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Northen Rock... should I be worried


GeordieSteve

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Point to note people is, for savings, only a max is protected under current goverment laws, so if you have more then 25k in savings in one place, split it up, cause if the bank was to go under then you loose everything above 25k...........;)

 

And as said, if you have a mortgage with Northen Rock, then depsite what happens them, you owe what you owe, that debt unfortunatly will never be written off.....my mortgage is with them also.....

 

Still their not living up to their name at the moment are they......Northen Rock :D Maybe they should re-brand to Western Slump.........:D:D:D

 

EDIT: I think I just created a joke there lol........

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They have 100 billion in assets im sure that will keep them in wine gums for a while ;)

 

The problem is they were too greedy lending to high risk types and as a result other financial institutions wont lend them money so they had to get it from the government, no big deal.

 

I would wait till wednesday for the share buying :p

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True. How daft would it be if it was the panic-stricken stupidity of their own customers that was responsible for it going bust!

 

Wasn't it other banks that wouldn't lend NR any money that caused them to go to the BoE in the first place? You can hardly blame savers for their actions if other banks won't loan to NR themselves.

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Wasn't it other banks that wouldn't lend NR any money that caused them to go to the BoE in the first place? You can hardly blame savers for their actions if other banks won't loan to NR themselves.

 

Financers not actual banks...ie organisations that actually have money. They're all a bit shafted thanks to the US sub prime issue's, so they are being more prudent/hard to get money out of. The BoE had to do the same for Barclays and for them it wasn't an issue...for NR it's been a self perpetuationg mess as idiots run around like headless chickens!

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Just logged onto my online NR account & the b@stards won't let me withdraw any money, when this thing blows over I'll be pulling my money out regardless.

 

How much have you got? If it less than £3K then it is guaranteed by the State, if not you can still only lose up to a fixed amount - except if you've got over thirty grand in a single account, in which case you should be revising your finances anyway;)

 

Where are you gonna take the money to? Do you know who else has got issues like NR? Probably not. Don't assume that everyone else is immune, it will take several weeks more for things to settle down. Other big players are in limbo too.

Stay cool.

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How much have you got? If it less than £3K then it is guaranteed by the State, if not you can still only lose up to a fixed amount - except if you've got over thirty grand in a single account, in which case you should be revising your finances anyway;)

 

Where are you gonna take the money to? Do you know who else has got issues like NR? Probably not. Don't assume that everyone else is immune, it will take several weeks more for things to settle down. Other big players are in limbo too.

Stay cool.

 

 

See this is the thing John, everyone is acting like jevansio, panick withdrawing, and there is no need. People dont seem to realise NR cant just disappear, and as I said previously any savings in one account thats over 25k is not guaranteed by the state, so if you have more then 25k in one savings account you should split up, but apart from that everyone should just chill and let this blow over. I cant see how drawing your money out will help anyone, especially NR......people are just reacting to the media hype, like you say are people aware of what other banks have borrowed recently, do they think NR is the only bank in this position, I dont know the financial markets for shit but it wouldnt surprise me this is just a hyped media case........they need something to get their teeth into from time to time.

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People think that banks are repositories of cash, stashing it in vaults for whenever they need it all back.

But if that were the case, people would be paying the bank 'keeper' fees, as you do with gold bars.

Of course as we know it's the other way round, the bank pays YOU fees for having your money.

That's because your money is not really there, it is loaned to others so that it makes even more money, the bank keeping the difference.

Regulations state the minimum amount of 'cash' each bank has to keep available, the rest can be in 'illiquid' assets or instruments.

 

The downside is that if everybody lines up demanding for their money back all at once they will not get it - but that is part of the *design*

 

All those idiots queuing for days to draw a couple of grand can pull ANY bank down for no good reason.

 

There *are* good reasons for NR (and a few others) to go belly-up, but this is for the regulators and the governments to decide (looking at the big picture, sometimes even corrupt and incompetent players may need to stay in place if the big boat is to stay afloat)

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It's easy to slag off these 'idiots' for withdrawing their savings but if it was your life savings you would do the same. I was tempted to buy some NR shares on Friday but bottled out cos NR position is very weak and is getting worse. They're primary business is mortgage lending and they borrow money from other banks to do this. This money has dried up. Combine this with people closing accounts and it don't look good. NR will go tits up or get snapped up by receivers or AN Other Bank. But good news is it's knocked other banking shares down which are very stable.

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It's easy to slag off these 'idiots' for withdrawing their savings but if it was your life savings you would do the same. ....

I'd never have my life savings in a single asset, let alone a single account in NR:eyebrows:

 

It says on the BBC site there was a little girl queueing to claw back £20 her grandmother put in her account. Aawwww....

 

They were all keen to ditch the 'building society' status so they could be allowed to play with matches (like the big boys).

That's nice if your villas in France are funded by your cut from trading financial vehicles and risk OPM (other people's money)

Not so nice if you are a member and overnight become a customer. Most of these people thought the only difference was a cheque of 'free money'.

Well, it wasn't.

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It's easy to slag off these 'idiots' for withdrawing their savings but if it was your life savings you would do the same. I was tempted to buy some NR shares on Friday but bottled out cos NR position is very weak and is getting worse. They're primary business is mortgage lending and they borrow money from other banks to do this. This money has dried up. Combine this with people closing accounts and it don't look good. NR will go tits up or get snapped up by receivers or AN Other Bank. But good news is it's knocked other banking shares down which are very stable.

 

No, I have left my savings in NR thanks........and Im not about to worry about my mortgage either with them. I have listened to several financial advisers already and all have said already, the same as the reports on the TV etc "there is no need to panick", "NR wont be going anywhere"..........

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How much have you got? If it less than £3K then it is guaranteed by the State, if not you can still only lose up to a fixed amount - except if you've got over thirty grand in a single account, in which case you should be revising your finances anyway;)

 

Where are you gonna take the money to? Do you know who else has got issues like NR? Probably not. Don't assume that everyone else is immune, it will take several weeks more for things to settle down. Other big players are in limbo too.

Stay cool.

Around £15k in 1 tracker savings account. I was prolly gonna pull it back into my current account with Halifax then setup another savings account with someone else (Halifax/Barclays).

 

I know deep down that I'll be OK, it just annoyed me that NR seem to have "Blocked" me from withdrawing any money due to "Technical Issues", for me whether they sink or swim is irrelevant now, as soon as that site is back my money is coming out.

 

EDIT : This is their exact reason on the website "Unfortunately, the system is currently very busy" :D

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Around £15k in 1 tracker savings account. I was prolly gonna pull it back into my current account with Halifax then setup another savings account with someone else (Halifax/Barclays).

 

I know deep down that I'll be OK, it just annoyed me that NR seem to have "Blocked" me from withdrawing any money due to "Technical Issues", for me whether they sink or swim is irrelevant now, as soon as that site is back my money is coming out.

 

EDIT : This is their exact reason on the website "Unfortunately, the system is currently very busy" :D

 

Which probably means their web site cant handle all the traffic, I dont think this is a ploy to keep everyones money in their accounts............:cool:

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Around £15k in 1 tracker savings account. I was prolly gonna pull it back into my current account with Halifax then setup another savings account with someone else (Halifax/Barclays).

 

I know deep down that I'll be OK, it just annoyed me that NR seem to have "Blocked" me from withdrawing any money due to "Technical Issues", for me whether they sink or swim is irrelevant now, as soon as that site is back my money is coming out.

 

EDIT : This is their exact reason on the website "Unfortunately, the system is currently very busy" :D

 

 

For a professional gambler you should know all about risk evaluation, in this case I think you have got it all wrong. I'll bet you my supra you're money is safe where it is :D

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Which probably means their web site cant handle all the traffic, I dont think this is a ploy to keep everyones money in their accounts............:cool:

Surely if their website can't handle the traffic as soon as they shut it down all load will dissapear. The level of traffic your talking about would imply something along the lines of a denial of service attack, I can't possibly believe they can't handle their "online" customers (which will be smaller than their overall customers) from making account transactions (it's hardly heavyweight stuff).

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Around £15k in 1 tracker savings account. I was prolly gonna pull it back into my current account with Halifax then setup another savings account with someone else (Halifax/Barclays). ...

One of these two is also currently in pretty deep excrement as well, but there is no run on them.

 

This panic and pathetic queueing outside the banks shows deep distrust towards the authorities.

I'd understand if it were to happen in a Mediterannean country (say Italy), but here? :blink:

 

Quite unbritish isn't it?

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