Northen Rock [Merged Threads]

[Deleted User]

dunstonh wrote: »

Purch, get them on to m1 or m4 money supply and see how they handle that!

You mean the fact that the money in circulation is currently in UK and USA creating a high creating inflationary effect and thus the BOE really does need to raise interest rates higher to reign in this.

These high interest rates are whats causing the problem for NR since the margins on the products are down, thus banks are hoarding their own money to keep their margins reasonable and the bank liquid and theres definatly not enough margin lending at the BOE rate + 0.85% thus profits will suffer heavily. If things dont lighten up by nov 1st im not holding hope NR could continue. The bank runs will make things worse.

Who knows...

munk

caveman I believe you're covered for 100% of first £2000 and 90% of the next £33000 - ie £31700

The maximum levels of compensation are:

* Deposits: £31,700 per person.

100% of the first £2,000 and 90% of the next £33,000.

http://www.fscs.org.uk/consumer/key_facts/Limitations_of_the_scheme/Compensation_Limits/

Regards a bargain to be had in purchasing shares in NR, will the price fall much lower and will there be enough time until the price is reinflated with people already jumping on the bandwagon and pumping money in? Crystal ball anyone :P

gt94sss2

caveman38 wrote: »

Questions to you guys in the know.
If NR are aquired by another institution. Would all savings be safe and worth 100% what they are now.

Yes

If NR were to go under with no buyout or assistance. Would the FSA safety net return all my £30K or £27.2K (by my calculations)

You will be covered under the FSCS limits - at the worst, the Bank of England will ensure that Northern Rock is 'sold' to another bank... even its only for £1 which is what Barings was sold to ING after its problems..

Regards
Sunil

gt94sss2

ceebeeby wrote: »

I've read Martin's news update ... our NR mortgage which is variable rate discounted to BoE rate is due to end in June next year. Should we sit tight for the time being (watchful waiting) ....?

Yes - no need to do anything at the moment..

Regards
Sunil

Ivan_Konstantinov

alared wrote: »

Well done

You must be the bravest man in the country or the daftest.

nope not a foo,they wont go broke so little savings will be safe...made some money on their shares:beer: as i pointed out on 09-09-07 http://forums.moneysavingexpert.com/showthread.html?t=547819

luxor4t

We repaid our loan today - 10 months early - so they now have a few thousand pounds!

maypole

Geoffo M

It was Dr Willem Buiter being interviewed and the words he used are, " in a few days they ( NR ) will be absorbed by a larger competitor with deep pockets".

I just watched the interview again on the net.

slipthru

maypole wrote: »

Geoffo M

It was Dr Willem Buiter being interviewed and the words he used are, " in a few days they ( NR ) will be absorbed by a larger competitor with deep pockets".

I just watched the interview again on the net.

I hope this is the case, i don't want to lose my money because of the painicking people.

RayWolfe

Ivan_Konstantinov wrote: »

paid in a cheque today for GBP287.00 & only 2 peeps in front of me :j

Don't expect that sight to be in the media, it doesn't make "exciting" news.

caveman38

I get the feeling from what I've read in the press, that if NR are taken over then their liabilties ie. savings would be safe only as a result of FSA safety net. There isn't any mention of the new company covering the whole amount of the savings. Therefor only 31.7K is safe. Am I panicking for nothing?