Northern Rock bailed out by Bank of England

sweetp said:
One simple question... if you had 100k on deposit there, would you leave it there or remove it immediately?
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Listen, for peace of mind I would probably move it but I am just trying to point out that people shouldn't panic if they can't get online over the next few hours. They are no where near to failing.
 
Lionheart said:
On the slim change that I will eventually get to my account, is there a "withdrawal" option. I don't recall seeing one before but its a few months since I accessed my account.
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Jack the Lad answered this 9 posts ago in post #35.


Lionheart said:
Can I transfer funds to an external account or is by cheque only?
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You can transfer electronically to an external nominated account as well as by cheque.
 
Can I just clarify something here? You always hear your money is "safe" in a bank; the bank is bonded, the money is insured etc etc. Based on that 90% on the £33000 figure quoted above, are you only ever going to get £31700 back, assuming the bank itself don't give you any?
 
Lionheart said:
Can I transfer funds to an external account or is by cheque only?
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You need to have set up an external account number for transferring funds to. That's a security precaution, and you will need to have sent in documentation to prove it's your account.

If you haven't done that, your money will be withdrawn and sent to you as a cheque.

I really wouldn't worry excessively. You should get in to your account when traffic is reduced,
 
Zenith said:
Can I just clarify something here? You always hear your money is "safe" in a bank; the bank is bonded, the money is insured etc etc. Based on that 90% on the £33000 figure quoted above, are you only ever going to get £31700 back, assuming the bank itself don't give you any?
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It appears to be an upper limit. I.e. They won't give back 91% even if the FSCS have funds available.

Financial Services Compensation Scheme

FSCS can pay compensation for financial loss of up to £31,700 for deposit claims (made up of 100% of the first £2,000 and 90% of the next £33,000) if a deposit-taking firm (such as a credit union) is unable to pay back money it owes to its members.
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I woke at about 5.30 this morning and listened to BBC news. On hearing of NRs difficulties, I logged on with no problem and made a same day electronic transfer of 99% of my account balance. Cost €25. Don't know if it has gone through yet, but will be mightily relieved when it does.
 
since 8am,the online service is not processing past the password page and the phone number given is constantly engaged.. strange that the rte 9pm news didnt carry this story last night..
 
must admit money markets are anything but my strong point. However there is evidence here (and I'm sure the same thing is happening in the UK) of a 'run', where NR deposit a/c holders are all trying to withdraw their cash at the same time. Thise can surely only make their liquidity problems worse => BoE is needed again => more panic etc. No idea what happens there tho!

Am I being too simplistic? I agree this seems to be a liquidity problem rather than a solvency problem however 4.5% is NOT a big enough return for me to take the risk (possible small) involved that its something more sinister. So I will withdraw my cash (if I can ever log on!)
 
Jethro Tull said:
btw will you keep us posted as to whether or not it does go through?
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There seems to be big run on, and this is the real big danger. I can't even get a logon screen as the moment. I just knew I should have called in when I went past them this morning. I am currently trying to get the inside track.
 
Have been trying to logon and phone since 8:45am. After hitting redial on phone for over an hour and a half I eventually got through and closed my account over the phone. €25 for same day transfer. money in my current account by close of business today. I initially said I wanted to make a transaction on my account and the staff member that took my call immediately asked me if I wanted to close my account.
 
There is absolutely no chance of any saver losing their deposit.

Relax!

Northern Rock is a massive, profitable bank.

There's no need to make withdrawals.
 
Northern Rock savers would be advised to diversify their savings.

NR does also have exposure to the US subprime debacle.

Northern Rock has a £75 million direct exposure to the US sub-prime market and £200m further exposure within US money markets, some of which has been lent on to sub-prime borrowers. Credit rating agencies have given much of the debt AAA rating however credit ratings of asset backed securities are obviously open to question.

NR are solvent right now but NR is more of a mortgage broker than a bank and many large and trusted mortgage brokers have gone bust in the US. There is a possibility that Northern Rock could go bust and denial is not advised. Irish savers would be well advised to switch to Anglo Irish Bank and Rabobank with it's AAA rating.
 
I don't think many people will be actually be able to get to their money today, which is probably a good thing. I have a substantial amount there and although worried, they do have major assets at their disposal. The share price having fallen a good bit this morning is now recovering a bit. On Pat Kenny Shane Ross is telling us the money is safe and actually to buy Northern Rock shares now would not be a bad idea, as they will shoot up if another Bank makes a bid for Northern Rock! If I could get at some of my deposit I might just do that....
 
sadie said:
I have a substantial amount there and although worried

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On Pat Kenny Shane Ross is telling us the money is safe and actually to buy Northern Rock shares now would not be a bad idea

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If I could get at some of my deposit I might just do that....
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Er - you seem to be contradicting yourself a bit there. You are worried about your deposits but would buy shares in the holding bank if you could! Shane Ross is great gas* but I wouldn't necessarily act on his "advice" in such matters.

* And was very kind to my mother when, at the end of her tether about Vodafone share transfer complications following my father's death, she phoned him directly to ask him for his opinion!
 
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