Banking Industry

setmefree

Fedz wrote: »

I can understand what your saying and in laymens terms I totally agree but, their's more, much more than what's on the surface hence why (in my opinion) it was a positive decission made by the government.

An individual signs an agreement to pay the mortgage and you do so in full knowledge that if you don't keep up to repayments your house may be repossesed. Not forgetting you can also get insurance to cover redundancy, illness ....etc.

The NR obviously doesn't sign a similar kind of agreement in context of your above post to my knowledge.

Now you honestly can't tell me if for example you had a bank and had a decission making position that you would lend people eg: £250k to buy a house and if they couldn't pay back the money because they lost their job due to for example stealing at work, that you'd let them off and say ok no worries start paying back when you get out of prison and get another job.

Meanwhile you have a workforce, shareholders ...etc to pay. You'd never last and would loose millions ... don't you agree?

How would you run a bank, explain to me your ethical ways for helping the small person

I'm not being underhanded I'm genuinely interested setmefree

With regards of running a Bank i wouldn't have a clue, if a person lost their property due to the fact of being sacked though stealing then that's their problem, i have no time for these sorts.

But on the other hand, if i did have a bank and the debts were completely out of control such as N.R. were, i would be wanting to know as to why the people i had employed at high levels, let the company get in that state in the first place,and those responsible would most certainly be sacked.
as you say everyone is responsible for their actions including banks.;)

Mark7799

setmefree wrote: »

That's very correct N.R. certainly did have the B of E to bail them out, and i know they have to pay it back, but who bails the individual out, they can't turn to anyone hence they lose the lot.


They can drop the interest rates as much as they like, if the general public has no confidence in them it aint going to make any difference at all.

You are assuming that individuals are never 'bailed out'. This happens quite regularly - re-financing, re-mortgaging. consolidation loans, it's just that the ones that work well don't make good reading on this forum! However there comes a point when banks or other lenders will say 'enough' or 'no more'. Or do you think everyone should be bailed out at every eventuality regardless???

Mark7799

setmefree wrote: »

But on the other hand, if i did have a bank and the debts were completely out of control such as N.R. were, i would be wanting to know as to why the people i had employed at high levels, let the company get in that state in the first place,and those responsible would most certainly be sacked.
as you say everyone is responsible for their actions including banks.;)

Isn't that what's happened then?
http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=494562&in_page_id=1770&in_a_source=

Fedz

Banks borrow money on wholesale or use deposits and or mixture of the two to lend you. They have this money to pay back also, it doesn't just appear from a copier in the back office. The bank is responsible to pay back what it borrows to in turn lend you.

Now if you can't repay that borrowed money and compound this by thousands, how do you expect a bank to make money, pay staff and stay in business as well as repay this money it borrowed and or deposits if you fail to repay it.

It all has to be accounted for they can't just simply wipe it out because of 'circumstances'.
It has to be recouped from somewhere ...

oscar52

its called PPI or PPC, and is very lucrative. Some providers have recently cstated that loans are unprofitable without insurance being added

setmefree

Mark7799 wrote: »

Isn't that what's happened then?
http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=494562&in_page_id=1770&in_a_source=

Well there you go then, great minds think a like;) oops maybe not....

Deputy chief executive-David Baker, treasury director Keith Currie and commercial director Andy Kuipers are being stripped of their boardroom duties but will continue in the company.Adam Applegarth resigned.
Non-executive directors Sir Derek Wanless, Nichola Pease, Adam Fenwick and Rosemary Radcliffe are leaving with immediate effect.

setmefree

Fedz wrote: »

Banks borrow money on wholesale or use deposits and or mixture of the two to lend you. They have this money to pay back also, it doesn't just appear from a copier in the back office. The bank is responsible to pay back what it borrows to in turn lend you.

The individual borrows money off the bank to buy a property, his amount to be borrowed will be determined on his income, 5 years into his mortgage the company he works for cuts his hours in half due to maybe who knows lack of orders, eventually he falls behind on his payments and loses his property, now who can he turn to, and i think you will find that is the case for a lot of people, industry moving abroad

setmefree

Ok if northern rock was to be nationalised does this mean that i would be able to buy bonds in the company

Fedz

setmefree wrote: »

The individual borrows money off the bank to buy a property, his amount to be borrowed will be determined on his income, 5 years into his mortgage the company he works for cuts his hours in half due to maybe who knows lack of orders, eventually he falls behind on his payments and loses his property, now who can he turn to, and i think you will find that is the case for a lot of people, industry moving abroad

So how is that the banks fault?

You think the bank should take pity and wipe it off ... what?

You can't borrow money, then !!!!!! happens and expect it to be cleared and you keep the £250k house can you?
Is that seriously how you expect banks to act :eek:

setmefree

Mark7799 wrote: »

You are assuming that individuals are never 'bailed out'. This happens quite regularly - re-financing, re-mortgaging. consolidation loans, it's just that the ones that work well don't make good reading on this forum! However there comes a point when banks or other lenders will say 'enough' or 'no more'. Or do you think everyone should be bailed out at every eventuality regardless???

Quite true, so now the Banks should take notice of what happened to N.R. and take the needed steps to make sure it dont happen to them, not have secret bail outs, billions have been payed out to N.R. by the tax payer, so the B of E should say to others no more enough is enough