Northern Rock (Asset Management)

Northern Rock (Asset Management)
Northern Rock (Asset Management)
Type Public ownership[1][2]
Industry Bank
Founded 1965
Renamed as Northern Rock (Asset Management) in 2010
Headquarters Northern Rock House, Gosforth, Newcastle upon Tyne, England, UK
Area served UK
Services Mortgages
Owner(s) Her Majesty's Government (UKFI / UK Asset Resolution Ltd)
Website www.n-ram.co.uk

Northern Rock (Asset Management) 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).[3]

Contents

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,[4] 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.[5][6] 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.[7] 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.[8]

On 3 August 2010 the company announced pre-tax profits £349.7m for the first six months of the year.[9] On 1 October 2010 the bank announced that another £700 million had been paid off of the loan in the last three months.[10]

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

The 1990s Northern Rock buildings at Regent Centre in Gosforth.

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.

Corporate image

Another section of the bank's Gosforth site.

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.[11]

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.[12]

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

References

  1. ^ "Northern Rock now in public hands". BBC News. 2008-02-22. http://news.bbc.co.uk/1/hi/uk_politics/7258492.stm. Retrieved 2008-04-06. 
  2. ^ "The Northern Rock plc Transfer Order 2008" (PDF). HM Treasury. 2008-02-22. http://www.hm-treasury.gov.uk/media/6/8/transfer_order_northern_rock_220208.pdf. Retrieved 2008-04-06. 
  3. ^ "Northern Rock sale announced by chancellor". BBC News. 2011-11-17. http://www.bbc.co.uk/news/business-15769886. Retrieved 2011-11-17. 
  4. ^ "Liquidity Support Facility for Northern Rock plc - Tripartite Statement by HM Treasury, Bank of England and Financial Services Authority". Bank of England. 2007-09-14. http://www.bankofengland.co.uk/publications/news/2007/090.htm. Retrieved 2008-02-20. 
  5. ^ "Northern Rock to be nationalised". BBC News. 2008-02-17. http://news.bbc.co.uk/1/hi/business/7249575.stm. Retrieved 2008-04-08. 
  6. ^ "Rock recovery is Sandler's goal". BBC News. 2008-02-18. http://news.bbc.co.uk/1/hi/business/7249858.stm. Retrieved 2008-02-20. 
  7. ^ "Bradford & Bingley plc and Northern Rock (Asset Management) plc" (PDF). UKFI. 2010-03-24. http://www.ukfi.gov.uk/releases/20100324%20Press%20Release%20NR%28AM%29%20and%20B&Bv2.PDF. Retrieved 2010-03-24. [dead link]
  8. ^ "UK Sets Holding Co For Northern Rock Asset, Bradford & Bingley". Wall Street Journal. 2010-10-01. http://online.wsj.com/article/BT-CO-20101001-704126.html. Retrieved 2010-10-16. 
  9. ^ "Northern Rock returns to profit". BBC News. 2010-08-03. http://www.bbc.co.uk/news/business-10848374. Retrieved 2010-08-03. 
  10. ^ "Northern Rock 'bad bank' pays £1bn". Press Association. 2010-10-01. http://www.google.com/hostednews/ukpress/article/ALeqM5gawoq21GUVVI1kP2An0iS9iXLrrg?docId=N0032341285933500089A. Retrieved 2010-10-16. 
  11. ^ "Half Year Results 2010". NRAM. http://www.n-ram.co.uk/~/media/Files/N/N-RAM/content/results-presentations/nram-half-year-results-2010.pdf. Retrieved 2011-09-18. 
  12. ^ "Senior appointments: Holding Company of NR(AM)-B&1". Northern Rock (Asset Management) plc / Bradford & Bingley plc. 2010-04-09. http://companyinfo.northernrockassetmanagement.com/investorrelations/news/viewFeedarticle.aspx?id=376387311532926. Retrieved 2010-04-09. [dead link]

External links

Coordinates: 55°00′37″N 1°37′34″W / 55.0104°N 1.6260°W / 55.0104; -1.6260


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