Monday 18 February 2008

Reino Unido 30 anos depois: estarao as nacionalizacoes de volta?




Todos os tabloides britanicos de hoje 18 de Fevereiro tem na sua capa a noticia da nacionalizacao do Northern Rock, um banco que declarou falencia ha sensivelmente seis meses.





Com efeito, o Ministro das Financas britanico, Alistair Darling, afirmou hoje em conferencia de imprensa que 'nao teve sucesso na procura de uma empresa qe aceitasse gerir o banco'. na sequencia da decisao o ministro esta sob fortes criticas do sector banqueiro britanico por ter decidido nacionalizar o falido banco Northern Rock.

Volvidos seis meses de consultas, o Alistair Darling afirmou que nao conseguiu encontrar alguma empresa que fizesse uma oferta de compra sustentavel e credivel. Espera-se um grande furor no parlamento britanico esta semana, uma vez que a ecisao traz de volta os apetites 'socialistas dos anos 1970, quando varias empressas publicas foram nacionalizadas.

O conglomerado Virgin, do multimilionario Richard Branson, havia apresentado uma proposta de compra que pelos vistos e contra todas as expectativas foi rejeitada, apesar dos comentarios optimistas do empresario durante a sua visita a China e India na companhia do primeiro Ministro Britanico, Gordon Brown.



George Osborne, o Ministro das Financas Sombra, afirmou que a demora na tomada de decisao mostra que a era da competencia do partido trabalhista terminou! tendo argumentado que esta decisao tardia significava que o publico em geral pagaria a fatura do risco do emprestimo de mais de 100 bilioes de libras!




Para mais detalhes, viagemos na companhia do Phillip Inmac, Larry Elliot e David henke do The Guardian

Chancellor Alistair Darling, discusses his decision to nationalise Northern Rock at a news conference in central London, February 17 2008.






The chancellor, Alistair Darling, moved to end six months of turmoil over the fate of Northern Rock yesterday when he admitted his efforts to find a buyer for the stricken bank had failed and he was forced into the first nationalisation of a British company since the 1970s.
With Labour desperate to minimise the political fallout from the decision, government sources insisted that a "temporary" period of public ownership did not represent its "Black Wednesday moment" but was the best outcome for the taxpayer.
Opposition parties were, however, quick to exploit the chancellor's embarrassment after he used a press conference at the Treasury to admit that the failure of talks with Sir Richard Branson's Virgin Group - the preferred private bidder - had left the government with no alternative.
Darling and the prime minister, Gordon Brown, had previously described this as the "least favourable option". Since it emerged five months ago that Northern Rock had sought help from the Bank of England, it has relied on £55bn of taxpayers' guarantees to stay in business.
Darling said: "At the end of the day the biggest issue is the safeguarding of taxpayers' money. If nationalisation saves that money, that has to be the correct step in the long term." He defended his handling of the crisis, saying the collapse of the bank was the fault of its directors. The government only stepped in to prevent a domino effect in the industry, he said.
"I would have been quite wrong to do this last September. It was right to allow the board of the bank and the shareholders time to see if a private sector solution could be found. It was absolutely right to explore all the possibilities."
Shadow chancellor George Osborne accused Brown of "dithering" over the decision and said yesterday was the day "Labour's reputation for economic competence died". "The taxpayer will bear the risk of lending £100bn of mortgages in an uncertain market. We will not back nationalisation. We will not help Gordon Brown take this country back to the 1970s."
Ron Sandler, the "company doctor" appointed as Northern Rock's executive director said the business would be slimmed down to a "more sustainable size" but would not comment on what that means in terms of potential job losses.
The Liberal Democrat Treasury spokesman, Vince Cable, who had campaigned for the bank to be nationalised, said the right decision had finally been made. "This is the option the Liberal Democrats have argued for, unlike the Tories who have no alternative to offer. The first priority must be to work out the seriousness of the problems at the bank with an independent audit of its loan book. Secondly, the bank must stop irresponsible lending and aggressive deposit-taking. Thirdly, there will be difficult times ahead, especially for the employees, as the bank is downsized. However, there is now hope for the long-term future of the bank when it is eventually sold in more satisfactory conditions," he said.
Cabinet colleagues were rallying round Darling last night, saying the crisis had been handled well, given the turmoil on global markets, and it showed Darling was prepared to make difficult decisions.
The prime minister's spokesman rejected the idea that this was Labour's Black Wednesday - when the Tory government had to pull the pound out of the European exchange rate mechanism. "That was an intervention that failed. This was an intervention that succeeded."
No 10 said it had been a commercial decision taken after full evaluation of the options. "This is not a political decision. It was taken in the best interests of the taxpayer," the spokesman added. "All comparisons with the 1970s are absurd. The man running it has credibility in the City, it will be run on a commercial basis and at arms' length from the government.
Darling said the plans put forward by Branson's Virgin Group would have made the government wait too long to get its money back, while the inhouse management team was unable to inject enough funds to sustain the bank.
The government remains nervous, however, that powerful shareholder groups will take their case to the courts should they be offered a low price for their shares. Several groups said yesterday they were consulting lawyers.
Their cause was supported by Branson, who said: "We were very clear the business plan we put forward was robust, conservative but ultimately capable of rescuing the interests of all stakeholders. However we must accept the decision with good grace."

1 comment:

MANUEL DE ARAÚJO said...

Northern Rock in crisis
Northern Rock: Darling’s statement
Published: February 17 2008 17:47 | Last updated: February 17 2008 17:47

”I would like to make a statement on the government’s decision on the future of Northern Rock. I am doing so today [Sunday] because it is necessary to make a formal announcement before the markets open tomorrow morning.

“The government has now completed its review of the two detailed proposals on the table. We have made our choice after considering all proposals.

EDITOR’S CHOICE
Martin Wolf: Right decision, but far too late - Feb-17Timeline: The Northern Rock crisis - Feb-17In depth: Northern Rock - Feb-04Nationalisation rocks Brown’s reputation - Feb-17Lombard: The Rock's hidden alchemy - Feb-09Investors back team from Rock - Feb-07“Last autumn, the government stepped in to save Northern Rock to stop its problems spreading to other parts of the banking system.

“But in current market conditions, we do not believe that they deliver sufficient value for money for the taxpayer.

“So the government has therefore today decided to bring forward legislation to take Northern Rock into a period of temporary public ownership.

“We have done so after full consultation with the Bank of England and the Financial Services Authority.

“Northern Rock will continue operating as a bank on a commercial basis. It will be open for business as usual tomorrow morning and thereafter.

“Importantly savers’ and depositors’ money remains safe and secure.

“The government guarantee arrangements I announced last year remain in place and will continue to do so.

“Borrowers will continue to make their payments in the normal way.

“Our financial adviser Goldman Sachs has concluded from a financial point of view that a temporary period of public ownership better meets our objective of protecting taxpayers.

“The bank will be run at arm’s length and on a commercial basis. I will appoint Ron Sandler as executive chair to run the bank.

“I will also appoint Ann Godbehere, former financial officer at Swiss Re, as chief financial officer.

“The Financial Services Authority continue to assure me the bank is solvent. It believes that Northern Rock’s mortgage book is of good quality. And the FSA will also continue to regulate the Northern Rock.

“We will be introducing the necessary legislation tomorrow to do that. I will also be making a statement to the House of Commons tomorrow afternoon.

“Let me now turn to the background to the decision we have made.

“The problems in the subprime mortgage market last year that started in the US, spread to Europe and Asia, with banks extremely reluctant to lend to each other in the autumn.

“As a result of this market turbulence a number of firms have run into difficulties in the United States and in Germany, for example.

“$100bn has been written off the books of financial institutions globally since the summer.

“In Germany, a number of banks have experienced difficulties and received support, and only last week the German government announced a further €1bn of support to IKB.

“And the authorities have had to take action to preserve financial stability in countries right across the world.

“Here in Britain, because of its particular business model, Northern Rock, last summer, found it increasingly difficult and then impossible to raise the billions of pounds it needed to finance its business.

“For financial stability reasons, we decided that it was right to support Northern Rock to allow it to continue operating. It was right to protect to depositors’ money and to protect the wider financial system.

“In agreeing to that support, the government had three objectives.

“First, financial stability. In the then prevailing conditions, there was a serious risk that other parts of the banking system in Britain could have been destabilised.

“It was right and necessary for the government to intervene because of the need to preserve financial stability in the system. That support was successful and prevented further contagion.

“Secondly, the government was also determined to safeguard depositors’ money and we took action to put in place guarantee arrangements which have been successful in doing so.

“None of the guarantees have been called and therefore there has been no cost to the taxpayer.

“That brings me to my third objective of protecting the interests of the taxpayer.

“We believed it was right to allow the board and shareholders to explore every opportunity to find a private sector solution, subject to not increasing taxpayer costs.

“While in September and October uncertainty in the market place made it difficult to attract potential buyers, in November and December the board of Northern Rock received a number of expressions of interest.

“And we decided to test them; we wanted to give time to shareholders and the management to find a solution.

“But it became clear that no institution was prepared to make an offer for Northern Rock without some form of public support because of prevailing market conditions.

“That is why the government was prepared to consider a backstop guarantee arrangement to allow the board and shareholders to explore a private sector solution, provided that the terms and conditions were acceptable and met the principles I set out.

“In order to provide certainty for all interested parties and meet state aid rules, a solution has to be found by March 17. It is not possible, nor would it be desirable to go beyond that time.

“Two detailed proposals have been received, one from the Virgin consortium and one from Northern Rock. And they had to be considered alongside temporary public ownership.

“We are very grateful to the bidders for their work with us over many months to establish whether a private sector-led solution on acceptable terms could be found.

“Both proposals involve a degree of risk for taxpayers and very significant implicit subsidy from the Treasury, involving a payment below the market rate to the government for continuation of its guarantee arrangements and for the financing we would be putting in place.

“Each proposal has its pros and cons. The Virgin proposal, for instance, would have brought a new brand and management.

“However, the taxpayer would only have seen any share of the private sector’s return if the value of the business to its investors had reached at least £2.7bn.

“The board’s proposal would have involved a similar level of subsidy. But it has other disadvantages, compared with Virgin, including: that it would bring in less new capital, providing less ‘buffer’ protecting the taxpayer from risk; and, that the business would have been dependent on government guarantees for new retail deposits for longer.

“A subsidy on the scale required would not in the government’s judgment provide best value for money for the taxpayer, in circumstances where the private sector rather than the taxpayer would secure the vast majority of the value created over the period ahead. This would be a poor reflection of the balance of risk borne by the two sides.

“By contrast, under public ownership the government will secure the entire proceeds from the future sale of the business in return for bearing the risks in this period of market uncertainty.

“We could have chosen to pursue either of the two private sector options. But I have always said that I was determined to protect the taxpayers’ interest.

“It is clear that the private sector alternatives do not meet this test, when compared with public ownership.

“Accordingly, and taking all the wider considerations into account, I have concluded that this is the right approach.

“Moreover, it is my clear assessment that under the approach we are taking the taxpayer will see its outstanding loans to Northern Rock repaid in full, with interest – and that the business can be returned to the private sector as financial markets stabilise.

“Let me set out the next steps. Tomorrow [Monday], before the markets open, it is expected that the UK Listing Authorities will announce that the company’s shares will be suspended from listing tomorrow prior to the opening of the London Stock Exchange.

“Tomorrow, I am also publishing a bill to bring the bank into a period of temporary public ownership. I will give full details of the legislation to the House of Commons.

“The legislation will enable the government to acquire the bank’s shares and its assets. It will provide for compensation to be determined by an independent valuer.

“It will allow for the running of the bank and for the eventual transfer back into the private sector as soon as it is right to do so. Because public ownership is a temporary arrangement.

“The bill gives the government a general power to acquire the shares in, or assets and liabilities, of institutions.

“But let me make it clear that this legislation is only being introduced now because there is a need to bring Northern Rock into temporary public ownership.

“We have deliberately drafted the bill to ensure that a bank can only be acquired in certain tightly defined circumstances. And that power will only last for 12 months.

“I’ve already announced a consultation which will lead to permanent legislation to deal with situations like this in the future.

“Further details of this arrangement are contained in the bill which I will publish tomorrow morning when the House returns.

“As you can see Ron has joined me today and is ready to answer any questions you may have.

“He will want to consider carefully the options and will outline his proposals shortly including in relation to restructuring the business.

“Ron expects to be in Newcastle tomorrow to discuss the business and meet staff and their representatives.

“His proposals will also cover the Northern Rock foundation, where he will commit to guaranteeing a minimum income of £15m per year in 2008, 2009 and 2010. This will be paid directly by Northern Rock, and would be a condition of any sale if it were sold in this time.

“The new board will be asked to identify a viable long-term future for the Foundation. The new board and the company will operate at arm’s length from the government, with complete commercial autonomy for their decisions.

“As agreed in the memorandum of understanding all operational decisions will be made by the board with no interference from the government.

“It is our expectation that the company can be moved into the private sector at the earliest and most prudent opportunity.

“We are clear that this is the most effective way of continuing to support Northern Rock’s business, its savers, the wider financial system and safeguard taxpayers’ money.

“At every stage the stability of the economy and the interests of depositors and taxpayers have been – and remain – our first concern.

“This will continue to be the basis on which we will move forward in the coming months.

“I will make a full statement to the House of Commons tomorrow afternoon.”
Copyright The Financial Times Limited 2008

Print articleEmail articleOrder reprints