Northern Rock Crisis Article Discussion

Orpheus_2

Hi,

I live in the Philippines so am unlikely to get a letter of reassurance any time soon..

My money is in Northern Rock in Guernsey. Do you have any info to suggest that these funds are also covered by the Treasury guarantee?

thanks..

Orpheus

isofa wrote: »

I assume most people with accounts in NR have received the reassurance letter this morning. So in case you haven't, I'll reinterate some of the points which may be helpful...

All accounts existing at midnight on 19/9/07 are Treasury guaranteed,
as are all new deposits made into those accounts.
Future interest payments and movements of funds between existing accounts - again all covered by the Treasury guarantee.
All accounts closed and reopened between 13/9/07 and 19/9/07, covered by the Treasure guarantee.

Any new accounts opened from 20/9/07 will be protected in the normal FSA way.

Orpheus_2

Thanks so very much for pointing me to the press release by the Guernsey Financial Services Commission. I have been worried sick that depositors outwith the U.K. could be left out in the cold and the Press Release:A is completely reassuring. Northern Rock Guernsey should post it on their website..

Paper_Money wrote: »

The guarantee does include NR Guernsey. There is a press release on the Guernsey Financial Services Commission website. It writes "..HM Treasury has informed the Commission that the deposit of Northern Rock Guernsey with its UK parent plc is included within the Chancellor's guarantee as an existing wholesale deposit and therefore the assets of Northern Rock Guernsey are covered by the Chancellor's commitment."

bazz_iiii

For your information on the guarantee for Northern Rock Guernsey

look here

http://www.gfsc.gg/content.asp?pageID=421

hope this helps

regards

bazz

baby_boomer

dunstonh wrote: »

The BoE offered an overdraft facility should NR need it and if they did [b_b which they did for £3bn], the taxpayer would have done well out of it due to the rate being above LIBOR. You could argue that as NR hasnt drawn on that facility, the taxpayer has lost out.

Having pointed out where dunstonh was talking out of his backside [i.e. NR used the BofE facility when dunstonh said it hadn't] I should point out where dunstonh was correct.

The borrowing facility was at 6.75% (giving the BofE a nice profit).

Interbank 3 month loans have now fallen to around 6.32%, which may explain
a) why no other bank has used the BofE facility and
b) why top savings rates have slipped in the last week or so.

old_codger1

Thus may have been asked before but, just as a matter of interest how many people on here have paid money back into NR?

baby_boomer

Why do you ask who has paid money back into NR? It was the wrong thing to do and remains the wrong thing to have done.

People can read the thread above to find that out, without having to own up to their mistake. I doubt you would get a truthful or representative response in the circumstances.

dougs

baby_boomer wrote: »

Why do you ask? It was the wrong thing to do and remains the wrong thing to have done.

Sorry, I'm a bit lost now. What is/was the wrong thing to do?

old_codger1

dougs wrote: »

Sorry, I'm a bit lost now. What is/was the wrong thing to do?

LOL

Well, quite. If the guy doesn't want to answer just don't answer. TBH he sounds like one of these people that drive in the middle lane of the motorway at 50mph because, 'that's quite fast enough'.

dougs

baby_boomer wrote: »

Why do you ask who has paid money back into NR? It was the wrong thing to do and remains the wrong thing to have done.

thanks for clarifying your question. However I'm still unsure as to why you think it is such a wrong thing to do, with the govt. guarantee in place. Some people may want to return money to NR whilst the guarantee is in place, as it means their money is as secure as it could be, and be concerned that you have information that could/should worry them about doing that. So if you have any concrete reasons for it being such a bad idea it would be really helpful to people if you could voice them. Thanks.

luv_my_brass

baby_boomer wrote: »

Why do you ask who has paid money back into NR? It was the wrong thing to do and remains the wrong thing to have done.

People can read the thread above to find that out, without having to own up to their mistake. I doubt you would get a truthful or representative response in the circumstances.

One certainly can't be blamed for wanting to protect their hard earned cash, and those who withdrew their savings from NR have hopefully been shopping around for a better interest rate on their savings. Thanks to the information on this excellent site, I had been looking at the interest rates of other Savings Providers anyway, and was ready to move when things looked a bit hairy at NR. It was also a timely reminder not to keep all one's eggs in one basket. So no, unless NR can come up with a great deal for savers, I will not be returning my savings to NR. I still have some savings with them and my isa's, so haven't abandoned them altogether.