rach 1 Posted September 18, 2007 Share Posted September 18, 2007 Anyone on here unlucky enough to have savings with Northern Rock in the UK? Happily not me but I know of a few people. A lot of turmoil at the moment and scary when you think your savings could potentially just go up in smoke. Quote: On Labour's blackest economic day since it came to power, Gordon Brown sought to end the run on Northern Rock by pledging to prop up the beleaguered bank. As worried customers continued to besiege branches and two other banks wobbled, he performed a dramatic U-turn to guarantee the £24 billion saved with the Rock would be repaid if it went bust. The fear inside Government was that if the run on the bank had been allowed to continue, it could have been Labour's 'Black Wednesday moment' - a reference to when the Tories were shamefully forced out of the exchange rate mechanism in 1992. But amid turbulence on the stock exchange, there was little hope that the worst is over. Previously, Northern Rock customers were guaranteed to be compensated only for up to £ 35,000 of savings if the bank collapsed. I wonder how stable the Japanese banks are. Link to post Share on other sites
thursday 1 Posted September 18, 2007 Share Posted September 18, 2007 Interesting development that is having many repurcussions worldwide. More will follow as there are about 3 million mortgages in the US up for renegotiation next year. NR may be smashed apart and gobbled up by HSBC Link to post Share on other sites
Tubby Beaver 209 Posted September 19, 2007 Share Posted September 19, 2007 The thing about the NR problem is that people are panicking and withdrawing all their money because they think NR are in danger of going under. BUT that actually isn't the case, they only asked the BoE if and when the time comes, could they get a loan to prop themselves up and the BoE agreed, which as I understand it only underlines the fact that NR wouldn't go under as the BoE would only offer this facility to a bank which is still a viable entity. But with everyone panicking and withdrawing their dough, then their is now a chance that NR could go under. Interestingly the UK government has guaranteed everyones savings, as another shot in the arm supporting the fact that NR is still a safe and trustworthy company Link to post Share on other sites
spacefrog 0 Posted September 19, 2007 Share Posted September 19, 2007 good time to buy NR shares. Link to post Share on other sites
Tubby Beaver 209 Posted September 19, 2007 Share Posted September 19, 2007 yeah, you said it Spacefrog!! They have halved in price from over 4 pound per share to just over 2 pound per share. Most likely to keep falling as people are still withdrawing money. Pity I don't have a spare couple of grand lying around!! Link to post Share on other sites
spook 0 Posted September 19, 2007 Share Posted September 19, 2007 with everyone withdrawing their funds, i wonder where they will be storing their money? my bet is that most of them hide the cash in their ovens Link to post Share on other sites
thursday 1 Posted September 19, 2007 Share Posted September 19, 2007 The government is guarenteeing EVERY bank. Now how the hell can they do that? There's not enough money in the treasury to do that. Link to post Share on other sites
spook 0 Posted September 19, 2007 Share Posted September 19, 2007 they can just just print more! Link to post Share on other sites
thursday 1 Posted September 19, 2007 Share Posted September 19, 2007 They can't. Gordon Brown has sold the presses together with the gold reserves. Link to post Share on other sites
spook 0 Posted September 19, 2007 Share Posted September 19, 2007 oh well, IOUs will suffice... i was confused about the long lines of people outside the northern rock branches - why not just use the internet to transfer your cash? Link to post Share on other sites
Tubby Beaver 209 Posted September 19, 2007 Share Posted September 19, 2007 lets face it Spook, the type of people who are twitching it about their money probably aren't the type to have computers in their house, remember this is Britain, where a stupid percentage of the country still haven't got Internet access. Well Thursday, they have : http://news.bbc.co.uk/2/hi/business/6999615.stm the government have said they will guarantee all deposits made to Northern Rock Link to post Share on other sites
thursday 1 Posted September 19, 2007 Share Posted September 19, 2007 yes, they have said they'll guarantee it, I'm saying they have not got the wonger to do it. Empty promise. Link to post Share on other sites
spook 0 Posted September 19, 2007 Share Posted September 19, 2007 just like a lot of political promises then! Link to post Share on other sites
Tubby Beaver 209 Posted September 19, 2007 Share Posted September 19, 2007 my bad! Link to post Share on other sites
thursday 1 Posted September 20, 2007 Share Posted September 20, 2007 too right your bad. Now spankies and stand in queue. Link to post Share on other sites
Recommended Posts