Northern Rock

M

mmmmm

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Hi all, Has there been any word as to when NR's backing by the english treasury/ BOE is being removed? Is money there still safe?
 
mmmmm said:
Hi all, Has there been any word as to when NR's backing by the english treasury/ BOE is being removed? Is money there still safe?
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Its still there. They reaffirmed it today. I would imagine it will be there for as long as the bank remains nationalised
 
Sunny said:
Its still there. They reaffirmed it today. I would imagine it will be there for as long as the bank remains nationalised
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Thanks for the reply....am i right in saying the bank looks like it will remain nationalised for the foreseeable future as the debt is still (to the best of my knowledge) around 16-17billion ?
 
mmmmm said:
Hi all, Has there been any word as to when NR's backing by the english treasury/ BOE is being removed? Is money there still safe?
Click to expand...

in spite of the bad results released today it would appear deposits are still guaranteed until 2011. This will of course depend on the health of the bank at the time. They are not going to withdraw the guarantee and let the bank go to the wall. Not after jumping in to rescue it last year. See the following:

http://www.ft.com/cms/s/0/d6e44576-6279-11dd-9a1e-000077b07658.html

From NR website: [broken link removed]
Will the Government's guarantee be withdrawn now that the business plan has been submitted?

  • No. Our plan will set out the basis for the removal of Government support, but this will take place over the next three to four years.
  • In any event, as previously confirmed by the Government, these arrangements would not be withdrawn without at least three months notice
 
As the UK housing market is only starting to go belly up,the position of all uk banks is likely to deteroriate over the short to medium term including NR,so you could safely say the guarantee will be there for some time to come.
As trust has been lost with NR any attempt by HM government to exit from there current position will more than likely result in another run on the bank.
 
So NR is really the safest bank out there. I wonder is there a surge in their level of deposits?
 
Can I just double check that deposits with NR are fully guaranteed irrespective of the amount and are not limited by the UK deposit guarantee scheme? I read an article to the contrary in a recent paper and got worried, but the NR website seems to indicate that it's the full amount that is guaranteed? Is this correct? Thanks
 

Its the full amount.
 
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