Banking Crisis - Bear Stearns (US's Northern Rock Scenario) impact on UK

gfplux

You ask what effect bear Stearns will have.
To paraphrase the Sunday Times today.
Banks are not only worried about Liquidity but now Solvency is becoming the subject.
I do not have a mortgage but watch this board as one piece of the overall financial jigsaw.
I have cash and worry less about falling interest rates than where I can put it to keep it safe.
Maybe under the bed is the best place? (that's a joke

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I think!)

Dan_Collins_2

Sorry I missed this one from the start, good thread with no fighting, not seen that for a while!!

I am a little worried, I am down on last year, in a big way. The first 6 months of last year happened to be my best ever, the last 6 months nose dived!

People are a little worried and so are not buying houses. Our country and its finances are heavily based on this market and if it goes pop most people will be effected.

One issue we have is that so many lenders (Sub prime more so) are owned or backed by US companies. These companies have made deals with primes lenders meaning that mortgage books will be passed back, or shoudl I say sold back to the high street after 2 or 3 years. NR refer or used to SPML, a US owned lender, they would take NR clients or leads if they had adverse then after so m any year NR would buy it back. Many lenders do this and with rates going up, and they will go up, these mortgage will default in the future!

A bit of waffle I know, but I am tired!! LOL

UK007BullDog

Thanks for the discussion, even I picked up some info on negative interest.

Trollfever

NEW YORK - JPMorgan Chase says it will acquire rival Bear Stearns in a deal valued at $236.2 million, or $2 a share.
It’s a stunning collapse for one of the world’s largest and most venerable investment banks.
JPMorgan Chase says the all-stock deal has received the required approvals from the federal government and the Federal Reserve. Bear Stearns shares closed Friday at $30 a share.

From:

http://www.msnbc.msn.com/id/23662433

ManAtHome

And in a couple of weeks time JPM will be able to unload all the BS mortgage-backed assets onto the US taxpayer - nice work if you can get it...

gfplux

Hong Kong down 4%
This is going to be an interesting day!

Treadmill

Lehman brothers will be bust or bought out by the end of today in my opinion.

Datasafe_2

Its looking really bad for Lehman Brothers for sure. Are we going to see a domino effect??? We might lose serveral large banks before the year is out !!

Dan_Collins_2

A&L are looking like rocky!!

MortgageMamma

I've heard from my Skipton BDM no more further advances from 1st April.