Nationwide in trouble?

Fella

I'd be surprised if Nationwide is in trouble. There are stories circulating that one of the clearing banks is though. No idea if there's any truth in them.

bristolleedsfan

Fella wrote: »

I'd be surprised if Nationwide is in trouble. There are stories circulating that one of the clearing banks is though. No idea if there's any truth in them.

Yip their was a rumour yesterday or day before that another UK Bank had sought BOE bailout, pity NR wasnt afforded same level of secrecy.

tawse57

Ben Bernanke in the US has said that a big bank will fold before the US housing crisis is over

bristolleedsfan

tawse57 wrote: »

Ben Bernanke in the US has said that a big bank will fold before the US housing crisis is over

Save people googling .


http://en.wikipedia.org/wiki/Ben_Bernanke

MattB_4

bristolleedsfan wrote: »

Yip their was a rumour yesterday or day before that another UK Bank had sought BOE bailout, pity NR wasnt afforded same level of secrecy.

I quite agree. Maybe they have learnt their lesson?! I do wonder if it wouldnt be better to make banks & building societies draw on BoE funding so remove some of the stigma that is obviously attached. I think they do this in Europe with the ECB.

MarkyMarkD

Nationwide haven't stopped lending to customers over 75% LTV, they've simply rebanded their LTV pricing.

Previously they charged 0.20% more on loans over 90%; now it's on loans over 75%. This isn't particularly dramatic - most FTBs borrow over 90%; most other borrowers don't borrow over 75%.

I don't understand the accusation that they are profiting from the credit crunch. In fact, it's rubbish. Nationwide get some funding from the wholesale markets and hence they are incurring higher costs because of the credit crunch. They could pass that on to all borrowers through higher rates across the board, or they could choose to pass it on to higher risk borrowers taking over 75%. They've taken the latter route. It's not profiteering - it's a reasonable business decision.

As to LTV pricing being a substitute for HLC, sure it is. But Nationwide won't change their advertising because they've already had that argument with the ASA and won. I know because it was me who complained about it! Their advertising is misleading but they can get away with it and will probably continue to use it. Most Nationwide advertising is negative and unsubstantiated IMHO.

bristolleedsfan

MattB wrote: »

Maybe they have learnt their lesson?! I do wonder if it wouldnt be better to make banks & building societies draw on BoE funding so remove some of the stigma that is obviously attached. I think they do this in Europe with the ECB.

It was stated a few months ago that should any more Banks go cap in hand to B.O.E, everyone will be :shhh: about it.

Unfortunately in September 2007, Mr Brown and Mr Darlings minds were focused on the impending election campaign that never was. :rolleyes:

European Banks going to the Central Bank as last resort is as common as night following day, over here powers that be let the media make a drama out of the crisis.

MattB_4

I guess it pushes illegal immigrants and Princess Diana off the front page of the Daily Mail for a couple of days at least!

bristolleedsfan

MattB wrote: »

I guess it pushes illegal immigrants and Princess Diana off the front page of the Daily Mail for a couple of days at least!

Nothing But Nothing pushes House Price articles off Daily Express Front Page. :rotfl: :rotfl::rotfl:

cloud_dog

I cant believe this thread is still alive (oops there it goes again)