Northen Rock [Merged Threads]

harryhound

Nick_C wrote: »

Tesco Personal Finance is a division of Royal Bank of Scotland (Natwest).

Sainsbury's Bank is a division of Halifax/Bank of Scotland

Something to bear in mind if concerned about the guarantee offered if an institution collapsed - Tesco/RBS is the same institution; HBOS/Sainsburys is the same institution (I'm talking about the Banks, not the supermarkets!)

It would be interesting to know the exact legal rights and responsibilities between Tesco & RBS and similarly Sainsbury & HBOS; personally I would keep it simple and cut out the middle man.

I think the important thing is cash cash cash at the moment; so aim to keep your wad in an organisation with good retail cash flow = invest in the grocers' Christmas saving plans:D

Seriously though it looks like B&B is next in the firing line? Stick with a clearing bank, that has not expanded its mortgage business greatly in the last 12 months.

Where is Nationwide in all this - can an insider help out?
I know someone who is thought to have taken them for 2 million in the last big shake out, but that was only when the house price bubble had collapsed.

Nick_C

harryhound wrote: »

It would be interesting to know the exact legal rights and responsibilities between Tesco & RBS and similarly Sainsbury & HBOS; personally I would keep it simple and cut out the middle man.

To quote from their web sites:-

Tesco Personal Finance is authorised and regulated by the Financial Services Authority. TPF is entered in the FSA's Register and its Register number is 186022. Tesco Personal Finance Limited is a joint venture between The Royal Bank of Scotland plc and Tesco PLC. Tesco Personal Finance Limited is a member of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000.

Sainsbury's Bank is a member of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. Sainsbury's Bank plc is a joint venture with 50% of the share capital owned by the Governor and Company of the Bank of Scotland, a subsidiary of HBOS plc. Sainsbury's Bank plc, St Andrew's Life Assurance plc and St Andrew's Insurance plc are connected companies as the ultimate parent company of St Andrew's Life Assurance plc and St Andrew's Insurance plc also has shares in Sainsbury's Bank plc.

Ian_W

Interesting quote for those slamming NR's irresponsible lending blah, blah:

"Despite the funding problems, there's no doubt that the operational side of the business is excellent, and arrears on its mortgage book are about half the industry average, so there are definitely good parts," said James Irvine, an analyst at Dresdner Kleinwort.

Nick_C

Well, the volume of trades keeps going up, and the share price keeps falling. Down to £4.65 at 14:15 (opened at £6.39).

http://shares.telegraph.co.uk/telegraph/security.cgi?csi=10258&action=prices&sub_action=activity&username=&ac=

Its looking tempting, but I'd only buy with money I was prepared to lose.

isofa

Say they drop to £3 a share and then finally stabilise (over whatever period of time), then another group/bank makes a successful takeover bid, how would the NRs shares be reallocated by the purchasing company, or would they just buy them off everyone at the value when sold, or does it differ each and everytime?

cm233lh

cm233lh wrote: »

I just walked past their Moorgate branch. There were TV crews outside interviewing people who were standing in a very long queue out of the door and down the street. I offer no other comment.

I just went back past the same branch. TV crews all gone. Queue's gone too. Perhaps it was a bunch of film extras paid to make a news story.

PauliPauli

talking about B&B ... compared to NR what is their "cash deposits against loans" ratio compared to NR. Always viewed B&B a proper bank and no way as morally bankrupt as NR NR always seemed to stretch definition of the word "bank" to me? If their is a run on B&B, I'll have to take my ISA out normally losing all ISA allowance built up over last two years I'm thinking of doing it now just for the "peace of mind"

goshdarnit

Yant1 wrote: »

Tesco IS royal bank of scotland, and sainsburys IS halifax bank of scotland

They may be in the same group of companies, but if they have been set up correctly I don't think RBOS will fold if Tescos go broke.

[Deleted User]

purch wrote: »

The Bank of England is not spending a penny 'propping' up Northern Rock....in fact they are making a tidy profit as NR is paying a hefty 'margin' for the funds they are borrowing.

Yep any money the BOE creates will be from absolute thin air whereas the banks need to keep 10% money for an extra 90% of thin air. Its a strange system but inevitably seems to cause this money pyramid that collapses as confidence collapses, but if these are reinvested at other banks can create up to a 100:1 loans to money ratio. :beer: I liken it to pyramid selling which is unlawful under any other means. The other banks are foreclosing loans to each other, this means its going to be very very expensive for NR to maintain its mortgages so even if it survives its going to have to make its products expensive to make up for it so those that can ditch will do and those with 125% ltvs and bad credit will pay the price with 10%+ mortgage rates and will be forced to sell up crashing the housing market.

Any one for pimms?

Crabman

In case anyone hasn't noticed it yet:

MSE Northern Rock comment