Northern Rock Shares Collapse
14 September 2007, 10:07 AM
#3
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Be interesting if a sort of "Collapse Hysteria" of the Maddie/Diana type occurs and investors take out their savings on mass. But I am sure the media will take a sensible approach 
dl
dl
14 September 2007, 10:19 AM
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Stupid stupid people. As mentioned on another thread the BoE would not be lending to NR if they thought it was going to collapse into a bottomless hole
Seems like a good time to keep an eye on their shares and when they bottom out buy a shed load!
Seems like a good time to keep an eye on their shares and when they bottom out buy a shed load!
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14 September 2007, 10:24 AM
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14 September 2007, 10:28 AM
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I'm not so sure......... The Old Lady had little choice but to prop them up yesterday. But they are hardly likely to say "Of course if everyone pulls out then we'll carry on pumping money in". dl
14 September 2007, 10:30 AM
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And when Equitable Life went through a similar crisis, assurances about savings were made.
And then, some people lost 000's.
Once bitten twice shy I reckon.
14 September 2007, 10:34 AM
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My advice is simple if you have more than £35,000 in savings with Northern Rock. Get it out now....... you are only guaranteed up to £35,000 after that you're on your own.
Forget the Bank of England rate the average tracker mortgage rate is around 7.5%.
Imagine if you had got fixed rate mortgage in 2004 2005 you going to have a big shock when you suddenly get your mortgage increase by 30%.
There is a reason none of the other banks want to lend to Northern Rock they are not stupid
Forget the Bank of England rate the average tracker mortgage rate is around 7.5%.
Imagine if you had got fixed rate mortgage in 2004 2005 you going to have a big shock when you suddenly get your mortgage increase by 30%.
There is a reason none of the other banks want to lend to Northern Rock they are not stupid
14 September 2007, 10:36 AM
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I was listening to the report this morning as well.
14 September 2007, 10:39 AM
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I agree and my comments were based on not realising they had so many customers panic closing accounts this morning. Do these customers not realise what the BoE did yesterday? It doesn't seem like it, more a case of scaremongering and rumours going round and closing accounts on this rather than what the BoE and FSA advise/are doing about the situation.
Just get transferred to a new lender?
14 September 2007, 10:51 AM
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If all these folks are turning up to grab their £5k (or more) to stuff under the mattress, how many branches of NR (or any bank/BS for that matter) carry enough cash to cope with that level of withdrawals in a days?
I was under the impression that an average branch didn't carry much cash, hence needing to arrange with them if you wanted to withdraw a large amount of cash.
I was under the impression that an average branch didn't carry much cash, hence needing to arrange with them if you wanted to withdraw a large amount of cash.
14 September 2007, 10:51 AM
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I think if NR was going under they would sell off any debts owed to them to other lenders. Not sure if everything would stay the same regarding payments etc though, shouldnt imagine much would change but I have about 8k still owed to NR so wouldnt mind for that to disappear if that were the case 
14 September 2007, 10:51 AM
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If I had more than 35k in NR I would be moving the surplus out. I would rather move it and not lose it than let in sit there with the slim possibility it could disappear by Monday.
14 September 2007, 10:52 AM
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If all these folks are turning up to grab their £5k (or more) to stuff under the mattress, how many branches of NR (or any bank/BS for that matter) carry enough cash to cope with that level of withdrawals in a days?
I was under the impression that an average branch didn't carry much cash, hence needing to arrange with them if you wanted to withdraw a large amount of cash.
I was under the impression that an average branch didn't carry much cash, hence needing to arrange with them if you wanted to withdraw a large amount of cash.
14 September 2007, 10:54 AM
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14 September 2007, 10:58 AM
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LMAO - The BoE have offered NR a 'liquidity support loan at a premium'
That sounds like the sort of thing Ocean Finance do. Maybe all the directors can get a new car and go on holidays now
That sounds like the sort of thing Ocean Finance do. Maybe all the directors can get a new car and go on holidays now
14 September 2007, 11:02 AM
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It is protected (all bar £300 of it) and when was the last time you heard of a mainstream UK bank going bust? NR have plenty of assets - they are in for some lower profits but nothing worse.
