Northen Rock [Merged Threads]

nilrem_2

caveman38 wrote: »

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.

IMHO you are probably have your cash saved with the safest bank in the world ATM, fully backed and guaranteed by the BOE and British Government!:)

FWIW the very fact that NR stayed open late and continued to pay out ought to reassure people but then I imagine a lot of the people in the queues are the of the same ilk who queued for Toilet Paper when they heard a rumour that it was going to be in short supply!:eek:

Flynn_2

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?

The Northern Rock is now probably the safest bank in the world. Yesterday you had the Chancellor of the Exchequer putting his reputation on the line by saying that savers were safe. That makes NR deposits as good as gilts and the government will make available whatever is needed.

That's not to say that NR won't be taken over. It almost certainly will because its reputation has been damaged and that's now the only way to restore long-term confidence.

PosterBoy77

There seem to be loads of people poppoing up here who seem to be able to tell us what NR has or has not been doing, how healthy its business is and how well run it is. None of us can really know. The news we have been told is almost certainly the most positive version which can be portrayed.

A business that cannot stay in business without a big loan from the BOE is certainly not healthy. In fact if it were any other business except a bank, it would have had to call in the administrators by now.

It has had to borrow from the BOE as no other bank was prepared to lend it any money. Why should the public be expected to keep their savings with a bank that other banks don't even trust? It is not as if they pay any higher rates of interest than other banks.

PosterBoy77

Flynn wrote: »

The Northern Rock is now probably the safest bank in the world. Yesterday you had the Chancellor of the Exchequer putting his reputation on the line by saying that savers were safe. That makes NR deposits as good as gilts and the government will make available whatever is needed.

That's not to say that NR won't be taken over. It almost certainly will because its reputation has been damaged and that's now the only way to restore long-term confidence.

The governemt gave rover a loan to let it stay in business, and investors invested in railtrack because it was heavily government backed. Neither of these companies survived, so just because a minister says something, does not mean I would trust what is said.

The BOE has given it an unlimited line of credit. However, who is to say that if more information came to light about the business not being as good as it appeared that it would not be withdrawn? Nobody knows. My advice is do what you feel you need to do to protect your own interests, as nobody else will.

molly_mandy_2

caveman38 wrote: »

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.

I was thinking that too caveman :eek: Oh well, just the two of us

:rotfl: :rotfl: :rotfl:

PosterBoy77

slipthru wrote: »

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

Get your money out now then, there is nothing stopping you - yet!

chris1

mikael wrote: »

Get your money out now then, there is nothing stopping you - yet!

Er, yes there is - no online access!

molly_mandy_2

chris1 wrote: »

Er, yes there is - no online access!

I got into my online a/c this morning chris

roddydogs

Update 1147 Website still "Busy"

Flynn_2

mikael wrote: »

The governemt gave rover a loan to let it stay in business, and investors invested in railtrack because it was heavily government backed. Neither of these companies survived, so just because a ministers says something, does not mean I would trust what is said.

The BOE has given it an unlimited line of credit. However, who is to say that if more information came to light about the business not being as good as it appeared that it would not be withdrawn? Nobody knows. My advice is do what you feel you need to do to protect your own interests, as nobody else will.

I just can't believe how daffy some people are. Do you seriously think those are comparable? This is a liquidity problem.

At no time did any politician guarantee the survival of Rover or that shares sold by a previous government would make money. On the other hand the Chancellor has said that NR savings are safe. If necessary he would spend a bit of our money to ensure what he said is right but he almost certainly won't have to. No politician is daft or generous enough to end his career by making promises without needing to. (Note that saying savings are safe is not the same as saying NR will not be taken over. It probably will be.)

Next we'll have some plonker comparing NR to Lamont's Black Wednesday fiasco. :rolleyes: