Hedge funds to pounce on Northern Rock

Three hedge funds are set to pounce on Northern Rock, the British mortgage lender.
SEP 24, 2007
By  Bloomberg
Three hedge funds are set to pounce on Northern Rock, the British mortgage lender. Chris Flowers, a former Goldman Sachs banker, along with Cerberus Capital Management L.P. of New York and Citadel Investment Group LLC of Chicago, are reportedly plotting to split Newcastle-based Northern Rock’s $202.2 billion (100 billion pounds) mortgage book, the Sunday Telegraph reported. Now that the firm’s mortgages have plummeted below face value, the hedge fund suitors can cash in if they hold the mortgages until they mature, the Telegraph said. But the shareholders would have virtually nothing. The suitors haven’t approached Northern Rock’s board yet. Rumors of the bank’s takeover have swirled for the last week, with Lloyds TSB Group and Barclays of London; Edinburgh-based Royal Bank of Scotland, and National Australia Bank reportedly considering a purchase InvestmentNews, Sept. 19. The Bank of England also floated billions to Northern Rock, including $6.06 billion (3 billion pounds) from its emergency credit line last week, the Telegraph said.

Latest News

Farther debuts AI investment proposal tool for advisors to win clients
Farther debuts AI investment proposal tool for advisors to win clients

"Im glad to see that from a regulatory perspective, we're going to get the ability to show we're responsible [...] we'll have a little bit more freedom to innovate," Farther co-founder Brad Genser told InvestmentNews.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

Are you optimally efficient?
Are you optimally efficient?

Taking a systematic approach to three key practice areas can help advisors gain confidence, get back time, and increase their opportunities.

Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida
Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida

Meanwhile, Osaic lures a high-net-worth advisor from Commonwealth in the Pacific Northwest.

Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B
Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B

The deals, which include its first stake in Ohio, push the national women-led firm up to $47 billion in assets.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.