killmicrosoft
20-02-2008, 10:48 AM
orthern Rock PLC
18 February 2008
18 FEBRUARY 2008
STRATEGIC REVIEW UPDATE
Northern Rock taken into temporary public ownership
The Board of Northern Rock notes the Government's announcement of its intention
to take the Company into temporary public ownership by legislation under which
it will acquire all of the shares in the Company, including the preference
shares. The Government expects temporary public ownership to become effective
within the next few days.
It has been important to have had the time to ensure there were a number of
private sector solutions available. The Board hoped that at least one of those
options would succeed and is very disappointed that the Government concluded
that it was unable to provide funding to support a private sector solution and,
in particular, the proposal put forward by the Company, which the Board believed
satisfied the interests of all stakeholders.
The Company has been informed that the listing of its ordinary and preference
shares has been suspended with immediate effect by the UK Listing Authority and
that trading of these shares on the London Stock Exchange has ceased. The
Government has said that it will be providing details shortly of the independent
valuation process that will be established to assess compensation due to
shareholders. The Company understands that the listing and trading of the debt
instruments of the Company and its financing vehicles remain unaffected
The Government has also announced that it intends to appoint Ron Sandler as the
new Executive Chairman of the Company and Ann Godbehere as the new Chief
Financial Officer to work with the existing management team to determine the
appropriate business strategy for the Company whilst in temporary public
ownership. It is not possible at this stage to give any guidance on the nature
of such changes or on the impact of any changes, which may be made to the
business, on employees of the Company.
The Government's announcement makes clear that the Company and its new
management will be expected to operate at arm's length from the Government with
commercial autonomy for its decisions and with the aim of returning the Company
to the private sector at the earliest opportunity.
The Government has indicated that the new management of the Company will be
asked to identify a viable long-term future for The Northern Rock Foundation
and, in the meantime, that the proposals being developed by Mr Sandler envisage
the Company paying to the Foundation a minimum of £15 million per year in each
of 2008, 2009 and 2010.
The Government has confirmed that the Company will remain fully open for
business, working normal hours and operating as usual and that customers will
not be affected by this development. It has also confirmed that HM Treasury's
guarantee arrangements remain in place and depositors' money continues to be
safe and secure. All branches, call centres, and other operations remain open
for business to ensure the Company continues to provide a high standard of
service to its customers.
City Contacts Press Contacts
Richard Moorin Brian Giles
Investor Relations Communications Director
0191 279 4093 0191 279 4676
Simon Hall John C Watson
Investor Relations Corporate Communications
0191 279 6090 0191 279 5295
Ron Stout
Corporate Communications
0191 279 4921
James Murgatroyd
Finsbury Limited
020 7251 3801
The Blackstone Group International Limited ('Blackstone'), Citigroup Global
Markets Limited ('Citi') and Merrill Lynch International, which are authorised
and regulated in the United Kingdom by the Financial Services Authority, are
acting exclusively for Northern Rock plc and no-one else in connection with the
matters referred to in this announcement and will not be responsible to anyone
other than Northern Rock plc for providing the protections afforded to clients
of Blackstone, Citi or Merrill Lynch International nor for providing advice in
relation to the matters referred to in this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
killmicrosoft
20-02-2008, 10:49 AM
Blackstone Group
The Blackstone Group is a private investment banking firm and describes itself as a "leading global investment and advisory firm." The Blackstone Group was founded in 1985 by a group of four, including Peter G. Peterson and Stephen A. Schwarzman.
The Blackstone Group has ties to American International Group, Inc. (AIG) and Kissinger Associates, Inc./Henry Kissinger. According to the Blackstone website, AIG acquired a 7% non-voting interest in the company in 1998 for $150 million "and committed to invest $1.2 billion in future Blackstone-sponsored funds".
"Blackstone has developed strategic alliances with some of the largest and most sophisticated international financial institutions. In addition to AIG, they include Kissinger Associates, Roland Berger & Partner, GmbH, and Scandinaviska Enskilda Banken," the website states. [1]
The company's Blackstone Alternative Asset Management unit handles $1 billion in hedge funds for pension giant CalPERS.
John Forbes Kerry 2004 campaign 'adviser' Roger C. Altman was Vice Chairman of The Blackstone Group from 1987 through 1992 "where he led that firm's merger advisory business". [2]
In December 2001, The Blackstone Group was appointed as Enron's principal financial advisor with regard to its financial restructuring.[3] The company also advised Enron on "the Sale of its North American Power and Gas Trading Business to UBS". [4]
The Blackstone Group is also handling the restructuring of Global Crossing. [5]
Contents [hide]
1 Political contributions
2 Lobbying
3 Personnel
4 Contact information
5 References
6 External Links
[edit]
Political contributions
Stephen A. Schwarzman, the Chairman, CEO, and Co-founder of Blackstone Group, is a Bush Pioneer (see Bush's Rangers) having raised at least $100,000 for Bush in the 2004 presidential election. [1]
[edit]
Lobbying
Blackstone Group spent $940,000 for lobbying in 2006. Five lobbying firms were used. [2]
[edit]
Personnel
Key executives: [3]
Stephen A. Schwarzman, Chairman and Chief Executive Officer
Peter G. Peterson, Senior Chairman
Hamilton E. James, President, Chief Operating Officer
Michael A. Puglisi, Chief Financial Officer
Selected board members: [4]
J. Tomilson Hill, President and Chief Executive Officer of the Funds of Hedge Funds group
Brian Mulroney, Member of the Board of Directors of Archer Daniels Midland Company
Lord Nathaniel Charles Jacob Rothschild, Deputy Chairman of British Sky Broadcasting Group
[edit]
Contact information
New York
The Blackstone Group
345 Park Avenue
New York, NY 10154
USA
Phone: +1 212 583 5000
Fax: +1 212 583 5712
London
The Blackstone Group International Limited
Stirling Square
5-7 Carlton Gardens
4th Floor
London, SW1Y 5AD
U.K.
Phone: +44 20 7451 4000
Fax: +44 20 7451 4038
Web: http://www.blackstone.com
[edit]
References
↑ Pioneers and Rangers, Texans for Public Justice, accessed July 2007.
↑ Blackstone Group lobbying expenses, Open Secrets.
↑ Blackstone Group Officers, Blackstone Group, accessed July 2007.
↑ Board and Committees, Blackstone Group, accessed July 2007.
[edit]
External Links
Enron, "Enron files voluntary petitions for Chapter 11 re-organizations; sues Dynegy for breach of contract, seeking damages of at least $10 billion", Press Release, December 2, 2001.
Simon Romera, "Global's Filings Failed to Note Business Link To Its Adviser", New York Times, March 20, 2002.
Stonebridge International, "Board of Advisers: Roger C. Altman", undated, accessed February 25, 2004.
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killmicrosoft
20-02-2008, 10:51 AM
Bush's Rangers
Bush's Rangers, fundraisers for the George Walker Bush U.S. presidential election, 2004, raised funds for Bush-Cheney '04 Inc. through the "practice of rounding up contributions from your friends [which] is known as 'bundling'."[1]
"Bush's elite fundraisers span the worlds of finance, real estate, industry and politics. The common denominator: each is wealthy and has access to others with fortunes. With few exceptions, they are white, male and over 50." [2]
Bush "all but ensured that he would double his purse this next round when he signed the 2002 'McCain-Feingold' campaign finance reform. While McCain-Feingold curbs certain abuses, it also doubled the value of Bush's Pioneer fundraising operation overnight by increasing federal contribution limits. A Bush Pioneer who raised $100,000 in 2000--by bundling $1,000 checks from 100 people--now can obtain $2,000 from those donors and enter Bush's new elite club of $200,000 'Ranger' fundraisers." [3]
Contents [hide]
1 "Ranger" System Designed by Rove
2 Some of the "Rangers"
3 Related SourceWatch Resources
4 External Links
[edit]
"Ranger" System Designed by Rove
"The Ranger system, which was devised by Karl Rove, Mr Bush's senior political adviser, has helped to ensure that recent reforms of American campaign finances have backfired on their Democrat supporters. The new rules restrict soft money donations - often sent straight to a party from a corporate chequebook and used for issues-based electioneering - - but have doubled to $2,000 the limit for "hard" money donations by individuals.
"Mr Rove's system has proved to be the most effective way of operating within the law while allowing Rangers to come to the President's table with far more money than the individual limit.
"Pioneers who helped to open the White House door to Mr Bush were generously rewarded. By the end of his first year in office, 19 of them had become ambassadors."
According to Craig McDonald, who runs the watch group Texans for Public Justice, "the system had its origins in the campaign donor lists compiled for Republican candidates in Texas by Mr Rove, then a direct-mail solicitation specialist, in the 1980s. ... 'This is not Right-wing or Christian-Right money, and the motive [in giving] is simply self-interest,' said Mr McDonald. "From the start, the two largest sectors for donors were the energy and extractive industries, and then finance. ... 'These were the people who ran Texas. Rove thought President Bush would be a perfect fit with this oligarchy of Texas when he ran him for governor, and now they have expanded to system to cover America. They got it right.'" [4]
[edit]
Some of the "Rangers"
Jack Abramoff, convicted on 5 felony counts. Given 5 yrs in prison and ordered to pay $21 Million in restitution on March 29, 2006.
James A. Baker IV helped Bush set foreign policy. Was co-hcair of IRaq Report, which Bush refused to accept. Congress passed legislation enacting the Iraq Group report in early 2007.
Haley Barbour currently Gov of Mississippi
Marvin Pierce Bush work in an office leased by the Saudi Royal Family in the Watergate, D.C.
Randy "Duke" Cunninghampled guilty, on Nov 28, 2005 after resigning from Congress. He was sentenced to 8 years in prison, and a $ 1.8M restitution.
William DeWitt, Jr. of Cincinnati, head of an investment firm and co-owner of the St. Louis Cardinals.
Richard J. Egan, billionaire, Hopkinton, MA, "founder of EMC Corp., which makes computer data storage units. He is the president's former ambassador to Ireland. His sons Christopher and Michael also are Rangers." IRish media implicated Egan in a $62 Million fraudulent tax shelter.
Don Evans appointed US Commerce Secty bu Bush. Resigned Jan 2005.
Frank E. Fowler, art dealer, Lookout Mountain, TN, "who represents the work of American artist Andrew Wyeth."
Maurice "Hank" Greenberg, "ousted in March [2005] from AIG, the Shanghai property insurance company he built into a revered powerhouse because of a U.S. Securities and Exchange Commission investigation into his alleged stock manipulation" Indicted in New York on four counts in Sept 2006.
He and his two son's control the largest amount of insurance in the US. Dennis Hastert retiring in 2008, after losing his Speaker of the House when Dem retook the House in the 2006 elections. Tainte by several ethcis scasals, under his watch, including a cover up of the well know Rep. Mark Foley -R-FL's sexual online stalking of male Congressional pages.
Mori Hosseini, Chairman and CEO of ICI Homes, Trustee of Embry-Riddle Aeronautical University.
Larry Householder, former speaker of the Ohio House of Representatives "under grand jury scrutiny for the alleged skimming of campaign funds" but was exonerated. LIves on his farm.
Ray L. Hunt heir to the hunt Oil Fortune, Got Bush Presidential Library at Southern Methodist U, where he sits on school's board. Entered into probable illegal oil lease with Kurds in Iraq, in 2007, without authorization from official Bahgdad government.
P. Nicholas Hurtgen,convicted on 3 felony charges in a hospital construction extortion scam, Was former aide to Wisc Gov. Tommy Thompson.
Mark Langdale Bush appoints as Ambassador to Costa Rica in 2005
Kenneth L. Lay, convicted in largest US fraud case in history. Died before sentencing.
Tom Noe, convicted of money laundering with Bushh-Cheny 2004 campaign, in May 2006.
Joe O'Neill, "the Texas oilman who introduced Mr Bush to his wife, Laura."
George E. Pataki, former Governor of New York (1995-2006).
Alex Spanos, Stockton, CA, "real estate developer and owner of the San Diego Chargers."
Manuel Stamatakis, a "management consultant who once chaired the [Philadelphia] region's port authority" under investigation by FBI from the other "Rangers" Hurtgen and Noe, as of 2006.
Craig Roberts Stapleton Bush made US Amb to Czech Republic. MArried to Bush's cousin.
James Tobin, "Maine political consultant, guilty of jamming the Democrats' phone lines in New Hampshire three years ago"
Jerry Weintraub, film producer, "credits include Nashville and Ocean's Eleven."
Jim Wilkinson Iraq War Planner and chrony appointee in US Sate Dept.
Charles Wyly and Sam Wyly, brothers who "have 'fessed to concealing half their holdings in one of the rich boys' companies, Michaels Stores. The grand jury is still out on deciding to indict the two for the crime of fraud upon the stock market." Orignial founders of Swift Boat Vets for Truth, which was fined by FEC for campaign 'irregularities in the 2004 election.
Updated Sept 20, 2007 from Wikipedia, newspaper and other news sources. Simple Google search of Ranger's names brings up convictions and associations. Sources for names and contributions of Bush's Rangers:
Telegraph UK, June 15, 2003.
White House for Sale.org, with interactive name links.
USA Today, October 15, 2003.
[edit]
Related SourceWatch Resources
Bush administration scandals
James Francis Jr.
Republican 'culture of corruption'
Republican National Convention
[edit]
External Links
Jim Hightower, $hrub's Pioneer$, BushFiles.com, May 28, 1999.
Charles Laurence, Bush's Rangers on trail to round up record $200m, news.telegraph.co.uk, June 15, 2003.
Steve Kingstone, Bush begins fundraising drive, BBC, June 18, 2003: "If Bill Clinton was the consummate campaigner, George Bush is the final word in campaign fundraising."
Editorial: Bush's Rangers / Money shouldn't make the political world go round, post-gazette, July 21, 2003.
Dave McKenna, Ambassadors of the Game, WashingtonCityPaper, September 13, 2003.
Thomas B. Edsall and Sarah Cohen, Bush Campaign Raises A Record $49.5 Million. For Their Efforts, Fundraisers Also Gain, Washington Post, October 15, 2003: "The record receipts -- more than triple the top Democrat's fundraising for the quarter -- were driven in large part by just 285 men and women, who collected $38.5 million or more, which was at least 45 percent of Bush's total take. This fundraising elite, many of whom were beneficiaries of Bush administration policies, included 100 'Rangers,' who raised at least $200,000 apiece, and 185 'Pioneers,' who collected at least $100,000 each."
Jim Drinkard and Laurence McQuillan, 'Bundling' contributions pays for Bush campaign, USAToday, October 16, 2003.
Glen Justice, Once at Arm's Length, Wall Street Is Bush's Biggest Donor, New York Times, October 23, 2003: "A study to be released today shows that the financial community has surpassed all other groups, including lawyers and lobbyists, as the top industry among Mr. Bush's elite fund-raisers. The list of those generating $100,000 and $200,000 now includes chief executives like Henry M. Paulson of Goldman Sachs, John J. Mack of Credit Suisse First Boston and Stanley O'Neal of Merrill Lynch, whose firm has already raised twice the amount for Mr. Bush's re-election that it did during the entire 2000 campaign cycle. ... 'It's really a question of policy, that's what's driving this,' said Marc Lackritz, president of the Securities Industry Association, which represents more than 650 securities firms. 'It's a pro-investor policy.'"
Glen Justice, Newcomers Provide Fuel for Bush Money Machine, New York Times, March 14, 2004.
Thomas B. Edsall, Sarah Cohen and James V. Grimaldi, "Pioneers Fill War Chest, Then Capitalize," Washington Post, May 16, 2004.
Jonathan E. Kaplan, "RNC offers 'Super Ranger' status," The Hill, May 18, 2004.
Greg Palast, "Give It Back, George. Did Wyly Coyotes' Ill-Gotten Loot Buy White House?," gregpalast.com, April 11, 2005.
Joshua Boak, "Criminal probes entangle numerous fund-raisers. 8 Pioneers and Rangers face wide range of allegations," Toledo Blade, December 18, 2005.
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redhead
20-02-2008, 12:16 PM
I feel sorry for the taxpayers. Fleece them all to the tune of about £3000 each to prop the bank up, then pay some rich bloke 90K a month to run it. Surely there is something wrong to lend Northern Rock 25 billion at such an interest rate that they cannot make a profit by lending it out at an even higher one because no one would borrow it, then compulsarily purchase it at a snip with no argument, to sell it back at a huge profit all at the taxpayers expense. Surely this is theft from not only shareholders but taxpayers. This, is real government white collar crime.