Thursday, Sep 20, 2007
A partial return to sanity... against Gordon's wishes?
Times: New Northern Rock savers left out in the cold
The saver's shares slide as Alistair Darling, the Chancellor, refuses to guarantee any new customer accounts. Shares in Northern Rock slid almost a third as the Government threw an obstacle in the way of a Northern Rock recovery this morning by refusing to stand behind any new accounts opened from today. The move by the Treasury - which at the same time guaranteed the rights of existing borrowers - left the Tyneside lender isolated and was seen as making a rescue takeover significantly less likely
Posted by confused76 @ 10:02 AM (721 views) Add Comment
9 Comments
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1. Dstars said...
Damn. I wanted to close my NS & I and stick it in a new Noerthern Rock account.
2. Ticktock said...
If they guaranteed new deposits at Northern Rock, why would anybody bother with Government bonds?
The worlds cash would pile in for the higher yield, and the Government would effectively become guarantor for the worlds liquidity.
Not even this Government could be that stupid. Could they?
3. tyrellcorporation said...
Labour can't help themselves. They see intervention as far superior to market forces and this is now the result and this will be their undoing. Darling is now caught up in a web of bad decisions and consequences. Rather than helping the situation, intervention will actually make it worse.
4. uncle tom said...
There was no way the govt could give an ongoing guarantee for new accounts - I'm surprised this wasn't made clear at the outset
5. speculatorone said...
This makes no sense to me, politically think about what they have said. We will only protect a small number of saving accounts with NR this time. It won't happen again, but say a run started on A@L would they let it collapse? It's one rule for one and not another.
This government stink...
6. Refusetobuy said...
Agree with speculatorone. Not logical.
A new depositor at NR is the same as a new depositor at A&L, except the A&L depositor will(?) be guaranteed their savings.
7. bidin'matime said...
Mugabe must be laughing in his cocoa as he watches the UK government apply banking principles employed by his regime for many years...
8. inbreda said...
UT - it wasn't made clear at the outset because the idiots didn't think that far ahead. What concerns me most is that they are fighting fires without regard to the bigger problem. Another confirmation that the UK is in deep deep trouble.
I loved the way Gordo blamed all the recent trouble as being due to global forces and therefore out of his control. But he was happy to take the kudos of a low inflation economy for the last N years, even though that was a result of global forces too. Bunch of lieing idiots. I have no faith in them being able to solve this problem.
9. p. doff said...
Darling's earlier statement was carefully worded. He said that EXISTING account holders deposits would be protected. Typical politician speak.