Northen Rock [Merged Threads]

marks87

Classic self-fulfilling prophecy.

A bank run is by far the easiest way to put one in trouble...and what better way to cause a bank run that to say it's already in trouble?

Those people in the queues need to hurry up and see sense.

[Deleted User]

dippy wrote: »

And what if the bank goes bankrupt and the administrators take control?

If administrators took control the 125%ltv, bad credit, subprime high multiples market would be sold off to provident financial or ocean finance and the <90%LTV <4X normal mortgages would be sold to HBOS, RBS or HSBC etc

There are no major concerns for anyone with a mortgage. Those with money on deposit have a risk of losing 10% upto 35K and everything thereafter. Shareholders will simply lose everything if it goes upside down and have the most to risk, hence why the stocks a hot potatoe at the mo.

[Deleted User]

purch wrote: »

Clearly you are less aware than you think !!

The Bank of England didn't fill up a wheelbarrow with freshly printed Banknotes, and wheeled it around to Northern Rock :eek:

........ anyone with even a tiny amount of knowledge on the subject would know that money is not just 'created' by printing more notes !!!

I never said it printed more notes, I said it created it. By means, electronically after printing bonds.

http://video.google.co.uk/videoplay?docid=-9050474362583451279&q=money+as+debt&total=1205&start=0&num=10&so=0&type=search&plindex=0

altyfc

I have 2 questions and I'd be really grateful for replies if anyone knows the answers:

1) if NR were to go bust, how quickly could it potentially happen?

2) I understand that:

If you have up to £35,000 on deposit then you would, in the event of insolvency, get back all of the first £2,000 in your account and 90% of the next £33,000. That would be a total of £31,700 per person in compensation, or to look at it another way, a loss of £3,300.

This is presumably what applies to individuals who have savings. What about company savings accounts? Does the same apply?

Thank you.

[Deleted User]

altyfc wrote: »

I have 2 questions and I'd be really grateful for replies if anyone knows the answers:

1) if NR were to go bust, how quickly could it potentially happen?

2) I understand that:




This is presumably what applies to individuals who have savings. What about company savings accounts? Does the same apply?

Thank you.

If the run on the bank continues and its former friends ie other banks fail to help it out. Theres a remote possibility trading could be suspended on its stock next week, administrators declared as the directors.

For every £1 it doesnt have theres £10 of loans it can not back.

Please see the BBC q+A i posted and the mse q+a

altyfc

PauliPauli wrote: »

hmmm... well currently earning 5.74% on their business reserve account, think I'll move funds above £33k to hsbc (business savings) via chaps monday morning at 5% until dust settles, just for peace of mind

Having read this post, I called HSBC and apparently they stopped doing the 5% account last month. It frustratingly seems you can't get half-decent savings accounts for company savings, only personal savings.

D_e_n_i_s_e

for the first time in a long time i feel the need to invest about 1k in NR. if the FSA and the UK Govt are standing by NR then in my books its a safe bet.

i cant see or understand why so many people are pulling there monies out.
Being FSA protected means you'll get most if not all of your money back within certain saving thresholds.

this wouldnt be the case with say Tesco or BP or Vodafone who if they were to have this problem would go bust as they have no backup measure.

In my opinion this is a definate overreaction and im predicting NR will still be in business 12 months from now and with a healthy share price in a more northern territory than it is in today!

ramborai1987

i feel the same denise. its worth investing 1k now. the city has been pumping millions of pounds in them at the final 30 mins of trading because they have confidence in them. there was some trades bought as high as 50mill and 25 mill pounds.

If the city workers have confidence in them im sure that'll rub off on other people.

this is only a short term lapse that led to people panic selling and hopefully it will correct itself in the future

[Deleted User]

Apparently a company called victoria mortgage has recently been declared bankrupt, KPMG are the administrators... I dont fancy NRs chances the momentum is all one way now.

ramborai, born in 1987 it shows your a long way off knowing how to invest, what your talking about is throwing a dice, you might as well be in a casino. There are loads of companies on the exchange that id value as being 2 or 3 fold underprice, the city is typically working off incredibly out of date information and a whole lot of speculation and trend analysis, it will make its money in a day and be away before it hits. You as a private investor need to aim long term where there is little uncertainty, otherwise youll only ever lose out. The government and teh other banks will permit NR to go bankrupt if they need to in order to preserve themselfs.

As ive said many times before, high geared companies and credit do not touch with a 60ft barge pole right now. A smart investor would wait and see what happens, wait until the december results are known and if they arnt bankrupt by then youd be buying at 5.50p on november the 1st and be safe in the knowledge you arnt losing 1K in its entirety but still make money.

PauliPauli

altyfc wrote: »

Having read this post, I called HSBC and apparently they stopped doing the 5% account last month. It frustratingly seems you can't get half-decent savings accounts for company savings, only personal savings.

got offered the HSBC business deposit account out of the blue a while back... .... NR's business reserver rate was def well above competition, still got it open so when dust settles who knows although their admin on it was abysmall, seemed like they had no "systems" in place in their office !!