Northern Rock Crisis Article Discussion

horsepills

These brainless idiots queueing up outside branches of Northern Rock should be given ASBOs. :mad:

Mary Davies, 86, summed it up perfectly:

"I think these people are bloody stupid," said Miss Davies, gesturing at the throng stretching up the street. The pensioner had come to her local branch as she does every Saturday to pay £25 into her savings account and to deposit a cheque.
"If the Bank of England is willing to stand by Northern Rock, why are these people worrying about their measly savings," she railed. "If there is a crisis, it is people like these that will have caused it.
"It's like panic buying in the war - it just makes things 10 times worse..."

I feel sorry for Northern Rock staff, who now face an even more uncertain future because of these mindless buffoons.

skaff

gt94sss2 wrote: »

No government will ever do that, even if they mean it because they will lead to people also assuming they will be 'rescued' whatever banks do - and such a commitment would have to be extended to all banks - and some banks will start doing really stupid things..

However the Chancellor has now 'staked his reputation' that NR will remain solvent. That is probably the most reassuring statement yet. Not because we trust him, but because politicians don't stick their necks out like that without seriously checking their facts first!

gt94sss2

Yes I was wrong..

The government has just promised to guarantee all existing deposits at Northern Rock

Regards
Sunil

WinnieJ

I have read thorugh all these but am still confused (sorry if these have been answered) but I am stressing as I am going on holiday Fri and need to decide what to do...

1) Existing mortgage with NR at fixed rate until Dec 08. Buying new house and have new bigger mortgage + £30k loan agreed in principle and now need to send application off. I heard NR may only honour almost complete mortage applications....is this true? Will they honour ours if still at application stage? Did BoE only lend them money to keep existing loans going or to enable them to take on new mortages (or extend current ones)?

2) Will house prices now drop? (Will be be buying at the peak?)

3) Are interest rates going to go up or down?

Thanks
Confused Winnie

MG26

I have read Martin's article on Northern Rock and my questions are about the protection for savings accounts.

1. I understand about joint accounts but what if you also have single accounts as well, is the protection per account of per account holder?

2. Does it only apply to savings accounts, I have an interest bearing current account with A&L as well as more than the compensation limit in various savings accounts with them.

Hope the questions are clear enough and have not already been asked but the thread is becoming long, perhaps just one on the protect scheme would be useful?

Mal

barak

:j

gt94sss2 wrote: »

Yes I was wrong..

The government has just promised to guarantee all existing deposits at Northern Rock

Regards
Sunil

So now those of us who didn't panic have safer deposits than all those who did! [I don't blame them though!].

PauliPauli

gt94sss2 wrote: »

No government will ever do that, even if they mean it because they will lead to people also assuming they will be 'rescued' whatever banks do - and such a commitment would have to be extended to all banks - and some banks will start doing really stupid things..

The depositors might be safe and Northern Rock a good/solvent business but that doesn't mean the share price will go up.. another bank may buy it for a price lower than its shares are currently trading at (or it could be higher) - thats a risk you take when investing in shares.

Regards
Sunil

"no goverment will ever do that" hey ... time to buy euro's ?????

worldtraveller

gt94sss2 wrote: »

Yes I was wrong..

The government has just promised to guarantee all existing deposits at Northern Rock

Regards
Sunil

LINK: BBC News

DIESELDOG_3

My girlfriend and i have signed a fixed rate mortgage with Northern Rock just before all this panicking happened.
My question is this where do we stand if the bank comes back and changes the rate of interest to that of a higher rate,will we be able to pull out if that happens or does the bank have to honour our agreement.

StevieJ

barak wrote: »

:j So now those of us who didn't panic have safer deposits than all those who did! [I don't blame them though!].

Ironic.

It seems that NR is as safe as the Bank of England,

Buy