They are finished - breaking news

robnye

there is no way NR are about to collapse, they actually have one of the highest amounts of cash on the high street - from savings.......

the problem they had was raising more money to issue as mortgages......

tr3mor

Jennifer_Jane wrote: »

The whole Northern Rock fiasco of confidence has impacted on me because it's helped bring down sentiment in all equities.

You can't single out sentiment impacting on you for inducing falls when it was sentiment that created the bubble in the first place.

Remember, the value of equities can go down as well as up!

WTF?_2

Debt_Free_Chick wrote: »

Some of us thought it didn't amount to much, anyway



You don't think the FSCS is sufficient for savings up to the limit of the protection it provides?

If there's a chance that the bank holding my cash could go bust then no. Getting 90% back from 35k and potentially losing everything above that is not adequate. Especially since getting the money back will take an indeterminate amount of time and require reams of form filling. What happens if I need the money in the meantime?

I believe even the BoE Governor just admitted (before the Commons Select Committee) that it was rational to want to withdraw your money once the run started.

Debt_Free_Chick wrote: »

It would never have been needed. It was a PR stunt to restore confidence in the savings market, in general, and with NR in particular

Which is another reason why, if I had savings with NR, I would have went ahead and withdrew them anyway.

Debt_Free_Chick wrote: »

It seems that no-one is allowed to review a situation, in the light of changing circumstances and then do something different to what was done a couple of weeks ago.

Would it have been acceptable for the BoE to have done nothing?

The point is that the official line has been 'no bailouts except in exceptional circumstances, no general shot of liquidity to the market' for a number of weeks. Literally overnight, that changes.

Now, if they'd changed their minds a couple of weeks ago the whole NR thing would likely not have been an issue.

So either the BoE made an horrifically wrong decision which eventually put the whole banking system in jeopardy before being reversed

or

Their new direction is politically motivated by the government interfering in their supposedly independent affairs

or

Some nasty new evidence of trouble ahead has emerged that has required a U-turn of mammoth proportions.


I think the public deserve to know.

CB1979_2

i thought this was about Chelsea, now that Mourinho has left! :eek:

Snow_Dog

NekoZombie wrote: »

Complete misrepresentation: I hope the OP isn't a seller on ebay :eek:

More like a HPC/GHPC poster - standard practice = take one negative news report, select the worst part even if that part is speculation from an unnamed source, then announce it loudly on forum as certainty/fact.:D

Repeat process for any number of years (4 and counting) until proven right.;)

lypsey

Rob , you say "there is no way NR are about to collapse"

Think about this:-
1) Any new saver will have no interest at NR because they are NOT guaranteed from the Government. They will go elsewhere
2) Anyone looking to take a mortgage will NEVER walk through the doors . The threat of total collapse will put them off and competition is massive
3) The Government will only guarantee TOTAL cover for a limited time , what do you think is going to happen after say 8 weeks . They can only guarantee for a short period due to EU competition laws. If you were the chairman at Barclays or HSBC , I can gaurantee you one think I would be phoning the BoE every five minutes . The Government can't protect them forever and pressure will come from other banks
4) The stockmarket may bankrupt the company before savers/borrowers have a say. They were 6 quid last week and today they are 2 quid. Hedgefunds are selling shares they don't own. I read on Friday that 50% of their shares changed hands and 20% of that 50% were traded by hedge funds gambling the shares would be lower. Any company (even if it is a FTSE100 share) can go bankrupt . If the shares go to a pound by next week do I really need to explain what is going to happen . This company is leveraged like no other bank in the UK . Do I really need to explain what is going to happen next
5) Money from savings accounts will be steadily with drawn , if as i predict it does go bust how quickly is the governments going to pay - 2 weeks , 2months , 6 months.

The cards are stacked against NR but Rob please explain where I am wrong??????

Rover

To add my two 'penneth.
NR have been 'finished' for a while now. When and who will absorb them are the only questions.
Northern Rock will cease and their offices (or a proportion of) will be re-branded. Unfortunately this will mean job losses for NR employees.

A more salient question is, who will take up the slack in the mortgage market, NR accounted for a disportionate amount of mortgage business, ~18% I think!!!

That said, appetite for new mortgage business is winding down on both sides of the equation. The writing's on the wall chaps and chapesses.

lypsey

Thank you Rover ,of course you are absolutley correct , the brand name is worthless to a new buy , only the mortgage book is worth something and how "sub-prime" is it anyway , thats the problem

Rover

Learned colleagues, may i draw your attention to the Bradford and Bingley BS.
Those more versed in markets may wish to 'short' this one, they are in a much better position than NR. However they are next on the ladder and will undoubtedly come under severe pressure in the short term. They've recently launched a very attractive 1 year bond for your savings though. Does the BoE's guarantee extend to the B+B yet?

BobProperty

Just looked at some NR future prices:
Roughly:

Dec 07 181.5
Mar 08 184.5
Jun 08 162 :eek: