout to make a once great British
institution great again.


We have the opportunity to make a fresh start and build a renewed, confident
future for the business and its tremendous staff as a continuing independent
public company. We have confidence in the British economy going forward; and we
are determined to preserve one of the last remaining truly independent UK-owned
competitive forces in banking, mortgages and other financial services."


Commenting on the Proposal, Sir George Mathewson said: "I think the proposal
from Virgin is to the benefit of all stakeholders in Northern Rock. Virgin
provides an important point of stability and also has a recognised ability to
execute growth plans. I look forward to providing guidance and assistance in
building a strong new banking group."


The Consortium is being advised by Greenhill & Co International LLP
("Greenhill") and New Boathouse Capital, a subsidiary of Quayle Munro Holdings
("Quayle Munro Group").


This announcement does not constitute a commitment to proceed with the Proposal
or any other transaction in respect of Northern Rock and, in particular, it does
not constitute an offer for Northern Rock or an announcement of a firm intention
to make an offer under Rule 2.5 of the Takeover Code. Accordingly there can be
no certainty that the Proposal will result in any transaction or offer.


Greenhill is acting exclusively for Virgin Management Limited and for no-one
else in connection with the Proposal and will not be responsible to anyone other
than Virgin for providing the protections afforded to clients of Virgin or for
providing advice in relation to the Proposal or any other matters referred to in
this announcement.


Quayle Munro Group is acting exclusively for Virgin Management Limited and for
no-one else in connection with the Proposal and will not be responsible to
anyone other than Virgin for providing the protections afforded to clients of
Virgin or for providing advice in relation to the Proposal or any other matters
referred to in this announcement.

Contact details:

For more information contact:

Virgin Group Nick Fox - 020 7229 4738 / 07711 727 618


Greenhill & Co International LLP James Lupton / Edward Wakefield - 020 7198 7400


Quayle Munro Holdings Peter Norris / Andreas Wesemann - 020 7471 3770

M:Communications Nick Miles - 020 7153 1530 / 07796 171 667

This is a non-binding contract...good 'ol Branson is smart...he won't be losing his hard-earned money in NRK. Sp will come down.

Level II certainly interesting atm.

like the chart skinny .... let it be a lesson for any who want to dabble in NRK .... all totally but totally unpredictable, and the gyrations are truly wild

I am totally wrong today

almost impossible to be right except by pure chance .... my gut feeling would be to short at 300, but then i equally said i could not see anyone buying the charred remains in the first place!

Valuations these days are strange as I've alluded to before. buying highly leveraged outfits is acceptable fundamentals, which is why the ultra bears of 2-3 weeks ago were burnt. ;-0

A lesson for all methinks.

blimey, that's not a chart, it's the ECG of someone sneezing!

r u a doctor?

Branson to offer less than zero for the shares.....ie shareholders will have to pay him to bail out northern rock.