Northern Rock

bristolleedsfan

expounder wrote: »

If northern rock is nationalised it's been reported that savers deposits could or would be transfered to another bank or buildings society savings deposit account. Does anyone know whether this would likely to be an arbitary descision by the office handling the nationalisation or would savers and depositors likely to be given a choice? I know this is unchatered territory and nothing like it has happened before, possibilities please. I also wonder if the rate negotiated with NR for a three year bond would have to renegotiated with the new bank or BS........................impossible question?

u answered it yourself with "if " and "impossible question"

not sure if your question relates just to NR, as the reports u are referring to appears to relate to any bank that gets into trouble.

http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=99882

bristolleedsfan

http://www.yorkshireeveningpost.co.uk/latest-national-news/Treasury-lines-up-new-Rock.3667213.jp

http://uk.reuters.com/article/mergersNews/idUKL122615520080112?rpc=401&feedType=RSS&feedName=mergersNews&rpc=401

Jake'sGran

There will be an announcement in the next few days about whether or not the government take it over i.e. nationalisation. NR sold a chunk of it's mortgage book a few days ago to the J C Morgan bank in the USA. Also, there is to be an extraordinary general meeting on Tuesday (I think) in Newcastle called by two hedge fund managers who own 17% of the shares and who want to prevent the privatisation. There was a full page add in The Times asking shareholders to vote a certain way but I have received no voting papers.

bristolleedsfan

Jake'sGran wrote: »

There will be an announcement in the next few days about whether or not the government take it over i.e. nationalisation. NR sold a chunk of it's mortgage book a few days ago to the J C Morgan bank in the USA. Also, there is to be an extraordinary general meeting on Tuesday (I think) in Newcastle called by two hedge fund managers who own 17% of the shares and who want to prevent the privatisation. There was a full page add in The Times asking shareholders to vote a certain way but I have received no voting papers.

The government is so determined that it has control over NR that it may announce a decision about nationalisation before the shareholders EGM.

I voted with the hedge fund companies because whilst they have their own vested interests, their interests are the same interests as all NR shareholders.

stoneman

Another yes from me, but I would say that, I have £5,000 worth of shares bought at .98p and I also had MAXjet shares (not very good at this):eek:

Jake'sGran

bristolleedsfan wrote: »

I voted with the hedge fund companies because whilst they have their own vested interests, their interests are the same interests as all NR shareholders.

Did you get voting papers then? Sorry if this is a daft question but I have not received anything. do you think this might be due to the fact that when I received the free shares Fidelity were doing a free ISA and signed up for that. If they got voting papers I imagine they would have advised me?

harryhound

One of the disadvantages of de-materialised shares is loss of voting rights or getting the paper work several days late plus loss of freebies given to individuals and possibly loss of rights to attend EGM's. It all depends on what you signed up to when you gave your modest number of shares to Fidelity.
I have had similar problems with some shares held for me by The Share Centre at Tring Herts. Not their fault, its like employing an architect and discovering you are not allowed to talk directly to the builder.

Harry

My experience with Northern Rock is here.

http://forums.moneysavingexpert.com/showthread.html?p=7646245

bristolleedsfan

Jake'sGran wrote: »

Did you get voting papers then? Sorry if this is a daft question but I have not received anything. do you think this might be due to the fact that when I received the free shares Fidelity were doing a free ISA and signed up for that. If they got voting papers I imagine they would have advised me?

yip i got my voting papers at the exact time they was released. ( i voted with the hedge funds cos whilst they have their own vested interests, i believe their interests are the same interests that all shareholders have)

anybody who hasnt had their voting forms or have any other concerns as a shareholder, i suggest they contact/join up with these people.


http://www.uksa.org.uk/NorthernRock.htm

TEDDYRUKSPIN

Why is so many people worried about Northern Rock? For one thing, the government won't allow another bank going in the pan like the last one. It will greatly hurt the economy.

Secondly, I would think it would be stupid for NR to nationalised? What benefit will this be to the government? 2 bids are on the table but NR do not want to this up. I believe they should and allow another company to help them out. Something like Virgin Northern Rock etc. The NR brand is ruined and only another well know company can bring it out of the brink.

This bank is safe as chips and the only people that should be worried is the staff! It was the incompetence of the staff that resulted in this fiasco. All pointed to greed. NR are not the only bank to fall to this. Only the media is pointing their finger at them. Other banks following the LIBOR are already in trouble but other investments in the bank are balancing the books.

It you like the products NR are offering you, go for it.

bristolleedsfan

TEDDYRUKSPIN wrote: »

Secondly, I would think it would be stupid for NR to nationalised? What benefit will this be to the government? .

Government will then have 100% control over NR, with Shareholders not getting a say in any of the decisions. _pale_

Worst case scenario for the Government would be that it had control over NR and queues start forming again :snow_laug , would be worth getting hoardes of people to queue to make it look as if savers were queuing for their money again. :snow_laug