Northern Rock Crisis Article Discussion

Spad_2

I don't fully understand this financial stuff so could somebody offer advise please. Would it be wise to start putting in excess of 35K back into NR again.. From what I read they will safeguard any amount if the worst happens.
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Thanks

Mr._Nice

harryhound wrote: »

What is more, even if the loan is a mortgage, you have almost certainly signed a clause saying the loan is repayable on demand;

While that may possibly be true for some mortages, it certainly isn't true for mortages in general. Mine for example can only be "repayable on demand" if I lied on the mortage application or fail to keep my obligations under the mortages (which of course includes not defaulting on payments, or selling or otherwise allowing someone else to have a security or interest in the property), or am declared bankrupt.

baby_boomer

Spad wrote: »

Would it be wise to start putting in excess of 35K back into NR again.. From what I read they will safeguard any amount if the worst happens

And when the guarantee is withdrawn you'll want to transfer at least part of it out again.

So why give yourself two unnecessary transactions?

baby_boomer

Right on cue in today's

Times

Chancellor Darling puts pressure on NR to end crisis and emphasises that the government guarantee is not indefinite.

harryhound

Mr._Nice wrote: »

While that may possibly be true for some mortages, it certainly isn't true for mortages in general. Mine for example can only be "repayable on demand" if I lied on the mortage application or fail to keep my obligations under the mortages (which of course includes not defaulting on payments, or selling or otherwise allowing someone else to have a security or interest in the property), or am declared bankrupt.

and if the bank you borrowed the money from went bust ?!?

baby_boomer

This is Money - Rock crisis is not going away

The government has committed £21bn and this is expected to rise to £30bn. That's more than the defence of the realm.

"...the bank's shares, which at their peak traded at £12.50, have now fallen to just 180p and are almost certainly worthless...."

"...A Labour administration, which promised the nation financial stability, finds itself engaged in the biggest rescue loan operation of modern times, with the bill increasing by billions with each passing week.

Yet, in the long term, it dare not offer open- ended assistance to the Rock or its buyers because such a decision would leave it accused by more prudent banks of rewarding one foolish rival (of course based in Labour's North-East heartlands) with subsidies.


Moreover, ministers also risk the ire of the European Commission, which frowns on 'state subsidies' for failing industries or financial institutions...."

bristolleedsfan

baby_boomer wrote: »

"...the bank's shares, which at their peak traded at £12.50, have now fallen to just 180p and are almost certainly worthless...."

i"

yip i read that article as well, was going to post in thread where marky D poured scorn( :mad: )on my posting which relayed articles suggesting that northern rock shares may be worth anything from nothing up to 90p should virgin take northern rock over.

marky D described authors of such articles as "muppets". :rolleyes:

baby_boomer

And don't forget that dunstonh thought that the government hadn't had to lend any money to NR and, even if it had, it wasn't a problem as the more the government lent, the more extra interest us taxpayers supposedly got in return.

bristolleedsfan

baby_boomer wrote: »

And don't forget that dunstonh thought that the government hadn't had to lend any money to NR and, even if it had, it wasn't a problem as the more the government lent, the more extra interest us taxpayers supposedly got in return.

reminds of the saying ( me now thinking in relation to forum postings) " quality not quantity"


my suspicion was that markyD merely feels he has to comment on every post posted and in my case derives some kind of perverted pleasure in issuing a negative response to my posts.

http://forums.moneysavingexpert.com/showthread.html?t=574733&page=2

rainy_dave

Sad to see a previously strong building society come bank now valued at less than £1bn

http://www.igminvestmore.com/news/northern-rock-in-early-talks-with-number-of-firms.html

For what it's worth, I think it would be difficult for any takeover to result in a share price of more than £1 per share. Personal opinion only. If Mr Flowers and his friends get their hands on the Rock it could be an awful lot less!

Watching with interest.