Jethro Tull
Registered User
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The full article is here:Are my savings with Northern Rock safe?
Yes. At present, Northern Rock is borrowing money from the Bank of England (£24 billion, so far) to fund its loans.
The Government is also guaranteeing all Northern Rock savings accounts. HM Treasury today said: "Savers in Northern Rock can be reassured that their money is safe."
Will the Bank of England loan continue if Northern Rock is bought or broken up?
The Bank of England credit facility expires in February and the loan will not automatically be available to the new owners
The Bank of England credit facility expires in February and the loan will not automatically be available to the new owners.
However, the Bank of England and the Government are willing to discuss the possibility that the loan can be renewed.
If Northern Rock is nationalised, then all deposits will be backed by the Government, as is the case with National Savings & Investments.
Do people here agree that there should be no panic at least till after the end of the year and that the guarantee of savings is still in place; or is this just postponing the day for inevitable withdrawal of savings?
I think this is a little simplistic paddyb. While I don't doubt that all despositors in NR will be able to get their money back (eventually), I'm not sure the British government can do that much to stop the company from falling over and being crushed by its own debts.I find it quite incredible that people are still worried about their money in Northern Rock. The UK government is not going to let Northern Rock go under.
I can't understand how everyone is so laid back when you can't access your money when you want it.
For now... I wonder how easy it will be to access after February?... just a phone call away
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