Northen Rock [Merged Threads]

sdooley

xanadu2 wrote: »

Northern Rock – shares and an equity release mortgage.


My inclination is not to sell shares for so much less than they were previously worth, but to sit it out, because I can finance my purchase by other means, and wait for Northern Rock to recover.

This is the classic trap all small shareholders make. The shares will not go up again just because they were previously worth more. If you have required equity release to purchase your home you are not wealthy and cannot afford the risk of losing the shares value entirely.

If you want to have a bit of a chance in the stockmarket, you should sell your direct shares and but a collective investment like a unit trust or investment trust. Most will accept investments from as low as £1000.

aardvaak

Has anyone on here actually withdrawn their money from NR?

PBA

caveman38 wrote: »

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?

If they're taken over without going bust, the company buying them would take over your savings, ie they would be totally safe. You would simply have a savings account with XYZ bank rather than Northern Rock.

If they did have to call in administrators then it's possible that the business would be sold off piece by piece. However I think it would be very bad business for a bank to take over their branch network but not the customers. Given that anyone taking them over would be looking to add branches and gain customers, they wouldn't want to be seen to stitch up the Northern Rock customers who they'd then be trying to lure back.

purch

If NR are aquired by another institution. Would all savings be safe and worth 100% what they are now.

YES

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.

Rubbish !!!

If Northern Rock is bought by another Institution then they would take on all of NR's assets and liabilities

isofa

Ivan_Konstantinov wrote: »

nope not a fool,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

Couldn't agree more, he's not daft or stupid, he's engaged his brain, unlike the hoards of idiots queuing up at branches.

equitydealer

If Northern Rock offered a new savings account/bond at 7.25% I'd be happy to make a deposit

FF99

There will be enormous pressure from the BoE on the whole financial community (including the Clearing Banks) to make sure that NR does not go under. On the weekend that Barings went down there were lines of black limos parked outside the BoE as the most senior executives of all the other banks were called in. The Chancellor was also thowing his weight around behind the scenes. Barings could not be saved, only because nobody knew what its liabilites were and therefore the banks were being asked to write a blank cheque which they could not do. That does not apply to NR !

purch

If Northern Rock offered a new savings account/bond at 7.25% I'd be happy to make a deposit

Wouldn't be surprised if they do soon !!!

I don't think enough of general public actually realise, or think about what they are doing whenever they make a deposit into a savings account, or even a current account.

They are lending that institution money, it's not kept in that drawer under the cashiers desk until you want it back.

Do you think Northern Rocks assets are good enough to guarantee the return of your funds.

If you think they are, then lend them the money.

If you think a large percentage of their assets will default then don't.

caveman38

Thanks, I just wanted reassurance. I have more invested than the safety net would compensate for. I do not want to withdraw my money which is in a bond as it would lose a lot of interest as a penalty. The problem is just being an ordinary joe public and seeing that the local SE branches (which there a only a few) were open till 8 last night and today have extended their hours because there is again a 2 hour queue.
It does start to make you think come Monday you may be the only saver left - I know that's daft, but I'm only human.

purch

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

I blame Greenspan for all this...( who cares if personal debt is trillions :eek: of dollars, as long as the economy keeps growing :T )

He was lucky, his predecessor Paul Voelker slayed the 'inflation' beast, and Greenspan got all the plaudits, when all he did was ride the wave of Global Growth that kept the developed worlds inflation low. Everyone thought Greenspan :A was a 'genius' and followed his mantra.

The 'beast' is starting to stir again, and with money supply so out of control throughout the world how are they going to keep it quiet ????

P.S.

Your not scoring many points right now, if you dont know how money is created and dont know about as above...

Now I'd be really pathetic if I posted on a forum in order to score points........get a life !!!