Northern Rock Crisis Article Discussion

bristolleedsfan

rainy_dave wrote: »

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

should be remembered that northern rock wasnt a particularly big building society, its only strong points was that it was extremely lean and well run.

northern rock as a building society was one of the worst offenders alongside scarborough and chelsea for keep launching new savings accounts which rapidly became mediocre as they were superceded by newly launched best buy rate savings accounts.

northern rock ( as a building society) launching a new savings account product was as certain as night following day. :rotfl:

rainy_dave

bristolleedsfan wrote: »

its only strong points was that it was extremely lean and well run.

And perhaps it ceased to be so when it scaled up from North East building society to national bank, perhaps there lies the root of its recent problems. Well, that and the low % of its balance sheet provided by savings as already mentioned is no doubt a large factor.

bristolleedsfan

rainy_dave wrote: »

And perhaps it ceased to be so when it scaled up from North East building society to national bank, perhaps there lies the root of its recent problems. Well, that and the low % of its balance sheet provided by savings as already mentioned is no doubt a large factor.

not true reason the city loved northern rock ( hence its mega high share price by february 2007) was that it was extremely lean well run and had a very successfull business plan, "had" being the operative word.

reason for northern rocks downfall have been well documented in articles that have been linked in threads.

northern rock PLC could hardly be described as a "national bank" :rotfl: http://www.yourdictionary.com/national-bank