Phil

I guess at worst I will have a new mortage holder soon

PeteBrant

I think most savers with substantially less than that will be thinking the exact same thing.

"Ok, it's a remote possibility, but is it worth the risk?"

The Zohan

Quite!

Paul3446

If I had any money in there it would be out straight away, why take the risk?

You only have to look at Equitable Life to see that if you have money in when they go under, you don't have a leg to stand on.

The Snug Rhino

yes - but less than that and they are offered protection NOT applicable to sums over that.

The Snug Rhino

money in a with profits investment fund is NOT money in a bank account.

apples and pears.

PeteBrant

Sure, but would the average Joe be sitting there thinking "Oh it's ok, I'm protected, i'll get my money back - eventually". Or will he be thinking "Bollocks to this, I'm not ****ing around with my life savings, protection or not"


I know what I would be thinking.

The Snug Rhino

you are right - people with no understainding of the issues beyond those spoon fed to them by Sky News in bold font will go and get their cash.

Paul3446

And they are perfectly entitled to do so, let's face it, banks hardly have a reputation for being honest, do they!

PeteBrant

Yeah, what complete idiots they are being overly cautious with the product of a lifetimes' work.

billythekid

Almost, its £31700 as its 90% of upto 33k and 100% of 2k.

fast bloke

So would you leave it there and risk losing what could be a couple of months wages, or spend an hour shifting it somewhere else. (I feel a 'possibility of a meteorite' conversation coming on )

^Qwerty^

Queue of people outside the Leeds branch this morning. Most of them were of the older generation.

If nothing else, it's stupid to stand outside the branch because if you ever wanted to mark yourself out as a robbery target, that's how to do it. You may as well carry a big sign saying, "I've just withdrawn a load of cash from NR"

Mind you, I suppose the average Leeds CC druggie would still be in bed at that time.

what would scooby do

regardless of the risks involved you'd just get your money out - common sense

billythekid

I would be asking for it in a cheque as I expect the local idiots will be hanging round looking to releave someone of cash.

OllyK

Do NR not do internet banking? Just do a transfer to another account with another bank, job done

Petem95

Glad I pulled all my savings out of NR about 10 days ago when things were starting to look very shaky for NR!

I think the chances of them going under a slim, but with everyone panicing and pulling their cash out it could really hit them! Few guys in work here with mortages with NR really panicing today!!

davegtt

Why?

rossyboy

iTrader: (8)

Why? It wont affect them. If NR go under, the debt will be bought by some other lender on the same terms....

I have one with them. Isn't worrying me.

davegtt

What good will the cheque be on Monday morning if they folded? Not that I think they would but good question Im sure you'll agree

The Snug Rhino

......of course, because thats how we all live our lives. Could you get killed crossing the road to buy a paper...yes, so why do it? Because the risk is so small that its worth if for the pleasure of getting your paper.

For me, the risk of NR losing any savers cash is so small as to not be worth my going to town to switch my account......after all, if i did i may get hit by that bloody meteorite

The Snug Rhino

common sense...i owe them £270k ish......maybe next month i'll owe £270k to someone new, i really dont care.

Chris L

It's not stupidity - it's fear and a lack of confidence - perhaps driven through a lack of understanding of the finer parts of the banking system. Perhaps the stupidity quotes should be directed towards the senior management of NR who have caused this situation by basing their mortgage lending largely around interbank lending and not deposits - poor fiscal policy bites you on the **** eventually.

The Snug Rhino

OMG....just watched the news (while having a lovely stuffing and chicken sandwich from last nights tea...yummy) anyway - Sky showed HUNDREADS of folk queuing outside the bank!!! I thought it was all a bit exaggerated on the websites but no, they really are rushing down to take out their cash!???!!?

NR sell money, they get it from other banks and give it to us at a higher rate - their supply source has been limited so, in order to safeguard their ongoing lending, they ask First Plus/BOE for a hand. How exactly do people think that situation will lead to them ceasing to trade? It pretty bloody obvious what borrowing from the BOE at stupid % does for profits so we know why the share price tumbles.....but why are people jumping to the "it will crash" conclusion?

Some old dear just now said "ahhhh...they say it will be ok but they said that about mad cow disease in beef burgers and look what happened there" - righty ho........says it all!

I am tempted to pop to Natwest and HSBC and draw out wads of cash from both while yelling at the NR que "QUICK QUICK...these guys are going down to"

ChrisB

I read somewhere their site is down / creaking very badly under the strain of people with on-line only accounts...

Paul3446

I don't get why people with mortgages would be worried, surely they have already lent you the money and you are paying them back?

People who should be concerned, are ones with savings not debts.

Petem95

GOLDMAN 555

This is going to affect the housing market as a whole as Northern Rock is one of the biggest mortgage lenders.

They are probably not going to collapse however their business is going to be damaged significantly.

They aren't going to be issuing many mortgages right now that's going to take almost a quarter of the liquidity out the housing market.

Whatever happens the housing market is finally looking very shaky in this country.