Manchester: No repossessions by Northern Rock
Northern Rock is repossessing homes and kicking families out on the streets twice as fast as any other bank in the country. Nationalised banks should be run in the interests of working people not stealing their homes and making them destitute.
Back last November when Northern Rock faced collapse and queues of worried savers stretched around the block, Gordon Brown’s Labour government stepped in to nationalise the bank, guaranteeing its deposits.
Now, as thousands of mortgage holders are threatened by repossession and negative equity, when asked why Labour was allowing Northern Rock to aggressively evict families, Gordon Brown said, “ministers did not run the business.” So they own it but they don’t run it. What’s going on?
Northern Rock's repossession rate in the first half of 2008 was double that of the industry as a whole 4,201 seized homes, up from 2,215 at the end of last year.
Northern Rock says its use of repossessions is not "overly aggressive", claiming repossession is only ever a "last resort". They are lying.
Northern Rock says it is "well ahead" of its government loan repayment target, having paid back more than half of the £26bn it owed, to leave £11.4bn outstanding as at September 30.
Instead of bailing out fat cat capitalists and businessmen Gordon Brown should use the nationalised banks to keep families in their homes. The housing crisis is going to get much worse. Across the country 18,900 homes were repossessed in the first half of this year, up by 50%. During the last housing crash in 1991 repossessions reached 75,500.
Meanwhile Northern Rock is busy sacking its staff, more than 1,500 Northern Rock workers have lost their jobs since nationalisation, including 800 compulsory redundancies.
John McDonnell, the Labour MP, socialist and supporter of the Convention of the Left said: "We fully nationalised Northern Rock, yet the government's bank is becoming the most ruthless repossessor under the cosh of government pressure to repay the loans. The government needs to come up fast with a 'recession-proof' strategy of halting repossessions and converting mortgages into homes for social rent."
The banks should be nationalised now without compensation to City financiers and run by and for the interests of working class people - not the capitalists. Any family faced with eviction should have their home nationalised, transformed into a council house and let back to them at a reasonable rent. Empty second homes and buy to let flats should be transformed into council homes for low rents to meet housing need. And private tenants need to be given secure tenancies, so landlords looking to cash in their profits can’t kick them out.
Mon 03, November 2008 @ 21:33
discussion of this article
Arthur Bough said…
Tue 04, November 2008 @ 16:22
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Arthur Bough said…
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