Jump to content
Newcastle-Online

If N Rock go bust........................

Rob W

by Rob W
in Football

 Share

Recommended Posts

Liam Liam Liam O

Liam Liam Liam O

Posted
Posted

A good time to buy?

Excellent time to buy. Providing you see the shares as long term investments and not short term.

 

yeah.. get'em cheap and sell them 5 or so years on :thup:

 

Buy 'em now, there's a good chance Northern Rock will be taken over by one of the bigger boys (possibly american)

 

There's a good chance Northern Rock will be perfectly ok too

Link to post
Share on other sites
womblemaster

womblemaster

Posted
Posted

if you are thinking about buying this, then u need to watch out for 18th, the fed may or may not cut rates, and the dow will respond either way.

The ripples will spread across the pond to london.

 

imo its pretty risky investing in NR atmo.  Theres the chance of plenty of downside in the stockmarket over the next month.

 

Theres rumours of 2-3 american banks are on verge of collapse in early october.  Its unclear if the american bank will step in like the BOE has. 

 

Better to buy tanfield before 24th sep.  (if under1.60)  as they report 6month profits next week.

Link to post
Share on other sites
Guest toonlass

Guest toonlass

Posted
Posted

:frantic:

     Sept. 14 (Bloomberg) -- Hundreds of Northern Rock Plc

customers crowded into branches in London today to pull out

their savings after the mortgage-loan provider sought emergency

funding from the Bank of England.

     ``It's scary,'' said Peter Pye, 60, a retired university

lecturer standing in a line of about 30 people outside the

Moorgate branch in the financial district. ``I have my life's

savings in Northern Rock.'' He said he would withdraw a ``six-

figure'' sum and leave 5,000 pounds in the account.

     The Bank of England said it will provide emergency cash to

Northern Rock, Britain's third-largest mortgage provider, in

the nation's biggest bailout of a financial institution in 30

years. The rising cost of credit left the lender unable to make

new loans and stoked concern among customers about their money.

     Northern Rock, which has 1.4 million retail depositors and

800,000 mortgage customers, hasn't imposed any special limits

on withdrawals, spokesman Don Hunter said. The Newcastle,

England-based company, which traces its roots back to 1850, had

to restart its Internet banking site ``over a period of time''

today after unusually high usage froze the service, he said.

     ``It is understandable that customers are concerned,''

Hunter said. ``Their mortgages and savings are safe.''

     Northern Rock has 76 bank branches, according to Hunter.

By 11 a.m., dozens of people formed queues on the sidewalk

outside the Moorgate office, the Maddox Street branch in the

West End shopping district, and the Kingston Upon Thames outlet

in southwest London.

 

                            `No Risk'

 

     ``There is no risk,'' said James Hamilton, an analyst at

Numis Securities in London. ``The Bank of England said Northern

Rock is solvent.'' Hamilton said that ``as credit turmoil will

return to normal, Northern Rock's business will as well.''

     ``Why leave your money in a bank that obviously has some

major problems?'' said Michael Ribotham, 74. ``I'm not young

and don't have a chance to make it back again.'' Ribotham had

been waiting at Moorgate for about 40 minutes.

 

     Northern Rock was formed from a merger between two

building societies and the initial public offering of Northern

Rock Building Society in October 1997. The stock plunged as

much as 29 percent today. The lender said profit will trail

analysts' forecasts, blaming a ``severe liquidity squeeze'' and

rising short-term interest rates.

     ``I am going to take out the lot, every penny,'' said

William Gough, 75, queuing with about 30 people outside the

Maddox Street branch. Gough, from Belfast, in Northern Ireland,

was ``horrified'' to hear about Northern Rock's request for

emergency funding.

 

                        `On The Safe Side'

 

     Hunter, the bank's spokesman, was unable to say how many

customers were demanding to reduce or empty their accounts.

     ``I'm worried,'' said Jenny Western, 33, a photographer

from London. ``I am taking all my money out. Maybe everyone is

overreacting but I want to be on the safe side.''

     The bailout will ``help Northern Rock to fund its

operations during the current period of turbulence in financial

markets,'' the Bank of England, U.K. Treasury and Financial

Services Authority said in a joint statement.

     ``I don't think anything is going to happen because the

Bank of England won't allow it to happen,'' said Paul Delamere,

46, waiting at Maddox Street to withdraw his money. Still, he

was ``more comfortable'' with reducing his account.

 

 

Bloody Londoners :frantic:

 

 

 

Not just Londoners, I was in Morpeth yesterday and the queue at the Northern Rock stretched right down the main street, and my bezzy mate who works at the Newcastle building society has had her saturday off recalled and has to go in today as people are flooding there transferring their savings in. If this continues like this, it could cause a run on the building society(a la Mary Poppins when the little lad causes mayhem at his dad's bank over tuppence) and then the brown stuff would hit the fan.

Link to post
Share on other sites
thewellander

thewellander

Posted
Posted

So, what's the deal with Northern Rock? I live in Canada, so I don't really know much about what Northern Rock is, other than the fact that they seem to be in dire straights at the moment.

 

Are they going belly up? Does this mean we'll have a new sponsor and new shirts next year?

Link to post
Share on other sites
Guest redmayne

Guest redmayne

Posted
Posted

Northern Rock ain't close to going belly up. Even if 90% of their customers withdrew their money they would still be able to operate off the Bank of England loan.

 

They'd be pretty poopoo'd if they lose 90% of their customers....

Link to post
Share on other sites
indi

indi

Posted
Posted

 

MoneySavingExpert.com Special Emergency E-mail

Northern Rock Crisis: What customers and non-customers need to do now.

 

If you’ve got money in Northern Rock, you’re justifiably worried.  The media coverage makes it look like this will be the first 'run' on a bank for years.  Northern Rock customers have been queuing outside the bank and the website is struggling to pay out cash. As everyone's full of questions there's a special emergency guide on the site now; which should answer them.

 

Read the full emergency guide: Northern Rock Crisis Q&A Guide click here

 

What it says in a nutshell....

 

I'm no fan of banks, and with over 4 million bank charges reclaiming template letters downloaded from the site, they don't like me much. Yet here we agree, the most important thing is not to panic. Northern Rock is still solvent, it's got the Bank of England backing it, and the first £35,000 of savings you have with any bank are protected by the official Financial Services Compensation Scheme anyway. If you've got more money than that, in Northern Rock, or any bank, and are worried and want guaranteed peace of mind then spreading it across a few Savings Accounts so you've never more than £35,000 in any, will provide it.

Link to post
Share on other sites
merlin

merlin

Posted
Posted

Northern Rock is going to be sold off - Lloyds TSB has already made first enquiries about a bid.

This Financial Credit crunch has been coming for a long time - lending money to people who can't repay it may make the Govt popular as House prices rise, but that is coming to an end faster than the Titanic sunk.

 

House prices have already started to fall in the UK(down 6000 pounds av last month)and the rises in Interest Rates have not even begun to hit home properly yet.

Lenders are raising borrowing costs independently of the BOE as they seek to cover their own higher costs of borrowing in the Market.

 

Life is going to get a lot tougher now - Inflation is rising(cost of Oil going up steadily)so the Main Banks like the Fed, ECB & BOE have to be careful about lowering Rates too much, so anyone with a load on their Credit Card should do themselves a favour - get RID of the debt NOW..

 

There is no such thing as a free lunch, and people who have invested unwisely in property are going to get their fingers burnt ; property is always a decent LONG term buy, but the rises of the past 5 - 10 years are unsustainable - if you don't believe me, try Alan Greenspan ; he has just said the same thing.

 

Its just like shares - if you've bought at the Top of the Market, you are the worst-hit when it turns(as it ALWAYS does.).

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing
×
×
  • Create New...