Northern Rock bailed out by Bank of England

Well having transacted from NR on Saturday, the money appeared in BOI today with a note saying..... (think madonna - like a virgin)
"I made it through the wilderness
Some how I made it thruu uh uh
Didn't know how lost I was until I found you....."

Don;t know what all the fuss was about folks :rolleyes:
 
sapmanie said:
I've over €60,000 in NR and didn't touch any of it during the whole debacle. Still earning one of highest rates of interest around AND is partially guaranteed by both the law and FULLY GUARANTEED by the government of the United Kingdom.
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Do you live in the UK? I can't see the UK government spending €2.4 billion of UK taxpayer money to repay the deposits of Irish citizens, no matter what they say. Even the wording of the guarantee is a bit lax. However, in so far as it stopped the run, your money is probably safe (at least for now).

In the current market circumstances, and because of the importance I place on maintaining a stable banking system and public confidence in it, I can announce today that following discussions with the Governor and the Chairman of the FSA, should it be necessary, we, with the Bank of England, would put in place arrangements that would guarantee all the existing deposits in Northern Rock during the current instability in the financial markets.
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How this has been read as somehow making Northern Rock the safest place for your money in perpetuity I'll never know.
 
I opened a direct saver account with Northern Rock about 5 or 6 years ago, before I opened it the account I telephoned the Irish Central bank in Dublin and I was told that my money would be guranteed for the first 50K euro.

I don't know who I was talking to at the central bank, nor do I have the gurantee in writing.

I havn't heard about this gurantee anywhere since on the radio etc.

Patspost
 
Where was still a small group of people queing outside just before 8:00 this morning. Looks like we just dont trust the Bank of England or our own TDs:-)
 
My money appeared in BOI this morning. Started process (same day transfer) on Sat morn at 6am. Its seems like an age since the NR saga began. Its been a painful learning curve. At least my money is out and now I must make sure I put it into safer havens.
 
room305 said:
I can't see the UK government spending €2.4 billion of UK taxpayer money to repay the deposits of Irish citizens, no matter what they say.
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They confirmed just that yesterday.

Basically, you can either accept that all Northern Rock deposits are guaranteed (temporarily at least), as repeatedly stated now, or instead believe that everyone involved is lying to the dozens of thousands of customers & only statutory guarantees will apply for everyone - It's thinking like this which primarily caused the run in the first place.
 
TSThomas said:
It's thinking like this which primarily caused the run in the first place.
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That and reckless behaviour by the bank's management. If you're happy with the guarantees then fair enough. Personally I don't see why anyone would even want to test them.
 
Lionheart said:
My money appeared in BOI this morning. Started process (same day transfer) on Sat morn at 6am. Its seems like an age since the NR saga began. Its been a painful learning curve. At least my money is out and now I must make sure I put it into safer havens.
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Still waiting for my BoI account to be credited.
Did a same day transfer over the phone on Friday afternoon, was told it would be in the account by 4pm on Monday...

To think that the last time there was a "bank run" savers had mere shillings in their accounts.
Now savers have, on average, close to six figure sums.
More reason to panic now than ever.
 
Gautama said:
Still waiting for my BoI account to be credited.
Did a same day transfer over the phone on Friday afternoon, was told it would be in the account by 4pm on Monday...

To think that the last time there was a "bank run" savers had mere shillings in their accounts.
Now savers have, on average, close to six figure sums.
More reason to panic now than ever.
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I carried out a withdrawl in the early hours of Friday morning. It still hasn't hit my BOI account as of 13:20 today. The "value date" on my Northern Rock account for "Electronic Payment Sent To Your Bank" was 17/09/07 (Monday).

BOI, for all their ICT systems, have never been the most efficient with EFT payments either. When making a payment on BOI 365 online from my BOI current account to BOI Mastercard, the money leaves my current account instantly, but, it can sometimes take a couple of working days to hit my Mastercard account. Someone's earning money somewhere!

I'm not remotely worried at this stage, but, consumer confidence in internet banking has really suffered over the past week.
 
The UK government’s decision to guarantee all deposits is completely understandable. First, depositors vote. Second, any politician knew that the sight of thousands of ordinary people trying to obtain their money from a supposedly regulated institution was fatal to the government’s reputation for competence. Third, it is absurd to expect ordinary people to assess the strategy of a long-established institution, particularly when it increases its loans massively over a short period.
As the public panicked, so did politicians. A solvent government will not let ordinary depositors lose significant quantities of money. Deposit insurance is the way to eliminate the possibility. But in the UK such insurance covers only 100 per cent of the first £2,000 and 90 per cent of the next £33,000. Worse, in the case of an insolvency, depositors take their place at the back of a lengthy queue. British deposit insurance does not prevent runs from banks in trouble. It guarantees they will happen. The run was quite rational
 
NR have taken a few euro too much out of my account and brought me below the EUR 1000 threshold which is at only 0.1% :mad:
My request is still in the pending transaction view for the correct amount that would have kept it above EUR 1000.
 
Just wondering what others would advise re my 90k one year bond that I have with NR. I did request a transfer on Sun., but now that the panic has subsided, I'm thinking of returning it, otherwise I would lose out on about 550 euro interest. I regret now moving my money from the demand online to the fixed rate, but the interest was slightly higher. The bond is up in may '08. Any opinions gratefully received.

Titch
 
Interestingly, Rabodirect are sending out e-mails to customers giving assurances that their bank is very healthy and a safe place to keep your money. It's not really very surprising that they have decided to do this, especially as people were still being reported as queueing outside NR's office in Dublin this morning, but a good PR move nonetheless.

They even claim that their online bank "surpasses all other banks in Ireland in internet security", which brought a tear to my eye. :)
 
I electronically transferred my money from NR on Sunday night and received a phone call today telling me that it would be next week before the money hit my account. They're not phoning everybody; I had emailed them (twice) asking them to phone me.
 
europhile said:
I electronically transferred my money from NR on Sunday night and received a phone call today telling me that it would be next week before the money hit my account. They're not phoning everybody; I had emailed them (twice) asking them to phone me.
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Ciao Jethro, Ciao europhile, I did action my close of account on saturday night. I still dont see any effects...
 
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