Whats N/Rock playing at

LongTermLurker

fatpig wrote: »

I said implicit. If you'd listened to the various government utterances you'd know this. And do you honestly think they'd let a UK bank fail? What happened to HBOS last week shows what will happen the next time any UK bank into trouble..

And there is the point - the government's statement that no one will lose money is now obviously built around the premise that if a bank gets close to collapse, the government will offer them at a reduced cost to another bank/building society rather than risk having to use the FSCS, which wouldn't be able to cope. In a way, that was a clever idea by the government, to make it sound like the FSCS could cope and then simply claim "extreme circumstances" and ensure that the test of the FSCS reserves never arises.

Stavros_3

Just_landed wrote: »

I went looking for the info I read on a website this afternoon but could not find it ref post 12 so while I was on NRs site I found info ref you are covered, a BIG SORRY is in order.

No need to apologise my friend, we are all on a learning curve in the current financial minefield. I am one of the most laid back persons you could ever wish to meet, but until the banking sector settles down, I am taking all my eggs out of one basket

Sapphire

As a matter of fact, I went into Northern Rock yesterday and there were several people there opening their fixed rate bonds, plus one old boy transferring money to NR because he was worried about the financial situation. The woman I spoke to said there had been massive interest in the bonds, hence they were oversubscribed, apparently.

LongTermLurker

casper_uk wrote: »

http://www.express.co.uk/money/view/62494/Rock-to-default-on-bond-interest-

Typical

Northern Rock’s equity holders are already suing the Government for nationalising the bank in February.

If the government hadn't nationalised NR the equity holders wouldn't have any equity - silly ar*es! I hate this "who shall I sue today" mentality :mad:

LongTermLurker

Sapphire wrote: »

As a matter of fact, I went into Northern Rock yesterday and there were several people there opening their fixed rate bonds, plus one old boy transferring money to NR because he was worried about the financial situation. The woman I spoke to said there had been massive interest in the bonds, hence they were oversubscribed, apparently.

Note your reference to "fixed term bonds" has nothing to do with the bondholders in casper's post - that highlights the danger of calling deposit accounts "bonds". I appreciate you might not be thinking they are, but someone else might.

fatpig_2

LongTermLurker wrote: »

NS&I - government owned = 100% protection

NR - government protected (for the time being) = 100% guaranteed (this is a special situation)

All other UK banks who are registered with the FSCS = 100% of the first £35000

All remaining European banks, operating in the UK under the Passport Scheme = FSCS protection for the amount greater than what the bank's own country's scheme will cover, and less than or equal to £35000

As Stavros says, not all UK banks are the same.

From today's FT:

http://www.ft.com/cms/s/0/c4570180-8805-11dd-b114-0000779fd18c.html?nclick_check=1



Alistair Darling, chancellor of the exchequer (finance minister), said last year after the run on Northern Rock that the government would guarantee every penny of savers’ money, not just at the Newcastle lender but at every other bank.

Stavros_3

fatpig wrote: »

Alistair Darling, chancellor of the exchequer (finance minister), said last year after the run on Northern Rock that the government would guarantee every penny of savers’ money, not just at the Newcastle lender but at every other bank.

Did he say that? if he did where is it written that all deposits above the 35k in uk banks/BS are protected, because this is what the FSCS states are the protection levels.
http://www.fscs.org.uk/consumer/faqs/deposit_claims_faqs/

fatpig_2

Stavros wrote: »

Did he say that? if he did where is it written that all deposits above the 35k in uk banks/BS are protected, because this is what the FSCS states are the protection levels.
http://www.fscs.org.uk/consumer/faqs/deposit_claims_faqs/

He did say it. And as the FT have reported today, he is on public record as having said it.

And I can actually remember myself when he said it during the N Rock crisis, it applies to any level of deposit.


Alistair Darling, chancellor of the exchequer (finance minister), said last year after the run on Northern Rock that the government would guarantee every penny of savers’ money, not just at the Newcastle lender but at every other bank.

every penny = all deposits in anyone's book I think. I don't really know how he could have made it any clearer