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Daggers

Panic on the streets of London

By Daggers, in General Chat

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Daggers

Daggers

Posted
Posted

...I wonder to myself...

_44116189_rock_queue203bbc.jpg

Mortgage lender Northern Rock says it has not yet had to borrow the money granted by the Bank of England as an emergency lending facility.

Experts reassured customers the bank would not go bust as many queued to withdraw their savings on Friday.

Shares in the group fell by 32% after it emerged it had approached the Bank of England for help.

The bank has struggled to raise money to finance its lending ever since money markets seized up over the summer.

The Newcastle-based bank warned it could have £150m shaved off its profits due to the money market turmoil.

Daggers

Daggers

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You would've thought a queue that size would be able to muster at least one brain cell between them, right? :unsure:

On the day it received full government support and became the safest bank in the country to dump your money in these idiots queued to take it out. Too funny.

George Bailey: [yelling at Uncle Billy] Where's that money, you silly stupid old fool? Where's that money? Do you realize what this means? It means bankruptcy and scandal and prison. That's what it means. One of us is going to jail - well, it's not gonna be me.
Steven

Steven

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On the day it received full government support and became the safest bank in the country to dump your money in these idiots queued to take it out. Too funny.

Maybe but the question you have to ask yourself is this a well run bank? :unsure: The answer is no. :(

Daggers

Daggers

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  • Author
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Maybe but the question you have to ask yourself is this a well run bank? :unsure: The answer is no. :(

Not really seeing as all funds are now as good as guaranteed by the Government. It can be as well run as a certain East Midlands football club and no one is going to lose out.

Now your Nat West on the other hand...they look well shaky. Run people, run! Grab what you can...they're going under!

*Cue: next run on bank*

*woohoo!*

James.

James.

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Maybe but the question you have to ask yourself is this a well run bank? :unsure: The answer is no. :(

These are unprecedented times in the credit markets and Northern Rock operates differently to other banks in that it doesn't use deposits for its loans, it borrows from other banks. This leaves it exposed to movements in LIBOR (the London Inter Bank Offer Rate) and due to (essentially) severe problems in the US housing market this has caused a huge increase in the LIBOR rate, eating into their profits.

I'm in no position to say whether it's a well run bank or not. We haven't really seen anything quite like this before.

The problem is also that Northern Rock is the first truly public victim of these events, there may be more to come.

Simon

Simon

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Posted
These are unprecedented times in the credit markets and Northern Rock operates differently to other banks in that it doesn't use deposits for its loans, it borrows from other banks. This leaves it exposed to movements in LIBOR (the London Inter Bank Offer Rate) and due to (essentially) severe problems in the US housing market this has caused a huge increase in the LIBOR rate, eating into their profits.

I'm in no position to say whether it's a well run bank or not. We haven't really seen anything quite like this before.

The problem is also that Northern Rock is the first truly public victim of these events, there may be more to come.

JTB has explained the situation pretty succinctly and eloquently; Northern Rock trades on loans from other banks, and these banks just ain't providing them right now becase of what's happened in the US. I think Northern Rock have been playing a dangerous game with the way they trade, 'riding on the crest of a wave' so to speak, but poorly run, I'm not sure. The Bank of England simply does NOT want to let this bank go under and all these twats removing their money will probably only make things worse.

Phube

Phube

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I have a loan with NR. The question I'd like answering (especially by financial bods) is if they ever went under... would my deby be written off, or 'bought' by another company?

Cause if it gets written off "Free Wedding"!!!!! :D

James.

James.

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I have a loan with NR. The question I'd like answering (especially by financial bods) is if they ever went under... would my deby be written off, or 'bought' by another company?

Cause if it gets written off "Free Wedding"!!!!! :D

They're not going under.

Sorry. :(;)

Phube

Phube

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They're not going under.

Sorry. :(;)

I know they're not (now :angry: ). But hypothetically what would happen??

James.

James.

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I know they're not (now :angry: ). But hypothetically what would happen??

It would be HIGHLY unlikely that your debt would be written off.

This just wouldn't happen though so even hypothetically it's a near-impossible question to answer. There's a lack of precedents for this in today's financial system (i.e. a highly regulated, protective system).

Phube

Phube

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It would be HIGHLY unlikely that your debt would be written off.

This just wouldn't happen though so even hypothetically it's a near-impossible question to answer. There's a lack of precedents for this in today's financial system (i.e. a highly regulated, protective system).

But surely companies go bust all the time with customers owing them money... isn't it the same if a bank goes under???

I'm just asking because I have no idea!? :unsure:

Lillehamring

Lillehamring

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Posted
It would be HIGHLY unlikely that your debt would be written off.

This just wouldn't happen though so even hypothetically it's a near-impossible question to answer. There's a lack of precedents for this in today's financial system (i.e. a highly regulated, protective system).

what about BCCI, or is that something different, entirely...?

James.

James.

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what about BCCI, or is that something different, entirely...?
BCCI became the focus in 1991 of the world's worst financial scandal and what was called a "$20-billion-plus heist" (Beaty & Gwynne 1993). It was found by regulators in the United States and the United Kingdom to be involved in money laundering, bribery, support of terrorism,[1] arms trafficking, the sale of nuclear technologies, the commission and facilitation of tax evasion, smuggling, illegal immigration, and the illicit purchases of banks and real estate. The bank was found to have at least $13 billion unaccounted for.

Different entirely.

Geo V

Geo V

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They're not going under.

Sorry. :(;)

If their shares continue to drop at the alarming rate they are, I may well speculate a few pounds in the hope that they recover, or of course go skint.

Steven

Steven

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Posted
These are unprecedented times in the credit markets and Northern Rock operates differently to other banks in that it doesn't use deposits for its loans, it borrows from other banks. This leaves it exposed to movements in LIBOR (the London Inter Bank Offer Rate) and due to (essentially) severe problems in the US housing market this has caused a huge increase in the LIBOR rate, eating into their profits.

I'm in no position to say whether it's a well run bank or not. We haven't really seen anything quite like this before.

The problem is also that Northern Rock is the first truly public victim of these events, there may be more to come.

In other words Northern Rock is a one way business model. If you don't have a Plan B, you have no Plan. ;)

BigGibbo

BigGibbo

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Maybe but the question you have to ask yourself is this a well run bank? :unsure: The answer is no. :(

Well what do you expect these are the tw@ts i could've had nearly a hundred grand mortgage off at 17 lol gives out loads more money than all other mortgage lenders 4.6 times salary instead of 3 if i remember rightly

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