Northern Rock bailed out by Bank of England

If everyone keeps paying €25 for one transaction they'll post record profits this year :-)
 
pc7 said:
Can I ask question/advise - anyone who has money with Rabo (I do) should I be worried and maybe move it to AIB. I know people are saying don't worry about NR but that's easier said than done if you've money with them. how protected are Rabo accounts % wise etc? thanks
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Rabo is AAA-rated, possibly the highest rated of all the banks AFAIK.

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My opinion is that people should ask, why would you not withdraw your money as a NR deposit holder. No matter how slim the chance of you losing even a portion of your money, it is still a chance and you are not being compensated adequately for that risk.

Perhaps if NR was offering some kind of loyalty bonus to customers who didn't withdraw money, then it might be something to consider.
 
Northern Rock are going to save a lot on yearly interest if most of their customers draw out their savings before 31/12/2007. Its the savings customers not NR who are going to be hardest hit. I had no problem accessing NR site, firefox browser, yesterday -- site probably a little slower than usual but I put that down to overworked servers. When all the panic is over the Bank will still be operating only the name of the owners might not be NR Bank. It is a near certainty that NR will be taken over in the very near future.
 
A quote from a Times article today:

http://business.timesonline.co.uk/t...ectors/banking_and_finance/article2469784.ece

Last night, however, the Bank of England boosted hopes that a leading banking group might be persuaded to ride to Northern Rock’s rescue.


The Bank made clear that the loan facility which it has given to Northern Rock – allowing it to continue to remain afloat despite a cash crunch that has left it short of funds – will remain available to any institution that buys the lender.
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...and...



Last night’s surprise statement from the Bank on the status of its loan guarantee lifeline will boost hopes that a rescue may be easier to complete than many in the City had believed. “We have agreed that any bidder would be able to take over this facility for any expired term that it left,” the Bank said.
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Also, the following Financial Times article mentions that BoE are due to reveal the details of the loan guarantee terms "in due course":



http://www.ft.com/cms/s/2/39199b78-6489-11dc-90ea-0000779fd2ac.html
 
room305 said:
My opinion is that people should ask, why would you not withdraw your money as a NR deposit holder. No matter how slim the chance of you losing even a portion of your money, it is still a chance and you are not being compensated adequately for that risk.

Perhaps if NR was offering some kind of loyalty bonus to customers who didn't withdraw money, then it might be something to consider.
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my sentiments exactly. NR should be increasing rates short term if they want people to keep money there. They were Moody's rated Aa3 when I opened my account but I assume they've no more than a junk bond rating now.
 
domadd said:
Northern Rock are going to save a lot on yearly interest if most of their customers draw out their savings before 31/12/2007.
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As far as I know, you will be paid your interest pro-rata, so you shouldn't lose anything by withdrawing your money before 31/12/2007. I am open to correction on that, but that is my understanding.
 
Re: Safety of RaboDirect deposits

Sky news this morning had a financial anylist on saying " savers deposits were most probably quite safe"
It is the word "probably" that concerned me most.
I had left 1k in the account when I withdrew last friday, but after this statement got in this morning after about 30 mins and closed the account. I dont care whatever interest is lost, but 1k is as good in my pocket as theirs.
by the way used Firefox to get in and kept hitting the refresh button when the page times out. Patience is the key.
 
mmclo
If everyone keeps paying €25 for one transaction they'll post record profits this year :-)
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domadd
Northern Rock are going to save a lot on yearly interest if most of their customers draw out their savings before 31/12/2007. Its the savings customers not NR who are going to be hardest hit.
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Yes! Thank-you!! The light is finally dispelling the darkness! :-)
 
If everyone keeps paying €25 for one transaction they'll post record profits this year :-)
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Most of this is a cost of the clearing system and goes to AIB's profits, not NR.
 
sapmanie said:
geroid

Smug? No, you're mistaking that for intelligence. But that's your problem. I'm just trying to reassure people a little. I realise that's a losing battle in an air of stupidity and paranoia, but in the long run perhaps, just perhaps, will people remember that there was someone with a voice of reason.

The latest quote for worried depositors:




http://news.bbc.co.uk/2/hi/business/6997264.stm
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Interest is paid pro-rata so depositors do not forego interest by withdrawing money.
The shares were trading at 500p on Friday when you were talking about buying shares...they are now at 290p and there's a queue of hundreds outside NR's Dublin office. I spoke to a friend of mine in the building trade who said there was no work done on most of the sites he controls as the guys were all withdrawing their NR money.
The salient point is that "savings" and "risk" are not bedfellows. I have no savings with NR...if I did I would have already withdrawn them completely. The fact that some or all of the money may be protected is irrelevant. It's red tape and form filling hassle that most people don't need for something that should be simple - having money on deposit.

I'm sure the guy who stayed in the bar on the Titanic was quite smug about all those fools jumping into lifeboats...
 
Discussion of share price removed by moderator -- see posting guidelines.

Furthermore, why even bother to buy a damaged brand? Customers queueing for several hours to withdraw their life savings are not hurrying back. Easier to tout for the business of the fleeing customers than to buy the shell they leave behind.
 
Finally got through on the phone (took about 50 redials, so not too bad!) and closed my account, passed it on to my parents who did the same. The argument that that NR's relatively excellent deposit interest rates do not adequately compensate for the risk and worry about losing part of the total on deposit.

Considering the average Irish account is worth €96k, there is a hell of a lot of money to come out, even if people leave €40k in their accounts.

I opted for an electronic transfer - the service agent I dealt with said they were no longer offering same day transfers and that the money should be in my account my Thursday or Friday with the backlog. Anyone receive their electronic transfer from Friday yet?
 
Just had a call from NR saying funds had left my NR account on route to BOI.

I made the request Sat 3.00AM after having several "refreshments" so I had one alert and one half-closed eye on the web-page but managed to go through the correct withdrawal process. :)

For what it's worth, here's what I was told on the phone:
  1. NR updates web accounts after midnight so transfers made today will not show up online as 'sent' until Tues Morning.
  2. Funds should appear in BOI within 4 days.
  3. When funds leave an account, the clearing house process is still within NR (didn't like that bit!) and progress can't be tracked by the account owner.
  4. When BOI receive a wire transfer they verify with NR that funds are available as they would do with a cheque.
  5. He assured me that they had heard from "authority" in NR that absolutely/positively/no-doubts-about-it (his words) withdrawal requests are being and will be honoured.
 
Hi Remix, Thanks for that update. Very reassuring. I made my online transfer request at about 6am on Sat so maybe I'm not too far behind you.

Out of curiosity, why did NR phone you. Did you make a special request to be contacted or are they phoning everyone when funds leave accounts?
 
Thanks Remix - valuable info
I checked my online account with NR and it shows account as closed on 14th September and states that the money is being transferred to my bank account (in my case BoI) - Does the 4 days mean "working days only"
 
Lionheart said:
Out of curiosity, why did NR phone you. Did you make a special request to be contacted or are they phoning everyone when funds leave accounts?
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I also sent a secure email to them from my account asking to be kept informed of updates on the account. That might be the reason !?!
 
Made an electronic transfer at 10:25am on Friday. Checked at 5:30 and no monies transferred. Checked again this morning and still nothing transferrred. Called NR again, eventually got through. They said I havn't been charged the €25 for same day transfer as they were unable to get to my transaction due to the backlog. Account still earing interest over the weekend and transfer should be completed by Wednesday. Here's hoping!
 
work colleague just back from lunch queue for dublin northern rock is several people deep on the path and is trailing back to the bleeding horse
 
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