Friday, Sep 14, 2007
The reality of Brown's economic 'miracle' revealed
MoneyWeek: Will there be a run on Northern Rock?
Northern Rock has been forced to borrow from the Bank of England at the penal rate as other sources of funding have dried up. Shares have already plummeted, but what will happen if customers rush to withdraw their cash?
Posted by mary @ 10:47 AM (883 views) Add Comment
8 Comments
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1. cornishman said...
“the FSA judges that Northern Rock is solvent, exceeds its regulatory capital requirement and has a good quality loan book.”
Yeah right... look at the top of the page:
http://www.northernrock.co.uk/intermediaries/intermediaries_index.asp
2. Cheekie Charlie said...
Their already doing it! Their internet site has crashed and their branches are snowed under.
3. Sosoon said...
Try and log-in to Northern Rock this is the message you get
Due to a temporary technical issue, we are not able to offer our full range of services. We expect to resume normal service shortly.
In the meantime please feel free to contact us.
We are sorry for any inconvenience. Please try again later.
4. sosoon said...
This is the message Northern Rock On-line customers are getting.
Due to a temporary technical issue, we are not able to offer our full range of services. We expect to resume normal service shortly.
In the meantime please feel free to contact us.
We are sorry for any inconvenience. Please try again later.
5. C'mon Correction said...
I won't be surprised if they've taken their website down on purpose and close their phone-lines in order to stop people who can't get to a branch from withdrawing cash.
Northern Rock to be given take-over bid within 12 months I reckon, for a fraction of it's recent price.
6. dbnazz1 said...
Yes.A run for the exit if depositors have any sense.
7. captain sensible said...
Didn't US banks in the 1920s and 30s try shutting their customers out - just increased the panic and made the run on the banks worse. This must be the first occassion in the UK where a bank has faced this situation in the age of phone and internet banking. A rather dangerous experiment in seeing just how quickly the panic spreads.
8. mrmickey said...
I mentioned some time ago the reason why old people keep cash under the sofa rather than in the bank, it's because they've experienced bank runs and have a healthy distrust of banks, most people alive now in this country have never seen a bank run and probably wouldn't know one if it punched them in the face, now might be the time to start putting a bit of cash under the sofa like the old folks because one day you might turn up at the cash point and find your account has been frozen.