Should I close my Northern Rock Account?

webdeepak

I really can't understand we now agree that this ank is less profitable.
Secondly, its share price has fallen 50% over past 7-8 months.

And still falling, even though we have just see the tip of the iceburg of subprime.

Have we not seen the german banks go bust. Yes we have.

And also what I don't understand why if it has not happened before, its not likely to happen in the future attitude. Its like head in the sand attitude.
Not based on facts just predictions and past history.

ManAtHome

No - we've seen a German bank being bought, not going bust.

Banks are not the same as your average business - as already stated, you have a guarantee limiting any potential losses. If you have substantially more than £35k invested, get moving some of it. If you have £2k invested, you have a 100% guarantee (although this has never been tested as failing banks are generally bought out, eg ING buying Barings).

If major banks really do start going bust (no potential buyers) - time to invest in guns and ammunition...

webdeepak

Just to add more information today again Northern Rock fell by 3.03% ( 21p) the second biggest looser today.
You can see when the whole market is green what is red and big RED.
Is there something the market knows and we don't

MarkyMarkD

No, there isn't.

The stock market almost always over-reacts to bad news. And then share prices creep back up towards where they should have been all the time.

butch_dingle_2

so just to confirm , in a purely hypothetial scenario

If a bank goes bust and I have 200K in there, i will lose it (or at least most of it)

If a bank goes bust and I owe it 200K, I will still have to pay it back.


thats nice and fair, eh ?

Rafter

Northern Rock is finding it tough at the moment, because it uses the money markets to borrow most of the money it needs for lending on mortgages and loans. Because of the situation in the US, investors are very nervous about taking on more of these 'mortgage backed loans'. As a result northern rock is having to pay more to borrow which reduces its profits. However it has a long way to go before it goes bust.

butchdingle..

If you have more than £35k invested in a UK regulated bank then you won't get anything above £35k back if the bank goes under.

The only reason the savers wouldn't get their money back is if the mortgage holders and other loan holders didn't repay their loans.

Your savings in UK banks and building societies are only as secure as the people they have lent the money too. If you are worried about a massive housing crash or recession then you should invest in gold or government savings.

R.

webdeepak

today's fall 24.50p 3.65%
http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23193/twelve_month.stm

This account has not turned into my danger list. A little more fall all money is coming out of it.

webdeepak

Funny, what I could see and other could not.
Check out the following link http://news.bbc.co.uk/1/hi/business/6994099.stm.

And now all the guys who responded and with respect should stop responding and giving people incorrect advice.

If you don't know about things its not such a bad thing to keep shut.

BlightyAndy

webdeepak wrote: »

Funny, what I could see and other could not.
Check out the following link http://news.bbc.co.uk/1/hi/business/6994099.stm.

And now all the guys who responded and with respect should stop responding and giving people incorrect advice.

If you don't know about things its not such a bad thing to keep shut.

Calm down, i can't see Northern Rock Going Bust!
As others have said, if it gets serious enough it has to close, it will just sell on to some other bank.
And Remember... Pls be nice to all MoneySavers.

webdeepak

Andy Gray, thanks for your response.
But I will say again if it hasn't happened before does not mean it can't happen again.

I must say that I started this forum after a month of contemplating and see Northern rock's share prices which was a week ago, before any smart boy 'financial journallist' even had a hint of this. Tomorrow you will see all these so called intelligencia say it all.

And in today's market I can tell you. No one will buy Northern Rock. They will let it go bust and buy it from the administrators. Hence bigger - better bargain. No debtors only creditors.

And for moneysavers, there is nothing wrong in keeping shut when you know nothing about the subject. You are merely misguiding other people. Because when you open your mouth and speak about the subject you know nothing about. You tell me what comes out of ones' mouth...?