does anyone know what deposits are guaranteed ,i thought there was a limit if they go bust on what will get paid back to depositors
Northern Rock
- Thread starter DeliDave
- Start date
David,dont panic it is so unlikely that they will go belly up all they have done is backed up their lending with Threadneedle Street they are still making profits although these are subject to a profit warning which is that they may be down by
Don't know if I agree with everything here. Didn't BCCI go bust a few years ago, and many organisations as well as people lost lots of money?
I do accept that higth street banks are usually better prepared and I agree that Northern Rock is not likely to go bust. What will happen is it will be bought by another bank. Thd shares are being marked up in recognition of that.
I do accept that higth street banks are usually better prepared and I agree that Northern Rock is not likely to go bust. What will happen is it will be bought by another bank. Thd shares are being marked up in recognition of that.
BCCI was a very different animal and bares no real comparison,the last I heard the NR shares are taking a hit as folk panic but it will settle down I am sure,all the major banks have suffered over recent weeks as well due to their incompetent lending in the us mortgage market,but they will survive.
Yes and No. In both cases money 'disappeared' that shouldn't have and the bills could not be covered. In BCCI's case a lot of local authorities had money invested?? and the council tax payers had to pay the loss. Yes, they did get money back, but many years later.
However, the original point about having no more than
However, the original point about having no more than
Forgive me if I am wrong, but I think I read on the BBC website this morning that Northern Rock has used customers mortgages as security to the Bank of England (if they need to use the cash faciilty made available) so I would not be too worried about mortages etc as these can be sold on to otehr leneders without terms being changed
But for deposits as Oldfogey said they only have secruity up to the value of
But for deposits as Oldfogey said they only have secruity up to the value of
What I find dissapointing in all this.
We have been lied to so many times by some very senior people in goverment, we just don't believe anyone anymore.
The Govenor of the B of E is saying N R is solvent no need to panic. Yet people continue to withdraw money in a panic not believing a word from Goverment the FSA or the B Of E. What a sorry mess we are in
Val & Frank
We have been lied to so many times by some very senior people in goverment, we just don't believe anyone anymore.
The Govenor of the B of E is saying N R is solvent no need to panic. Yet people continue to withdraw money in a panic not believing a word from Goverment the FSA or the B Of E. What a sorry mess we are in
Val & Frank
The info above re the amounts that are "safe" is correct. This info is published in the "small print" but rarely mentioned to people who hold more than
Parksy
Moderator
I saw on the 6 o clock news that Alistair Darling has guaranteed any savings held by Northern Rock, so in effect their shares are as good as Government stock. The share price will bottom out in a day or so. Worth a punt anyone?
As the government is to honour the savings by backing Northern Rock their shares should not only level off. Now as there is a gaurantee for any potential buyer of the company possibly it might just start a Dutch auction and shares again start to rise.
I don't agree with the government honouring the stability of the company and their investers. They did not make a similar jesture for the pensions fiasco, Bearings Bank, Rover/MG, etc. so why this one? Could it be as a northern based institution the Scottish contingent of the government have money invested in it?
Parksy
Moderator
It makes you wonder doesn't it? If they were allowed to go under it could start a run on the banks which would strike at the heart of the British economy. Anyone investing in shares now could do well in a couple of years when the crisis has passed. New caravans all round!
Could it be as a northern based institution the Scottish contingent of the government have money invested in it?
Now it's getting silly was Northern Rock not the Newcastle ??
The Scottish mafia will have all their own money in the Dunfermline building Society. The goverment have only safeguarded savers money not investors money. It's alot more complicated than meets the eye. Should the NR be sold would the Goverment pocket the money once savers had been paid out.?? my understanding is that the banking systems still underwrite the first
Now it's getting silly was Northern Rock not the Newcastle ??
The Scottish mafia will have all their own money in the Dunfermline building Society. The goverment have only safeguarded savers money not investors money. It's alot more complicated than meets the eye. Should the NR be sold would the Goverment pocket the money once savers had been paid out.?? my understanding is that the banking systems still underwrite the first
Some good points here re should they of shouldn't they (safeguard investors money) - the truth is the government had little choice and the run on the bank was/is starting to destabilise the banking system which after all is based upon confidence.
If you do not feel your money will still be there next week, then what do you do.
What amazes me is the stupidity of people holding many thousands of pounds on deposit in one institution when only the first
If you do not feel your money will still be there next week, then what do you do.
What amazes me is the stupidity of people holding many thousands of pounds on deposit in one institution when only the first
Hi Darce
The problem you have is people continued to save with one Bank/Building Soc for Tessa and ISAs etc. It's much easier to manage interest payments etc when you are with one provider.
I am sure though many people will have learned a lesson from this!!!
Frank
The problem you have is people continued to save with one Bank/Building Soc for Tessa and ISAs etc. It's much easier to manage interest payments etc when you are with one provider.
I am sure though many people will have learned a lesson from this!!!
Frank
Morning Frank
The convenience thing should not blind investors to the lack of protection. At last the powers that be are to look at this.
However, if you want just one reference point for your savings but do not wish to have all your eggs in one basket, there are "Wraps" or "Platforms" available where they provide an "umbrella" under which you can have investments with a multitude of providers.
So you get just one piece of paper with all your investments on it every month (or whenever you state) and listed on it is all your differing accounts/investments.
Moving from one to another within the Wrap or Platform is very easy.
The Australians in particular (and to an extent the Americans) have been doing it this way for some time; we are now playing catch up.
The convenience thing should not blind investors to the lack of protection. At last the powers that be are to look at this.
However, if you want just one reference point for your savings but do not wish to have all your eggs in one basket, there are "Wraps" or "Platforms" available where they provide an "umbrella" under which you can have investments with a multitude of providers.
So you get just one piece of paper with all your investments on it every month (or whenever you state) and listed on it is all your differing accounts/investments.
Moving from one to another within the Wrap or Platform is very easy.
The Australians in particular (and to an extent the Americans) have been doing it this way for some time; we are now playing catch up.
I gather the FSA is to look at unusual share dealings in both NR, A&L and B&B. Surprise surprise. It has taken them a week to figure out that the big boys saw a great excuse to make some serious money. Force the price of A&L etc down by selling on the back of the scares over NR and then buy back at the bottom. It has risen back 50% so far, so guess what?? they made a healthy profit. Now that NR has been effectively nationalised there is no excuse now to avoid dodgy debts. The Government will bail anyone out, with our money of course. We now also discover the excuses trotted out by Mervyn King are a load of old codswallop, at least from the quotes from the EU. NR will now be sold at a knock down price and all the mortages transferred to another lender, at higher rates of course. Smiles all round, and bonuses in the City again. Who pays?? Guess.
What baffles me is that so called cash strapped nationalised organisations such as the Metropolitan Police, the London Fire Service, London City council, etc. can afford to invest millions of pounds in Northern Rock. Surely this type of nationalised industry is not playing fair by "illegaly" investing their money and then crying out to the government, tax payers, etc. for financial help. The money they have invested should have been ploughed back into the organisation thereby either reducing their costs or employing more staff/better equipment as they reckon is needed.
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