Northern Rock - Anyone got any dosh in there?

All deposits have been guaranteed by the government today. Will it make any difference? Will people stop withdrawing their life savings? Who are the financial experts on this forum?

A big chunk of my pension. But I can't get it out until I'm 65 so there's no point worrying.

Worst case is that Lloyds or someone will buy out NR. Their share price has fallen from 1200 to 200, so I expect this will shortly happen.

Their outstanding loans will be dispersed equally between the big 5 banks - whilst the rest of the company is either sold off as a job lot - or broken up and then sold.

Either way - there's no way back for NR.
Got too ambitious - some would say greedy - as the smallest of what was once, the big 6.

Nationwide will do nicely.
100 pct Building Society - no thrills, no spills and no added costs like you come across in the high street banks.

Merlin wrote:Their outstanding loans will be dispersed equally between the big 5 banks - whilst the rest of the company is either sold off as a job lot - or broken up and then sold.

Either way - there's no way back for NR.
Got too ambitious - some would say greedy - as the smallest of what was once, the big 6.

Nationwide will do nicely.
100 pct Building Society - no thrills, no spills and no added costs like you come across in the high street banks.

Aye, you never know, someone some day might reinvent the traditional Buiding Society.

Keep it under the bed.

It'll be worth peanuts in 20 years anyhoo

"Northern Rock - Anyone got any dosh in there?"


Not any more.

BTW - I heard that the BoE were bailing them out more than they were required.

If so, I don't think that is a good thing. It will just encourage future excessive risk taking knowing that the goverment will bail you out if things go pear shaped.

JGK wrote:BTW - I heard that the BoE were bailing them out more than they were required.

If so, I don't think that is a good thing. It will just encourage future excessive risk taking knowing that the goverment will bail you out if things go pear shaped.

Was'nt the NAB looking to buy it?

JGK wrote:BTW - I heard that the BoE were bailing them out more than they were required.

Giving them a loan so they can create new business, I think. but the investors have taken about £2Bill out so that's no good.

NR are history - it's just a matter of time now.

Wonder if Newcastle United will get their NR sponsorship dosh after all this dies down!

They're giving them a loan so that they can continue functioning day to day, not so they can get new business. I think it's safe to say that Northern Rock will not be getting any new business for a very long time to come, and nor can they afford to acquire any seeing as their primary business is lending money.

Most banks survive on massive amounts of credit and would probably be in a lot of trouble if all their loans were called in at once. It's therefore hardly surprising that this operating philosophy has been passed on to the general public, leading to more and more people finding themselves living beyond their means and unable to cope with the ensuing debt.

In short, banks are evil and people are stupid.

A fool and his money are soon parted!

So how long have you been broke then?

bliksem wrote:So how long have you been broke then?

Never

JGK wrote:BTW - I heard that the BoE were bailing them out more than they were required.

If so, I don't think that is a good thing. It will just encourage future excessive risk taking knowing that the goverment will bail you out if things go pear shaped.

Very true in principle. I have not followed this closely, but I think the reason the BoE and Gov are doing it is to try to prevent a total collapse of the banking system. I heard the explanation of  why the other banks are at risk, but I've forgotten it.

[quote="doctorspin"]

JGK wrote:BTW - I heard that the BoE were bailing them out more than they were required.

If so, I don't think that is a good thing. It will just encourage future excessive risk taking knowing that the goverment will bail you out if things go pear shaped.

Very true in principle. I have not followed this closely, but I think the reason the BoE and Gov are doing it is to try to prevent a total collapse of the banking system.
I heard the explanation of why the other banks are at risk, but I've forgotten it.[/quote]

One very good reason to stash yer cash under the floor boards, doc ... per JKL's suggestion above!

PS The banking system wouldn't collapse, it's just that individual banks would see their share values stripped raw and recovery thence will be long and arduous - with the clients picking up the hefty tabs and interest rates rocketing to over 10 pct within weeks.

Don't trust banks and mulit-national companies, they are evil. Power is a rich mans son.

Hide your money under the bed, or just spend it when you have it.