Northern Crock and Nick Fritz

[milanbenes]

Nick you dipstick, as we have all seen what has been happening in the US with the sub primes problems, WHY OH WHY is anybody in your opinion foolish to want to take their funds out of Norther Crock ?

Northern Crock was all over CNN last night, they showed the queues the bank staff explaining procedures/shall we say their rules to people in the queues

and

they explained nicely and clearly that it seems anybody with funds in Northern Crock, if Northern Crock goes down, their first 2k gbp is guaranteed, then they get 90% or the next 30k gbp and then nothing of the rest !!!! meaning as far as I understand however much anyone has in Northern Crock, if they go down, all the people will get is a maximum of 31700GBP.

CNN said 1billion had been withdrawn so far.


Experts, giving consideration to the maximum you can get back if the bank goes down, would it work to put a maximum of say 30k gbp into many accounts with many banks instead of all with one ?

Up the au.

Milan.

[Paddy]

Northern Rock are in DEEP POO. They are in deeper poo than portrayed in the news. They have been lending 120% of value mortgages (90% + 30% loan) at four to six times annual income. Interest rates have gone up, borrowers can’t afford to pay and the repossessions are not recovering costs.

I was working with the most ignorant Australian tw@t of a contractor who left Australia because of debts, after arriving in the UK and contracting for three months Northern Rock lent him £260,000 (120% mortgage). He was on £25 per hour.

[wendigo100]

It's different this time.
There will be a small correction.
We will have a soft landing.

(Have I forgotten anything?)

[Paddy]

It's different this time.
There will be a small correction.
We will have a soft landing.

(Have I forgotten anything?)

That’s what the mistress told me in the S&M dungeon. I’m still smarting.

[TheFaQQer]

They've just borrowed £31 billion from the BoE.

I don't think there's too much danger of them running out of cash.

[sappatz]

northern cock

northern cock will pay 7% to the BOE for emergency funding
this is an awful refinancing rate for a bank !
it means no other bank will lend then money at any reasonable rate (libor, repo...)

[Sysman]

They've just borrowed £31 billion from the BoE.

I don't think there's too much danger of them running out of cash.

Predators circle as Northern Rock founders

[thunderlizard]

There is a bit of "do as I say not as I do" from the world of high finance. How did Northern Rock get into trouble? Banks thought they were too risky to carry on putting their money into, so they stopped lending. Joe Saver Bloggs does the same, and they say he's overreacting.

[NoddY]

There is a bit of "do as I say not as I do" from the world of high finance. How did Northern Rock get into trouble? Banks thought they were too risky to carry on putting their money into, so they stopped lending. Joe Saver Bloggs does the same, and they say he's overreacting.

Exactly. The market has spoken. It says 'lend money to Northern Rock, and you might not get it back'. Why should savers unnecessarily add themselves to the list of creditors when they can get out now?

[NotAllThere]

I wonder how many of those people queueing actually have more than £2000 in their savings accounts.