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Realistbear

S K Y --on Now 9:24 Am Saturday

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NR have Qs of hundreds forming but are only allowing in 5 at a time. They say many will not get in before closing time. Is this a go slow? Will they start pushing and shoving soon and turn a bit nasty?

No one belives the banks anymore. Brown promised this kind of thing would not happen in a miracle economy.

Next wek is going to be very turbulent and I doubt Ben is going to bail anyone out either.

Edited by Realistbear

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NR have Qs of hundreds forming but are only allowing in 5 at a time. They say many will not get in before closing time. Is this a go slow? Will they start pushing and shoving soon and turn a bit nasty?

No one belives the banks anymore. Brown promised this kind of thing would not happen in a miracle economy.

Next wek is going to be very turbulent and I doubt Ben is going to bail anyone out either.

...this is 'boom and bust.....when is the Brown interview....?..... :o:o:o

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Guy on radio 4 just a few minutes ago calculatd that the BoE funds available for NR would just about cover the deposits of ordinary people. This was based on the assumption that the BoE has used the NR assets as colateral, and then made available up to 95% of the colateral value. This just about balances out what would be required if all depositors jumped ship.

My question then: OK, they all jump ship, how is this bank going to be ina position to lend with all its assets in hock to the BoE: DOes this mean that this bank is effectively broke, because without new lending, its not earning? Is it now an empty shell?

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those people in kingston were not going to get their money back.... not today.... maybe not ever.

they were still serving the first 5 customers according to the sky news woman.

they wont get the money back because the bank does not have it. they have lent it for 125% mortgages.

if those 'silver savers' wernt so elderly they would have broken the door down.

just wait till those balances start to clear. how will NR pay the wages and rent ?

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Guy on radio 4 just a few minutes ago calculatd that the BoE funds available for NR would just about cover the deposits of ordinary people. This was based on the assumption that the BoE has used the NR assets as colateral, and then made available up to 95% of the colateral value. This just about balances out what would be required if all depositors jumped ship.

My question then: OK, they all jump ship, how is this bank going to be ina position to lend with all its assets in hock to the BoE: DOes this mean that this bank is effectively broke, because without new lending, its not earning? Is it now an empty shell?

Presumably it will have to call in loans (mortgages) early if its ratios fall below the minimum levels. Or it could tap its shareholders in a rights issue (yeah, right!). So will we see forced property sales as a result of this debacle?

NR is no longer a going concern and has to sell itself for as close to book value as it can get. I expect the BoE will have insisted on this and is providing the bridging loan to enable an orderly transition of ownership.

Confidence is all in banking, NR appears to have forgotten this.

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those people in kingston were not going to get their money back.... not today.... maybe not ever.

they were still serving the first 5 customers according to the sky news woman.

they wont get the money back because the bank does not have it. they have lent it for 125% mortgages.

if those 'silver savers' wernt so elderly they would have broken the door down.

just wait till those balances start to clear. how will NR pay the wages and rent ?

If they lose their life savings, at least the price of their house went up. :blink:

Just think, the Boomers could lose their life savings and then their house prices could crash.

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With this spill over Monday to other Building Socities who have also gone the 125% mortgage route IO SI etc? The mindset of the hseeple is "we don't trust them or what they say." The worst mistake NR made was having that spivvy looking CEO say not to panic. People instantly think Corporal__________ in Dad's Army.

Its all a bit surreal. Bank runs? :blink:

If I had money in a BS I would also be withdrawing it. IN fact I acted about 2 weeks ago and withdrew my STR fund out of money market and deposited it in funds that are guaranteed by the Fed. If everything goes **** down there is no safe haven. And---no there will be no money to buy gold either!

Who are the riskiest BS after NR? Abbey must be one surely?

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With this spill over Monday to other Building Socities who have also gone the 125% mortgage route IO SI etc? The mindset of the hseeple is "we don't trust them or what they say." The worst mistake NR made was having that spivvy looking CEO say not to panic. People instantly think Corporal__________ in Dad's Army.

Its all a bit surreal. Bank runs? :blink:

If I had money in a BS I would also be withdrawing it. IN fact I acted about 2 weeks ago and withdrew my STR fund out of money market and deposited it in funds that are guaranteed by the Fed. If everything goes **** down there is no safe haven. And---no there will be no money to buy gold either!

Who are the riskiest BS after NR? Abbey must be one surely?

Interesting- but surely the mind of a sheep is determined by the herd- in this case the media- they only started queueing when theyd heard it on the news- so the question is, who is going to need emergency lending? dont foregt the rest of the backs lapped up 4.4bn pounds in an hour or so this week, but sheeple are not yet queueing at other banks doors

Edited by Bloo Loo

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Guest portwinestain

I've just watched this on SKY's website. Unbelievable. Flipped through the front pages of the newspapes too. Panic on the streets indeed.

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Dream on Realist Bear

US rates down by at least 0.5%

The US is a Plutocracy. The interests of the elite come before: ordinary people that work for a living and minor matters such as inflation

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I've just watched this on SKY's website. Unbelievable. Flipped through the front pages of the newspapes too. Panic on the streets indeed.

Seems to me it wouldn't take much - a leakage of bad news from another BS or Bank - for panic to spread to all BS's and banks. That's when it gets really dangerous. Even sound banks fail when depositors lose confidence and withdraw funds in a panic. At that point one has no option but to join the herd and panic with them - hopefully at the head of the queue. Bank runs are largely irrational - that's what makes them so dangerous. The bad take the good down with them.

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I hope not! I have a 30K saving bond with Abbey :lol: I don't think they'll go down easily as Santander are the largest financial group in the Eurozone and the seventh largest in the world by profit.

Canary wharf- the biggest building in London- was the worlds largest bankruptcy also

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I hope not! I have a 30K saving bond with Abbey :lol: I don't think they'll go down easily as Santander are the largest financial group in the Eurozone and the seventh largest in the world by profit.

I hope for your sake Santander hasn't got a large loan book backed by Spanish property! ;)

Prices there are in free fall.

By the way I believe HSBC are by far the biggest bank in Europe.

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Guest Bart of Darkness

Interestingly I am unable to log on to HSBC business banking this morning, the first time that's ever happened.

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These pictures are going worldwide. Not exactly what you want to keep up sterling, particularly if the BoE end up with a massive bill for bail out if (when?) NR default on their loans. Maybe now the irrational belief in Gordon's miracle is going to be shattered for a long time.

Its panic and a classic bank run. Give the low requirements of fractional reserve banking these days, NR must be in deep trouble now. From Sky:

At one point yesterday the bank's internet service toppled under the strain, triggering more customer panic. That prompted one Cheltenham couple to barricade their bank manager in her office after she refused to let them have their £1m nest egg.

Are B&B next ? Who would believe any reassurances from Gordon and Darling after NuLab had promised to bail out pensions, and then once they collapsed refused. Then there are the 700,000 time bared endowment claims, which after recent court rulings, it turns out should not have been bared. However the FSA just sticks two fingers up to the legal rulings and refuses to allow them.

This Govt aren't trusted because of their contempt for the public and inability to tell the truth.

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My question then: OK, they all jump ship, how is this bank going to be ina position to lend with all its assets in hock to the BoE: DOes this mean that this bank is effectively broke, because without new lending, its not earning? Is it now an empty shell?

I think it's game over for NR

That £1B was just money withdrawn from branches yesterday. It continues today. And that's out of a total of £5,6B

There is £9B postal accounts and £4B interenet accounts.

They have no idea how much money is going to be withdrawn yet, those with postal accounts have to write in to request a withdrawl!!!!!!

The credit markets aren't going to improve, NR are borrrowing money at 6.75%

There is no way to survive this as even if they did as house prices are now officially going south and repos are about to rocket, because of higher borrowing costs.

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