Northern Rock bailed out by Bank of England

As we speak Northern Rock is the safest Bank in Britian or Ireland. It is the only bank to have a cast iron guarantee by a sovereign EU government for 100% of all deposit value.

Why would anyone transfer out of this full guarantee into another bank even AIB (Dont forget the ICI fiasco).This is IMO pure herd mentality in action.

If the balloon really goes up in the banking sector only NR customers are fully protected
 
Just checked www.moodys.com (you have to create an account, I already have one as I often have to check bond issuers ratings in work).

Bond Implied Rating is Ba3
Credit Default swap implied is Ba2
 
As the NR saga settles down it will not be long before those on this forum and in the media start to say “ I told you so – no need to panic”

I would like to thank all those who did panic especially those who were in line outside the bank.
You (or we I should say as I have withdrawn all but a token amount) have forced the UK government to make a spectacular offer of support to NR. They are the ones who are panicking!
We put our money on deposit to keep it safe. When the bank showed the slightest sign of weakness real or imagined it is the right thing to do to get out as fast as possible. I imagine like many others my NR deposits are just a part of a portfolio that includes shares and property. I accept that shares for example can be risky, but not deposits.
A deposit bank needs to be a ROCK!
So why did people rush to remove their money? I think it is because we have become accustomed to large institutions and government telling half-truths and twisting words and being miss-lead. This is seen in the small print that accompanies every transaction in modern life and lets face it who really reads it?
Basically we didn’t panic but we lost trust in the bank in large enough numbers enough to panic the government. Lets hope that the government (here in Ireland and in UK) now act to make sure this doesn’t happen again
 
Askew70:
...okay, I have veered into the scope of the other thread more than I had intended, but hopefully the moderators will consider enough of this post sufficiently relevant to the general view people are adopting of NR's service, and online services in general, to leave this post in this thread.
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LOL! I just read that other thread. :)

HighFlier:
As we speak Northern Rock is the safest Bank in Britian or Ireland. It is the only bank to have a cast iron guarantee by a sovereign EU government for 100% of all deposit value.
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For now.... I don't think that guarantee counts forever - just until the current situation stabilises. Who knows after that.

A large part of this fiasco has been caused by the UK regulatory authority's 90% guarantee on £33,000. This meant that any saver with between £2,000 and £35,000 still stood to lose something, even if only a few hundred. Even that was too much to risk. So, my advice, get rid of this damned 90% guarantee. Have 100% up to a certain point, then 0% thereafter. At least that way, people with up to 50K euro would have been less inclined to panic knowing they stood to lose nothing (delays in retrieving capital and loss of interest in the event of collapse aside).
 
magicbeans
the great ignorant unwashed masses
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where did I say that?
your superior intelligence posts
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your quote, not mine, so thank-you!
your superior belief
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your quote, not mine, so thank-you!
an ignorant silly paniciker
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where did I say that?
you "superior intellect types"
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your quote, not mine, so thank-you!
amused your superior intellect
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your quote, not mine, so thank-you!Remember to look where you plant your "magic beans" next time! :-)
 
Guys, now that we can all relax a bit I would award to "EuroDilbert" the award o most original name in this forum. What's your opinion?:D Maybe this is because I love Dilbert's comics...
 
I spent most of the weekend trying to log into the overburdened NR online system to transfer my money. Eventually got my request in on Saturday night.

I have spent most of yesterday/today logging into my BOI account to check if it has arrived yet.

I wonder will the BOI servers slow to a crawl as a result?
 
askew70 said:
If your local bank branch on the street opened its doors at arbitrary times, for a few minutes at a time, and gave you no clue as to what those times were, I would hope that people would be upset, so why forgive poor quality of service online?
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Funnily enough some banks do have doors exactly like those. You have to enter a first door, close it and then press a green button to open a second door (locking the first door in the process) before you can enter the bank. Everyone can't enter the bank at the exact same time but I haven't seen many people get as upset as you seem to be getting about it.
 
Hi folks,

We're trying to gather savers' stories for the Sunday Times' coverage of Northern Rock on Sunday. If you're interested in talking to us, please send me an email or PM.

Niall Brady
 
Sunday Times said:
Hi folks,

We're trying to gather savers' stories for the Sunday Times' coverage of Northern Rock on Sunday. If you're interested in talking to us, please send me an email or PM.

Niall Brady
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Will you be collecting stories off anyone who just sat back and relaxed, confortable in the knowledge that they'd nothing to worry about, or will it be similar to that lad quoted in todays Indo who spent 3 hours shivering in a queue in the middle September whilst wearing a t-shirt and sunglasses, and then moaned about the fact that they didn't supply cappuchinos and mars bars.

I can appreciate people having concerns for their savings but when those concerns are based solely on sensationalist journalism my empathy ebbs somewhat.
 
Jethro Tull said:
www.moodys.com or www.standardandpoors.com
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One of the reasons NR has been under pressure is because the rating agencies have been criticised and banks are not accepting these ratings.

NR did not even facilities to last 3 months which meant they were also vulnerable to any shock in the credit markets.

This is not sensationalist journalism, NR would most likely have gone bust without the guarantees from the BoE and UK govt.

The shocker is that no one in UK would believe the BoE and it took a govt guarantee to steady the ship.
 
Hi Howitzer,

I'd love to talk to anybody who's sticking with Northern Rock in the belief it's now the safest bank in Ireland, following the guarantees given by the UK chancellor of the exchequer. Interested?
 
Afuera said:
Funnily enough some banks do have doors exactly like those. You have to enter a first door, close it and then press a green button to open a second door (locking the first door in the process) before you can enter the bank. Everyone can't enter the bank at the exact same time but I haven't seen many people get as upset as you seem to be getting about it.
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Ah, you have me there. Clearly the banks are conspiring to keep us all locked out. They even put glass in the doors to create the illusion of there being no door so you should be careful that you don't bump your head as you try to walk in.

As for being upset, if I remember rightly yours is the only handbag that I see swinging in the other thread.
 
Sunday Times said:
Hi Howitzer,

I'd love to talk to anybody who's sticking with Northern Rock in the belief it's now the safest bank in Ireland, following the guarantees given by the UK chancellor of the exchequer. Interested?
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Well Bobby Robson was quoted as saying that he's opening an account with NR. I'm not sure if that's a ringing endorsement.

I'm afraid my savings are with Rabo so my credentials as an unnamed source wouldn't be too hot. However if a similar run of events were to apply I would have sat back. That's not just being smart cos it's not me, it's the fact that it's a bank with a very small branch network which has turned this into a "run on a bank" story.

This story was made for TV viewing. A bank that only has 1 branch in Dublin, and a similarly small number in London, was always going to make a great spectacle when more than 5 people arrived at once to withdraw their funds.
 
Re: Northern Rock and online banking capacity

Is there anyone on here who has left money in Northern Rock? I have a small amount in Northern Rock and thought about withdrawing it. It is in the UK but Im currently in ireland and will not be returning for a few weeks.
 
Re: Northern Rock and online banking capacity

M_Boyle said:
Is there anyone on here who has left money in Northern Rock? I have a small amount in Northern Rock and thought about withdrawing it. It is in the UK but Im currently in the west of ireland and will not be returning for a few weeks.
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I believe that some people, at least, have left money in, and I personally know of at least three people that have done so.
 
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askew70

i've left a little over €1000 on deposit as its the minimum to avail of the 4.75% rate.

I believe things will settle down and n.rock will be ok, but probably owned by a bigger fish eventually.

Have left the account open so don't have to go through all those ID hoops again. In the meantime have opened accounts with Rabodirect for hubby and I and have transferred some but not all N. rock funds there.

Looking for a home for the rest - tried the first active site re the eAccount but gave up - their online forms are unclear in places and too much personal info requested.
 
Has anyone received new password??

Like many others I too have been locked out of my account?
Has anyone actually got a new password posted out to them??
 
The other banks must be licking their lips at the thought of all this Northern Rock money coming their way
Presumably no one will actually get done for this crisis. If the central banks are going to bail out any bank that gets into trouble then what message does that send?
 
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