Northern Rock bailed out by Bank of England

I'm very confused now. I have 20k in NR and some people on here are saying the 'Guarantee' given by the British government should be taken with a pinch of salt.
I don't have any other account other than my AIB current account so I'm reluctant to withdraw the 20k until I have somewhere other than a current account to place it.
Would it be unwise to leave my 20k in NR for another couple of weeks until I sort out a new home for my cash rather than have it all sitting in my AIB current account, I don't know which option is more appealing?! I wish I didn't have to move my money from NR, but after reading this thread it seems the general consensus is there is no hope for this bank?
 
chewchew said:
I'm very confused now. I have 20k in NR and some people on here are saying the 'Guarantee' given by the British government should be taken with a pinch of salt.
I don't have any other account other than my AIB current account so I'm reluctant to withdraw the 20k until I have somewhere other than a current account to place it.
Would it be unwise to leave my 20k in NR for another couple of weeks until I sort out a new home for my cash rather than have it all sitting in my AIB current account, I don't know which option is more appealing?! I wish I didn't have to move my money from NR, but after reading this thread it seems the general consensus is there is no hope for this bank?
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This thread tends to give a very particular view of the whole Northern Rock saga. I think most people who were content the bank was solvent and realised the political consequences of letting depositors lose money in an irrational bank run probably didn't post much. This thread is more a place for people who wanted to get the money out as fast as possible to get together, see how they were getting on and offer tips on how best to handle the overloaded online system etc. As such, reading it and it alone could leave you with the feeling it was the end of the world. I have a similiar amount in NR and am leaving it there. If you're more comfortable out of NR then by all means arrange a new home for your cash and move it there but you shouldn't feel spooked to suddenly shunt it off to AIB on the basis of a few posts on here.
 
Nemesis said:
This thread tends to give a very particular view of the whole Northern Rock saga. I think most people who were content the bank was solvent and realised the political consequences of letting depositors lose money in an irrational bank run probably didn't post much. This thread is more a place for people who wanted to get the money out as fast as possible to get together, see how they were getting on and offer tips on how best to handle the overloaded online system etc. As such, reading it and it alone could leave you with the feeling it was the end of the world. I have a similiar amount in NR and am leaving it there. If you're more comfortable out of NR then by all means arrange a new home for your cash and move it there but you shouldn't feel spooked to suddenly shunt it off to AIB on the basis of a few posts on here.
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Must say I agree. I'm leaving my cash in NR as well.
 
If guaranteed short / medium term access to your money is not important to you, i.e. you don’t mind the risk of perhaps not getting access to the money for up to a couple of months maybe even a year, in the event of any more bank insolvency problems, then you could sit tight. (i.e. The safety of Northern Wreck deposit money is now supposedly guaranteed, but if you have to claim the money off BoE / UK Gov, nobody knows how long this would take)

It all depends if you need to know you can get at your money in the short term for major purchases etc. - I do and so did many others that’s why there was a bank run.

I'm still surprised that the above point was/still is missed by the press and those who assumed people queuing outside the bank were all just ignorant panicers.
 
Just talked with someone in the call center. Hopefully the withdrawal I inputed on saturday night should be processed tomorrow...:confused:

I hope this will end up soon for all of us so that we can start again positively...
 
I carried out a same day withdrawal on sat morning to be processed on mon, still no money in my account. I contacted NR who assured me my money had left NR and was probably still in it's clearing facility and should be in my bank tomorrow. I bank with Ulster bank and they said they update their online accounts at midnight so if anyone wants a relieved (I hope) nights sleep and are in similar position to me, it might be worth checking their account 00.01.
 
Me neither, it was easier to get through at the weekend!! I thought things were supposed to be more relaxed now? My wife spoke to the Newcastle number and was told our withdrawal from Sat am was going through and should be in Ulster on Friday. The guy also said the web site would be down until this evening, I don't know if he's correct but I certainly am not connecting. At this stage it’s just exceptionally bad service.
 
Nemesis said:
I think most people who were content the bank was solvent and realised the political consequences of letting depositors lose money in an irrational bank run probably didn't post much.
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Au contraire, the bank run was anything but irrational. The management had overextended themselves in borrowing short and lending long to such an extent that they felt it necessary to apply for emergency funding from the Bank of England to remain solvent. Hardly confidence inspiring.

After conducting due diligence the BoE satisfied themselves that NR was indeed still solvent and approved the emergency funding. Of course this due diligence was predicated on two factors -

(1) £24 billion in deposits
(2) The 'credit crunch' being a short term phenomenon

We know (1) no longer holds and the jury is still out on (2). I think it's way too much risk to consider for what is supposed to be a safe and liquid means of storing cash. Government guarantee or not, how easy do you think it will be to get your money back if the bank goes into receivership? Are you being rewarded adequately for this potentially major inconvenience?

As Stephen Bland of the Motley Fool puts it:
A vast amount of rubbish has been spouted in the media about Northern since the story broke. I've just heard a radio discussion, for example, where some 'expert' (yes them again) was asked by the reporter whether it was 'rational' for depositors to withdraw money. This was in the light of the large number of people who are doing so. He said it was not rational.[FONT=arial,helvetica][SIZE=-1]

But he was entirely wrong. Of course it's rational. Why would someone keep money in a bank that has such a bad smell around it? If I had some money there I would be pulling it out pretty damn quick too. My advice to all depositors is to draw out their money asap. Right now if you haven't already. What are you waiting for, get in line! Even though it is highly unlikely that you will lose any money, look at this way, what do you have to gain by leaving it there? Nothing. Don't trust politicians and "experts", they will too frequently let you down.

Similarly the word 'panic' has been thrown around all the time in the media. You can't hear the words 'Northern Rock' without the word 'panic' being attached to it. But why is withdrawing your money in these circumstances described as panic? If people calmly wait in line at a branch to take out their money or try and do so online, it isn't panic at all. They've been told there is a problem at Northern and simply don't want to take any chances. That isn't panic, it's just protecting themselves. The scenes I've seen have been orderly queues, not riots. [/SIZE][/FONT]
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I requested a withdrawl on Sunday morning and was told when I rang today that it would probably be Friday or monday before the funds arrived. They said they were just swamped and everything was taking longer than usual. Just in case anyone else is waiting...
 
chewchew said:
I'm very confused now. I have 20k in NR and some people on here are saying the 'Guarantee' given by the British government should be taken with a pinch of salt.
I don't have any other account other than my AIB current account so I'm reluctant to withdraw the 20k until I have somewhere other than a current account to place it.
Would it be unwise to leave my 20k in NR for another couple of weeks until I sort out a new home for my cash rather than have it all sitting in my AIB current account, I don't know which option is more appealing?! I wish I didn't have to move my money from NR, but after reading this thread it seems the general consensus is there is no hope for this bank?
Click to expand...

A bird in the hand is worth two in the bush.
Get out of Northern Rock.
Would you rather have €20,000 sitting in a current account making no interest or have €0 to €20,000 in a savings account making 4.5% interest?

I don't see how a UK taxpayer would be happy to have their tax payers' money used to bail out the Irish to the tune of €2.4 billion.

As for Brian Cowen saying everything's ok, think about it... the next general election is 4.5 years away. And he's not the most inspiring man of all time is he? When you think of he's predecessors (McCreevey, Quinn, Ahern)... he's a born minister of fun, not finance!
 
While STILL waiting tentatively for money to land back in home account, I've been brushing up on this moody rating and look what I found (this might help those mulling over the 'should I stay or should I go' issue)

Moody is looking to revise its rating for NR.

LONDON (Reuters) - Moody's Investors Service affirmed its short-term rime-1 rating on mortgage lender Northern Rock on Monday but placed its long-term investment-grade Aa3 rating on review "direction uncertain"..... see link

[broken link removed]

Currently trying to find ratings for Anglo Irish Bank corporation after seeing their rates.....look kinda good.....don't want to be bitten again though......
Any alternative suggestions anyone?? 200k and I need relatively instant access so can't tie it up.
In the meantime though I've been having great fun going into local banks waving 200k in their faces:D ....
 
I'm starting up my own bank. It's called Bank of Magic Hotpress Sock & Matress. To temp all the rate tarts out there I pay 5.9% when I feel like it, and if you email me your account details, passwords and favourite places - I'll take care of the rest. :)

You can withdraw your money sometimes, but remember I'm only home in the evenings, and may be using my phone and email myself. The hotpress will be fitted with a nightsafe but remember there will be a large heavy timelock sometimes on the matress.

I also do personal loans for anyone, whatever you credit history, at 6.9% (per month) If you don’t pay I send round big mickey with his black and decker drill.

If enough of you "invest" with me, your money will be guaranteed by an announcement made by local Councillor Joe Smiley, when enough of you complain. If you que outside free tea, biscuits and sympathy will be provided by me ma. (Though please note I may be in my Spainish branch during such events).

Term and conditions apply.
(I guarantee all my hidden bank charges will be favorable) (for me)
 
magicbeans said:
The safety of Northern Wreck deposit money is now supposedly guaranteed, but if you have to claim the money off BoE / UK Gov, nobody knows how long this would take.
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Thats a very important point. The BOE are not guaranteeing NR against insolvency. Who knows what damage has been done to their solvency this past week.

If they do go belly up, their online demand account turns into, at best, a 6 month notice, no interest account.
 
magicbeans said:
I'm starting up my own bank. It's called Bank of Magic Hotpress Sock & Matress. To temp all the rate tarts out there I pay 5.9% when I feel like it, and if you email me your account details, passwords and favourite places - I'll take care of the rest. :)
Click to expand...

This is a so-called "fraudulent attack" as I can see from the web-site of my bank!!! Let me call them asap on this!!!:D :D :D :D :D :D
 
Hi,
can anyone tell me the office hours the NR office is open ? Do you know if they are open on Saturday ?
Thanks,
M.
 
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