Northen Rock [Merged Threads]

dippy

nilrem wrote: »

Frankly I despair that people still believe that their cash with NR is not safe, in actual fact money invested with NR is probably safer than the cash moved to other institutions, primarily because NR are the only ones who have full BOE backing!

TBH I really don't see what else the Government or bank can do, if people don't trust the backing and word of the BOE!

What does "full BOE backing" and "the backing and word of the BOE" really mean?

Tommaso46

< my students will ABSOLUTELY be taught about the Financial Services Compensation Scheme>

Rather, you should teach them that housing should be a civil right, not a market.

[Deleted User]

Tommaso46 wrote: »

Rather, you should teach them that housing should be a civil right, not a market.

Im sorry but I dont agree, housing is built from effort of manwork, materials that in turn require a hell of a lot of resource to run, gas, electricity and water and even more manwork to resource.

This is obviously a luxury and is not a basic human need, perhaps you need to visit africa, china, india, the icecaps to see that it is not a human need. Why should other people do all the work so that people of no benefit to society can gain?

I think those that are in the position of getting this luxury for free should be thankful to their superiors for throwing them a gold plated bone. They are lucky our soceity is so kind and generous, england is heaven on earth.

LOST

dippy wrote: »

What does "full BOE backing" and "the backing and word of the BOE" really mean?

BOE - Bank of England, they are stepping in as lender of last resort.

FSCS - Financial Services Compensation Scheme - cover upto 100% of the first £2000 and 90% of the next £33,000 upto a maximum of £31,700.

I would not be bothered about withdrawing any money if I had less than £2k with NR as it is 100% protected by the FSCS - but compensation would be a lenghty process!

dippy

LOST wrote: »

BOE - Bank of England, they are stepping in as lender of last resort.

The terms under which the BoE has agreed to extend a credit line to NRK have largely not been revealed, except that they are lending at the "punitive rate" of 5.75% + 1% (they are not a charity). The amount and expiry date of that credit line AFAICS have not been revealed.

gt94sss2

tightfisted wrote: »

The banks do not trust each other because they know the truth about the unknown debts 'out there'.

Actually the banks are not lending to each other because they know what they own but don't know what other banks own..

Regards
Sunil

[Deleted User]

Hello

I received the info second hand, that you had not mentioned that only 90% was refunded from first ~£35000 - but since she is always right, i shan't doubt her!!!!

Why does no one belive FSA staements - because they stated in leaflets etc that company pensions were guaranteed.
When a statement is made by government misnisters, there are always the same old words troted out. It never sounds like a statement made by someone who cares or fully understands what is going on.

[Deleted User]

Flynn wrote: »

Yet I assume you believe the statement on all banknotes that says "I promise to pay the bearer X pounds"?

You have lent your money to NR and they in turn have lent it out to others, just as all banks do. NR lend money to house-buyers secured by the property. You get interest from them and they get interest from the house-buyer. No money has been lost, the houses are still there, and they are solvent.

I am not sure what the relevance is of "Yet I assume you believe the statement on all banknotes that says "I promise to pay the bearer X pounds"?"
I have no money with NR.

The reason NR are in trouble is because the banks/hedge funds did not just lend or invest in fixed amounts money. The investments were levereged and split into so many parts that the banks only believe the Bank of England and not each other.

steve_IOW

The News has just been on BBC news 24

tipsychick

Maybe Gordon is going to go for an October election after all. David Cameron was on "This Morning" earlier too!