Northern Rock Crisis Article Discussion

ZTD

Reestit_Mutton wrote: »

(2) It's misleading to say that the loan facility is "literally unlimited", as you put it

It is absolutely unlimited. It is limited only by political considerations - which means it is not limited at all. If the BoE phoned up the Royal Mint and said "Print me some bank notes with a face value of £1,000,000,000,000,000,000,000,000,000,000,000" then it would be done. See Zimbabwe for examples - did you imagine we are different?

Reestit_Mutton wrote: »

- it has to be backed by prime collateral that isn't already used as collateral for other forms of debt. In NR's case, that currently equates to about £30bn (about 25% of their asset base).

No. Just print it.

Fiat money - don't you just love it?

ZTD

harryhound wrote: »

Have they been taking wholesale money and dealing in SIV's (parcels of dodgy loans)? I think we should be told.

But you won't be. The whole idea of using SIVs is to keep it off the balance sheets - delibrately so you can't find out.

Until GAAP changes, then you won't find out until a collapse.

ZTD

mystic_trev wrote: »

I'm not sure the Government can do this as it seems to breach EU Regulations

Since the money would go to the general public, rather than the firm - I don't think it will be.

WinnieJ

WinnieJ wrote: »

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

Anyone?
Also does Certificate of Mortgage Agreed in Principle consititute a mortgage offer?

Thanks
Still Confused Winnie

digitaltoast

I've got no shares in anything, hence no sharedealing account.

I've tried a couple of places and they say minimum 3 working days

Let's say I only want to buy £250, but obviously want to do it today, can anyone recommend? And please feel free to PM me if it's not allowed to recommend things "publicly".

Thanks!

ukdutypaid

You couldn't make this up.... Job advert...

"Operational Risk Manager" For you know who.......32k as well.. You'd want at least double that and danger money. Never mind "onsite parking"

Hahahahah

Other one on the bbc was the IT Director of Northern Rock, only IT director in the with experience of an online banking meltdown.... Boy will he be in demand.... Errr, what for overseaing a China Syndrome and he then gets a name your price job... hahaahaha

There ain't no justice, there's just us...

nitefoll

I have a fixed rate mortgage with Northern Rock that expires May 2008, I was considering selling my current property in May 2008, but with this "crisis" I'm unsure now. Should I consider selling now?

Q: Will the current situation in the US markets and the knock on effects we're feeling now in the UK have further knock on effects, in particular a slump in the UK property market (i.e. will I still get as much for my property if I sell it now rather than wait until next year?)

Any info would be much appreciated.

Many Thanks

skorpio40

Havnt any real interest in the Northern Rock situation,,, just came across this. Sorry if its been posted allready.

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2007/09/rock_cant_be_sold.html

bigg

If one person holds several accounts of £35,000 each, is every account protected against a crash seperately or, is only one account protected?

MarkyMarkD

FSCS protection is limited to £31,700 (£2,000 + 90% x £33,000 = £31,700) on each account.

But given that the government are now guaranteeing 100% of all savings in Northern Rock (and any other insitution hit by the present crisis), the point is somewhat academic.