Northern Rock nationalised

A catastrophic blow for the U.K. economy with inevitable knock on effects for us sadly!
 
From a savers perspective I presume this is a good thing...the money is totally guaranteed now.
 
Squonk said:
From a savers perspective I presume this is a good thing...the money is totally guaranteed now.
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Depositors funds were already fully guaranteed! There is no change on that front. Have you not been following this story...?
 
Rambo - you have faith in Mr Darling? - I cant think why!
 
I so hope that the EU finds some reason to stop this nanny state adventure, this surley must all be unallowed state aid in favor of one bank over others it is in competition with.

Labour is simply looking after the people that will elect it in the next election in the North East where Northern Rock is a big part of the community.

They should never have bailed out the bank in the first place. If the business model of a company fails than the company goes bankrupt and that's that. Normal savings were guaranteed to a certain limit and as they always say that the lending books are sound they surley would have emerged out of bankrupcy in one form or another.

What now with the next bank (or lender) in trouble? Will the state also take them over?

I think this is state aid in another wrapping and I hope that someone is stopping this from happening, good luck to all shareholders, I hope they sue the goverment over this and get a good payout.

Communism is well alive in England..
 
I don't agree...the collapse of a bank would be catastrophic for any economy. If the same happened here I'd like to think our government would act to protect the customers of whichever institution it was. Not the shareholders, just the customers. Shareholders in NR will get virtually nothing. I still amazed anyone has left funds with NR to be honest...yes it's guaranteed but what exactly does that mean? I doubt you get your money back instantly and surely there's a lot of paperwork, form filling etc? Hardly worth the risk I would have thought
 

I am not sure what you mean. I can understand moving your money to another institution if you believe NR will not offer good value in the future, but the mechanism for removing money from a NR online account has not changed. You log in and hit the approx 10-20 keys it takes to transfer money out.

Where do you get your assumption that there is suddenly more form-filling and a risk that they will not allow instant access to your instant access bank account.
 

When the run started, and the Treasury said they'd guarantee all deposits if the bank collapsed I'm surprised people left their cash with the bank. Even if it's protected, I wouldn't imagine depositors would get their funds instantly. It might take weeks or months and involve plenty of form filling etc. Do you remember when the queues were half way down Camden Street and people were saying 'what's the panic, the money's protected?'...that's what I was talking about.
 
ClubMan said:
Depositors funds were already fully guaranteed! There is no change on that front. Have you not been following this story...?
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Yes, Clubman, I have been following this story. My understanding was that the BofE would not continue to 100% guarantee the NR deposits indefinately; the guarantee would fall back to whatever it is for other bank deposits. If NR went into private hands the situation was likely to be re-evaluated. Now that the British Government owns the bank the deposits are 100% safe.
 
The thing is though, some / many here would take the view that "It's 100% guaranteed, the interest rate is high & I don't need immediate access to the money". I know I'm willing to accept that.
 
TSThomas said:
The thing is though, some / many here would take the view that "It's 100% guaranteed, the interest rate is high & I don't need immediate access to the money". I know I'm willing to accept that.
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Fair enough I suppose...personally I wouldn't want the potential hassle for the sake a few quid. In my case a differential of 0.5% on the €20,000 I keep in savings is only worth €80 to me per annum. Not worth it in my view for the price a few drinks. However I do understand that the average depositor was closer to the €100,000 mark. At least they get a couple of bottles of champers with their €400 extra!
 
Another interesting point I heard recently. The bank of England guarenteed the deposits. Did they guarentee the interest? Also can they charge an "administration" fee to investors to get the money out? I am only asking so please don't all rush to jump down my throat.
 
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