Posts Tagged 'nationalisation'

Northern Shock

rock.jpg

As the government prepares to nationalise Northern Rock, we must ask ourselves how would a Conservative government have dealt with the situation. Of course what should have happened is that the company should have been allowed to fall as a warning to us all. But of course the public relations disaster meant that this is not a viable option for a government of any colour.

With this in mind, I still believe that the correct course would have been to exercise the Government’s arm as the biggest stakeholder to effectively nationalise the company. Now I know that nationalisation is not on a right wing government’s agenda but, this would effectively give senior management time to restructure the company and then sell it in two years time once the market has calmed.

What is actually happening is that the tail is wagging the dog as shareholders are demanding a higher price. The government should screw its courage to the sticking post and pay the shareholders nothing.

To the shareholders: ‘Caveat emptor’!


July 2017
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