Northern Rock to be Nationalised

Generali

BobProperty wrote: »

Well I can give you one which I have mentioned before and which will have one financial sector laughing smugly to itself. It should not have been de-mutalised. We have lost mutual building societies over the years, there's about 50-55 now, 20 years ago that figure was nearer 90. NR would never have been able to borrow and lend like it did if it were still a mutual.
As with several other posters, I think the NR should have been allowed "to go to the wall". The management changed its approach and started borrowing and re-lending, all fine when markets are booming and credit it easy. Now it's dried up and the government has to step in. WRONG MOVE. If letting NR fail would be bad for the financial markets and the UK economy then nationalising NR is worse. Any big bank with the slightest wobbly figures and the markets will bail out because they don't want to lose everything when the government nationalises it. Great move by GB and co., you've just given several UK banks the stockmarket equivalent of the "Black Spot".

The banks owners have lost everything assuming that they receive no cash for their shares. You're confusing management and ownership.

Sapphire

epz wrote: »

if you own the business then the last thing you want is government to nationalised, they basicly take over the running and assets turfing you out on the street.

I didn't see those running Northern Rock and responsible for its situation being turfed out on the street. On the contrary, they walked off with huge sums of money. :mad:

Correct me if I am wrong.

epz_2

Sapphire wrote: »

I didn't see those running Northern Rock and responsible for its situation being turfed out on the street. On the contrary, they walked off with huge sums of money. :mad:

Correct me if I am wrong.

those are employees, as a share holder you own a share of a company and its your responsability to make sure the business employees are either running it correctly or sell the shares.

northern rock shares are worthless because the business was run like a pyramid scheme, had the share holders actually bothered to take an interest then they would have realised sooner so i have no sympathy.

ManAtHome

Rover wrote: »

I fervently hope these speculators and hedges who jumped in on the slide lose the lot.

Yes, that 'll teach them pesky foreigners (who've been investing in UK companies whilst inhabitents of poundland have been too busy flogging each other properdeee) - would be a good move if the FTSE 100 was worth a couple of quid..?

nelly_2

1 in 5 cancer patients by time they get to the top of the waiting list are beyond treatment due to lack of funding apparently.

But if you run a dodgey bank that lends to people who cant be bothered to save up a deposit - 100% mortgage

or want a house and a new vauxhaul Corsa with a massive exhaust and a staffordshire pit bull as well - 125% mortgage

etc etc etc

Then the government will find the cash for you.

I have read on the interpants some people saying we, as the tax payer will end up making a PROFFIT from all this..........

how exactly can the morons in Whitehall make a proffit out of a bank that fell on its @rse during the biggest credit/banking boom ever.........now during the biggest tightening of credit/banking financial collapse EVER?????

stevec59

merlinthehappypig wrote: »

I did.........6.9% for a whole year and a 100% guarantee:D

Is the money still safe? I have a mini cash ISa with @20K in there, I did receive a letter a while ago thanking me for staying with them and giving me some extra interest (1% I think), and I thought it says that the money was safe, is it still safe?

If so is there time limit that its safe?

Thanks

Steve

Optimist

stevec59 wrote: »

Is the money still safe? I have a mini cash ISa with @20K in there, I did receive a letter a while ago thanking me for staying with them and giving me some extra interest (1% I think), and I thought it says that the money was safe, is it still safe?

If so is there time limit that its safe?

Thanks

Steve

As safe as the Bank of England !

BobProperty

Generali wrote: »

The banks owners have lost everything assuming that they receive no cash for their shares. You're confusing management and ownership.

The owners were the shareholders who, in the main, either went along with the management plans to borrow and re-lend (because it made money at the time therefore suited institutional shareholders), or were ignorant of what was going on because they didn't understand what was going on (probably most small shareholders). The owners can change the management but they didn't. Where was I confusing management and ownership?

WTF?_2

ManAtHome wrote: »

Yes, that 'll teach them pesky foreigners (who've been investing in UK companies whilst inhabitents of poundland have been too busy flogging each other properdeee) - would be a good move if the FTSE 100 was worth a couple of quid..?

I think he's referring to the two hedge funds that jumped in after the problems started and bought up swathes of shares in the hope of coining it in should the bank be sold.

It was the likes of the hedge funds that have fuelled the current credit crisis by creating a huge market for asset backed securities that has rebounded badly. This whole mess is just the inevitable consequence of unchecked greed in the financial markets.

Just as well the taxpayers are there to bail them out .... this time.

sm9ai

stevec59 wrote: »

Is the money still safe? I have a mini cash ISa with @20K in there, I did receive a letter a while ago thanking me for staying with them and giving me some extra interest (1% I think), and I thought it says that the money was safe, is it still safe?

This is very much an unknown.

In some ways it is safe as its guarenteed by the government so if(when) NR dies completely your money is guarenteed.

But what does this guarentee mean? Well it has never been tested so we just don't know. Apparantly you would get your money back, but I doubt you could just go into a branch and withdraw it. You could be without your money for years. And imagine what would happen if they accidently lost your records due to a computer glitch (its government run now so thats more likely! lol).

It could be an absolute nightmare to sort out.

Personally I would feel much happier with my money elsewhere. (Excluding banks with a similar lending practice - I can think of a few!)