Friday, Sep 14, 2007
Reports of a good old fashioned bank run on NR
Sky News: Clients Ignore Northern Rock's Plea
"Northern Rock customers appear to be ignoring the bank's call to stay calm over fears of its financial future."
"... People in the queue burst out laughing when one staff member asked them: "Does anyone want to pay money in?" .. "
Can this really happen in 2007 Britain? Sounds like a scene from 1929.
Posted by voiceofreason @ 11:54 AM (2071 views) Add Comment
28 Comments
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1. Cheekie Charlie said...
Posted again in panic:
Where's the safest place for my savings folk's? I'm currently with RBS do you have any smut on these?
2. paul said...
Oh dear. This is the start of the end for Northern Rock, and the UK property market.
When the CEO appears on radio telling everyone not to panic, the game is up.
3. Alan said...
Well, at least things sound good humoured at the NR branch.
Not so on the other side of the pond where there is a lot of grief and repossesions are rising fast.
NR has put a lot more pressure on the government, and the websites and papers are full of borrowing "advice" - a pity this wasn't dispensed a few years ago.
4. Tpd said...
Looks like it.....just walked past the branch in Maddox St, London and wondered what all the people/media were doing! Sure enough, it was a branch of Northern Rock packed to the rafters.
5. Moley20 said...
How wants to run a book on the next victim? B&B, Abbey? Barclays? What about the american Investment Banks.? or have they knowly sold all their exposure to guliable investors?
6. Cheekie Charlie said...
http://news.bbc.co.uk/1/hi/business/6994528.stm
"The longer credit market turmoil persists, the more the market will view currencies with housing market excesses with suspicion," said ABN Amro analysts.
"The UK and the pound may be seen as the next cab off the rank."
7. tyrellcorporation said...
Where IS safe for your cash now though? One of the big 4 high-street banks?
8. M2 said...
You can check out free financial strength ratings from Standard & Poors and Moody's etc. but it is worth remembering that ratings agencies can be slow to react to weakening balance sheets - for example, Enron's corporate paper had a AAA rating 2 weeks before the doors closed.
If you want ultimate safety, then you should hold either 3 month US Treasury bills or a Swiss money market fund (via your Swiss bank).
9. dbnazz1 said...
What does anyone feel about the situation at Barclays this has gone a bit quite.
10. paul said...
"Where IS safe for your cash now though?"
Yes, and how is Barclays doing these days??
11. speculatorone said...
I have a big chunk of money from my house sale sitting in Nationwide's esavings.
How safe are they as they operate like Northern Rock I would imagine?
I think everyone who has S2R is also thinking the same.
Is there anywhere safe now?
12. dbnazz1 said...
SPECULATRON...
Like you i also have a large amount of savings with Nationwide. The form of operation you are talking about is Liability Banking. Do nationwide operate by liability banking????
does anybody know the answer to this?????
13. uncle chris said...
Think I will get our savings out of Alliance & Leicester quick and put it into government income bonds - judging by the recent falls in share price, they are another bank who seem to be overexposed.
14. bidin'matime said...
Speculatorone - divide it up into smaller amounts - no more than £35k in any one account - the first £2k is guaranteed, then 90% of the next £33k. Failing that, buy gold and dig a big hole to hide it in...
15. Lloyd said...
Reminds me of the old black and white Photographs from1929 and the great depression. Can't wait to see the boys and girls from the City throwing themselves from the windows. Oh no they don't do that as it is no longer their money they have lost but some poor sap who trusted the corrupt banking system, BOE and Gordon (I did not rob your pension) Brown!
16. Bug16 said...
Blimey! I walk past that branch on the way home!
17. Aloha said...
if it is not safe any FSA regulated banks you can assume that then the safest place in under your pillow as long as the money doesnt devaluate
18. Eggsy said...
The safe haven of choice when banks start to look risky places for your savings is gold.
Given that bank holdings in the UK are only guaranteed by the govt up to 30k or so, and then only 90% of the value if the bank did go under, I'd suggest anyone with more than 30k either spreads it about (the guarantees apply per customer per bank) or puts into into gold.
bullionvault.com makes it relatively simple and cheap to buy investment gold without having to handle it yourself. Their holdings are quite open and transparent and the important point is that you own the gold, so even if bullionvault did go under, they don't take your gold with them.
Considering the other risks in the worldwide financial system - inflation, oil price rises, runs on banks, house price declines, emergency interest rate cuts... gold looks a pretty safe bet to me.
19. Renterabroad said...
How strange it is seeing press pics of such patient and orderly queues of panicked (?) customers outside NR... Just how dramatic an affect will their withdrawals have on the bank and public sentiment?
20. Renterabroad said...
How strange it is seeing press pics of such patient and orderly queues of panicked (?) customers outside NR... Just how dramatic an effect will their withdrawals have on the bank and public sentiment?
21. James said...
Best place to put your money? NRK when they hit 450... Massively oversold now.
22. Mark said...
sooo funny
we split our accounts up months ago, to avoid the queues......
my advise stay with big banks like hsbc, keep less than 33k in you account, do not have more money in other accounts at same bank... use another bank... so 33k in each bank, you will be reasonably safe. and you wont lose all your money when the world goes pop.........dont buy shares in northern rock... dead duck now...lol try indian film company(IFC) it invests etc in bollywood,, a real potential gold mine...
My opinion, take proper legal advice first... dont sue me....
23. uncle tom said...
It's not just NR in trouble - check out Paragon's share price today...
24. Kaitain said...
“With hindsight, if we had seen this coming, would we have run the same strategy?” said Adam J. Applegarth, chief executive of the bank. “No. But hindsight is a great thing, and I don’t think anybody else saw this coming either.”
(Picks teeth.)
25. little professor said...
Did anyone hear the CEO on the Today programme? Sounded totally unfeeling and unconcerned for the millions of customers out there. E.g. when told about the problems people were having trying to access their website, rather than saying he would look into it or promising to increase capacity, he said they'd just have to keep trying.
He sounded like a right Berkshire hunt, a real old-fashioned fat cat who is safe in the knowledge that he will be getting a big severance payday whatever happens.
26. Yes said...
cheeky charlie
re : where is it safe to put your savings
I am currently swapping my savings from alliance and leicester into a cash isa with NS+I, they give 100% gurantee of saftey for your money, I'm no expert but I'm hoping I made the right decision.
27. lvmreader said...
Jail that idiot, Adam J. Appletoss
28. lvmreader said...
LVMReader's predictions of next "bad news"
UK:
Alliance & Leicester
Bradford & Bingley
Barclays
Halifax
US:
Goldman
Bear
Citigroup
Lehman
CDS is a great way to express a view. Get quotes on the CDS (insurance costs of the bonds) on all these firms:
Black Swans:
UK
Natwest
LLoyds
US
JP Morgan