Citigroup(C) might save Northern Rock from private equity bargain hunters
Posted by: in Financials and AnalyticalsFiled under: Financials and analyticals, Value and lack thereof, Public or private?, J.C. Flowers
The blind leading the blind. U.K. mortgage bank Northern Rock has nearly gone under. If it were not for funds provided by the government, it might be gone already. But Northern Rock is still looking for help. In a twist of irony, that aid might come from Citigroup (NYSE: C), which has its own problems with mortgage instruments. The huge U.S. bank stated its earnings would drop 60% for the last quarter, some due to mortgage securities to write-downs.
According to a report in The Telegraph, there are many options being weighed to save Northern Rock. “One possibility being discussed by the Government and the company would see Citigroup, the U.S. bank advising Northern Rock, provide a funding line of up to
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