Northern Rock (Asset Management)
Encyclopedia
Northern Rock plc (also referred to as NRAM) is a British
asset holding and management company which was split away from the Northern Rock
bank in 2010. It is currently under public ownership, due to the bank's nationalisation in 2008. The company continues to service a residential mortgage book of approximately £50 billion.
On 17 November 2011 it was announced that Virgin Money were going to buy the "good bank" side of Northern Rock plc for £747 million; the government have said that they will not be selling Northern Rock (Asset Management).
On 14 September 2007, during the financial crisis of 2007–2010, the Bank sought and received a liquidity support facility from the Bank of England
, following problems in the credit markets caused by the US subprime mortgage financial crisis. At 00:01 on 22 February 2008 the bank was taken into state ownership
(see the Nationalisation of Northern Rock
). The nationalisation was a result of two unsuccessful bids to take over the bank, neither being able to fully commit to repayment of taxpayers' money. To better control the assets of the bank it was decided to split the company in two, forming the new bank and leaving this company as the so-called 'bad-bank'.
On 24 March 2010 UKFI announced its intention to integrate Northern Rock (Asset Management) plc and Bradford & Bingley
plc under a single holding company. On 1 October it was announced that Bradford & Bingley plc and Northern Rock (Asset Management) plc had been merged under a single holding company U.K. Asset Resolution Ltd.
On 3 August 2010 the company announced pre-tax profits £349.7m for the first six months of the year. On 1 October 2010 the bank announced that another £700 million had been paid off of the loan in the last three months.
The Northern Rock (Asset Management) is based on the same large site at the Regent Centre
in Gosforth
, Newcastle upon Tyne
as the Northern Rock bank.
Northern Rock (Asset Management) board as of 1 January 2011:
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
asset holding and management company which was split away from the Northern Rock
Northern Rock
Northern Rock plc is a British bank, best known for becoming the first bank in 150 years to suffer a bank run after having had to approach the Bank of England for a loan facility, to replace money market funding, during the credit crisis in 2007. Having failed to find a commercial buyer for...
bank in 2010. It is currently under public ownership, due to the bank's nationalisation in 2008. The company continues to service a residential mortgage book of approximately £50 billion.
On 17 November 2011 it was announced that Virgin Money were going to buy the "good bank" side of Northern Rock plc for £747 million; the government have said that they will not be selling Northern Rock (Asset Management).
History
Northern Rock (Asset Management) plc was renamed from Northern Rock plc on 31 December 2009, and the following day the banking assets were split off into a new company called Northern Rock plc. Therefore current legal entity which exists as Northern Rock (Asset Management) company is in fact the company of the Northern Rock Building Society (founded 1965) which turned into a bank in 1997.On 14 September 2007, during the financial crisis of 2007–2010, the Bank sought and received a liquidity support facility from the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
, following problems in the credit markets caused by the US subprime mortgage financial crisis. At 00:01 on 22 February 2008 the bank was taken into state ownership
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
(see the Nationalisation of Northern Rock
Nationalisation of Northern Rock
In 2008 the Northern Rock bank was nationalised by the British Government, due to financial problems caused by the subprime mortgage crisis...
). The nationalisation was a result of two unsuccessful bids to take over the bank, neither being able to fully commit to repayment of taxpayers' money. To better control the assets of the bank it was decided to split the company in two, forming the new bank and leaving this company as the so-called 'bad-bank'.
On 24 March 2010 UKFI announced its intention to integrate Northern Rock (Asset Management) plc and Bradford & Bingley
Bradford & Bingley
Bradford & Bingley plc is a British bank with headquarters in the West Yorkshire town of Bingley. In 2008, partly due to the credit crunch, the bank was nationalised and in effect split into two parts; the mortgage book remained with the now publicly owned Bradford & Bingley plc, and the deposits...
plc under a single holding company. On 1 October it was announced that Bradford & Bingley plc and Northern Rock (Asset Management) plc had been merged under a single holding company U.K. Asset Resolution Ltd.
On 3 August 2010 the company announced pre-tax profits £349.7m for the first six months of the year. On 1 October 2010 the bank announced that another £700 million had been paid off of the loan in the last three months.
Operations
Northern Rock (Asset Management) holds and services the majority of existing mortgage and unsecured loan accounts. The company does not offer any new products and has no branches.Location
Regent Centre
Regent Centre is a large business park in Gosforth, Newcastle upon Tyne, England. The Centre is home to a variety of companies, including banking group Northern Rock whose Head Office is located on the site...
in Gosforth
Gosforth
Gosforth is an area of Newcastle upon Tyne, Tyne and Wear, England, United Kingdom, to the north of the city centre. Gosforth constituted an urban district from 1895 to 1974, when it became part of the City of Newcastle upon Tyne. It has a population of 23,620...
, Newcastle upon Tyne
Newcastle upon Tyne
Newcastle upon Tyne is a city and metropolitan borough of Tyne and Wear, in North East England. Historically a part of Northumberland, it is situated on the north bank of the River Tyne...
as the Northern Rock bank.
Corporate image
Northern Rock (Asset Management)'s logo is the letter NRAM underlined and in grey. Initially Northern Rock (Asset Management) used the same corporate identity as the bank; this was introduced in 2000 and consists of a magenta square containing the company name.Board of directors
Since the company split into two parts, each separate entity has had its own board of directors. With the merger of this company with the mortgage assets of Bradford & Bingley under a single holding company, Richard Pym, Chairman of both companies is to be appointed Chairman new holding company, and Richard Banks, currently Managing Director of Bradford & Bingley has been appointed Chief Executive designate.Northern Rock (Asset Management) board as of 1 January 2011:
- Chairman: Richard Pym
- Chief Executive: Richard Banks
- Executive Directors: Andy Tate
- Non-Executive Directors: Kent Atkinson, Sue Langley, Keith Morgan, Philip Remnant
See also
- Northern RockNorthern RockNorthern Rock plc is a British bank, best known for becoming the first bank in 150 years to suffer a bank run after having had to approach the Bank of England for a loan facility, to replace money market funding, during the credit crisis in 2007. Having failed to find a commercial buyer for...
- Granite (Northern Rock vehicle)Granite (Northern Rock vehicle)Granite is a securitisation vehicle created by the British bank Northern Rock, based in Guernsey.The purpose of Granite is to parcel up the mortgages provided by the bank and sell the value to investors...
- Nationalisation of Northern RockNationalisation of Northern RockIn 2008 the Northern Rock bank was nationalised by the British Government, due to financial problems caused by the subprime mortgage crisis...
- Partnership House
- UK Financial Investments LimitedUK Financial Investments LimitedUK Financial Investments Ltd is a company set up in November 2008 by the UK Government to manage its shareholding in banks subscribing to its recapitalisation fund. They include Lloyds Banking Group , Royal Bank of Scotland Group and Northern Rock...
- Banking (Special Provisions) Act 2008Banking (Special Provisions) Act 2008The Banking Act 2008 is an Act of the Parliament of the United Kingdom that entered into force on the 21 February 2008 in order to enable the UK government to nationalise high-street banks under emergency circumstances by secondary legislation...
- UK Asset Resolution LtdUK Asset Resolution LtdUK Asset Resolution Ltd is a British financial services holding company with headquarters in the West Yorkshire town of Bingley. It was established in October 2010 to hold the two run-off elements, Bradford & Bingley and Northern Rock , of the two nationalised banks in the wake of the financial...