The nationalised bank, Northern Rock is still experiencing financial problems. This is mainly due to an increase in toxic debt. With many people loosing their job they are no experiencing problems paying their mortgages and many are defaulting on them.
It is very hard to exactly predict the looses that they will make as there plan going forward is to be a major lending engine in the UK. This is different from their original plan which was to pay off the huge debt they owe the government.
The Northern Rock plans to lend £5bn and £14bn over the next 24 months. With these plans in store they are going to have to slow down payments made back to the government. Although that said since last year when the loan was made to NR from the government they have paid back over a third of the debt.
The government is now applying to the European Union to run as a state owned business and the Chief Executive of NR, Gary Hoffman is supporting this application.
There is no doubt in anybodies minds that hard times are upon us and are not about to end soon. We can expect to see many changes with all the banks over the coming years, but apart from that it is hard to predict exactly what will happen with the banks including the Northern Rock.