Northen Rock [Merged Threads]

old_codger1

lartin_mewis wrote: »

NR are still on target to make about £500m profit by year end aren't they?

More a liquidity problem than a solvency problem surely

That's exactly what this is. You can't compare this to a business that has lent money unwisely and expects to be paid back for some unfathomable reason.

roddydogs

mk-donald wrote: »

FYI: NR's online Silver Savings a/c system was at 5:30pm today Saturday:
(a) letting one log-in instead of just saying 'too busy, try later' as on all previous attempts
(b) working responsively/normally once logged-in

you must be lucky ive been trying all day still gtting the "busy" bit

old_codger1

Yant1 wrote: »

Based on old figures and data, this debacle will cost them a lot of money and its going to severly dent profits im afraid.

To say the share is a buy because of the p/e, profits etc is all based on estimates made when the markets were as they were. The figures now given that the markets are as they are wont be released.

Think about it, one day you could borrow at a interbank rate rate from japan at 2.5% the next day teh markets are closed and you need to borrow from the BOE at 7%. The city knows it thats why the markets opened on friday with an enormous bulk of short sales.

Bad news for house prices as mortgages will need to be at least 9% within a year. Plus I think theyll be stopping subprime business.

Possibly, but none of that alters the fact it's a liquidity issue.

aleph_0

nearlyrich wrote: »

I can't understand the panic either it's completely crazy, the bank protection scheme covers each account for about £20k, today's Daily Mail was full of glum looking pensioners who had been queing for 6 hours to draw out their £5000. No doubt it's all now stashed under the bed.

For completeness: FSCS protects 100% of the first £2k, then 90% of then next £33k. But otherwise, I totally agree. I also wonder how many people will actually remove cash from their ISA in the panic.

KTF

I feel really sorry for Northern Rock in all this. With any luck they will launch a high interest account in a few weeks to try and get some of the cash back

old_codger1

roddydogs wrote: »

you must be lucky ive been trying all day still gtting the "busy" bit

Try pressing F5 a few times on the pop-up logon screen. I've just done it and it worked fine.

trubster

old_codger1 wrote: »

Try pressing F5 a few times on the pop-up logon screen. I've just done it and it worked fine.

I still cant get online

nearlyrich

Thanks aleph_0 I never had that much in a bank in one account so the actual figs never were that relevant to me.

I wonder if all the people selling their shares will buy them back when they go back up?

aleph_0

nearlyrich wrote: »

Thanks aleph_0 I never had that much in a bank in one account so the actual figs never were that relevant to me.

I wonder if all the people selling their shares will buy them back when they go back up?

No problem. I probably should have also stated that is per institution, not per account.

Probably. They'll probably follow the herd and buy at the worse moment :P

oshoshitzu

nearlyrich wrote: »

I can't understand the panic either it's completely crazy, the bank protection scheme covers each account for about £20k, today's Daily Mail was full of glum looking pensioners who had been queing for 6 hours to draw out their £5000. No doubt it's all now stashed under the bed.

All those pensioners panicking, I wonder how some of them managed in the 2nd world war.