Northern Rock Crisis Article Discussion

molly_mandy_2

When you enter the Northern Rock website you currently get a full page written guarantee.

Until this changes, that is the guarantee that I believe.

mandm65

mummycarol wrote: »

BUT in today's Daily Mail money page it says, along with other things, that investors could lose a cut of their savings.

I see this possible if a new purchaser made an offer & that offer can determine whether investors gain or lose!

mean_momma

queues formed cos of media hype, up until two years ago nobody would have even known if a bank had asked the BOE for a emergency funding facility.[/quote]


Thank goodness that we are now privy to that information, and good on the media for hyping it up! This whole scenario has highlighted the vulnerability of saver's funds. With luck, as a result banks will clamp down on their cavalier attitude 'liar mortgages' and savings will be guaranteed beyond the current pathetic £2000.

bristolleedsfan

mean_momma wrote: »

Thank goodness that we are now privy to that information, and good on the media for hyping it up! This whole scenario has highlighted the vulnerability of saver's funds. With luck, as a result banks will clamp down on their cavalier attitude 'liar mortgages' and savings will be guaranteed beyond the current pathetic £2000.

the financial compensation scheme has always been well publicised, here is an example at random from yorkshire BS website.

http://www.ybs.co.uk/savings/investor_protect.jsp

what hasnt been publicised is that a uk bank or building society might go bust, this is because a uk bank or building society will never go bust, northern rock was never going to go bust and wont go bust so the queues were due to media hype not because savers were at any risk of losing their savings,

Ian_W

mandm65 wrote: »

I see this possible if a new purchaser made an offer & that offer can determine whether investors gain or lose!

Investors, as in shareholders - YES.
Savers, as in account holders with savings - NO!

rebeccaj

JayTee99 wrote: »

No, not Abbey. From your description they sound pretty awful, glad they weren't on my list

I've since found quite a lot of adverse reports about the (lack of) customer service at Abbey so yes, definately one to avoid I think.

isofa

Wouldn't touch Abbey with a bargepole personally, I've never had such poor service from a company in my life.

purch

This whole scenario has highlighted the vulnerability of saver's funds

....it's amazing that people still havn't a clue :eek:

barak

Fat_Girl_Slim wrote: »

In a recent newspaper article on 'who owns who' Legal & General was shown as being owned by Northern Rock. If Northern Rock saving are now covered 100% - i.e. beyond the FSCS £35,000 limit - does the same apply to Legal & General customers?

Mr Mumble has already pointed out that Legal & General is not owned by Northern Rock.

I suspect that you were referring to the fact that Legal & General's Mortgage and Deposit Account business previously known as 'Legal & General Bank' was sold to Northern Rock in 2002, so any deposits transferred from L&G to NR would now be covered by the current guarantee.

For further info. from L&G see http://www.legalandgeneral.com/help-pages/nr-help.html

CDRputtick

Am I wrong in thinking that if a Company of which Northern Rock is, goes broke then all of the Accounts and assets are frozen until the Liquidator has investigated the company affairs and no amount of guarantees will allow the liquidator to pay out until the investigation is complete? Surely, this will take many years to achieve. Meanwhile no funds will be available to savers.