Goldfinger Posted October 9, 2007 Share Posted October 9, 2007 http://www.bloomberg.com/apps/news?pid=206...&refer=home Oct. 9 (Bloomberg) -- Northern Rock Plc, the U.K. mortgage lender bailed out last month by the Bank of England, said the government will now guarantee all customer deposits until financial markets become less volatile.Previous guarantees on deposits arranged jointly by the Bank of England, the U.K. Treasury and Financial Services Authority have been extended to customers who deposited money after Sept. 19, the Newcastle, England-based bank said in a statement today. That's it. I go short Sterling as much as I legally can. Quote Link to comment Share on other sites More sharing options...
Far Out Bear Posted October 9, 2007 Share Posted October 9, 2007 http://www.bloomberg.com/apps/news?pid=206...&refer=homeThat's it. I go short Sterling as much as I legally can. why let a simple thing like the law get in the way eh? i'm sure none of these paper pushing crooks do. Quote Link to comment Share on other sites More sharing options...
Timil Posted October 9, 2007 Share Posted October 9, 2007 In a world of uncertainty its good to know there is something you can rely on. The incompetence of this Government. Quote Link to comment Share on other sites More sharing options...
The Ayatollah Buggeri Posted October 9, 2007 Share Posted October 9, 2007 They've also now probably shot themselves in the foot as far as finding a buyer for NR is concerned. Anyone interested in buying won't take long to conclude if that Darling feels the need to guarantee a 100% bailout, NR could not stay afloat otherwise. Quote Link to comment Share on other sites More sharing options...
Moo Posted October 9, 2007 Share Posted October 9, 2007 Last Trade: 210.00 p Trade Time: 9:49AM Change: 37.50 (21.74%) Prev Close: 172.50 Open: 178.00 Bid: 209.00 Ask: 209.75 1y Target Est: 440.36p The dead cat's been on the Viagra? Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted October 9, 2007 Share Posted October 9, 2007 Last Trade: 210.00 p Trade Time: 9:49AM Change: 37.50 (21.74%) Prev Close: 172.50 Open: 178.00 Bid: 209.00 Ask: 209.75 1y Target Est: 440.36p The dead cat's been on the Viagra? Cialis. Far too long a duration of action and far to many rebounds to be viagra. Quote Link to comment Share on other sites More sharing options...
othello Posted October 9, 2007 Share Posted October 9, 2007 http://www.bloomberg.com/apps/news?pid=206...&refer=homeThat's it. I go short Sterling as much as I legally can. Better put my money into NR then. Quote Link to comment Share on other sites More sharing options...
R K Posted October 9, 2007 Share Posted October 9, 2007 What has caused Darling to extend this guarantee to new depositors all of a sudden? Is he expecting something to happen which, if it were not extended, would cause new depositors (I'm amazed there have been any) to want their cash out? He is manipulating the share price upwards using taxpayer guarantees for some reason. Very suspect imo. Quote Link to comment Share on other sites More sharing options...
Moo Posted October 9, 2007 Share Posted October 9, 2007 Would love to know who's buying NR at the moment. The guarantee seems to me a like a prelude to packing it in, or an imminent breakup with the loan book sold on, and the rest of it dismantled. After all, Drongo doesn't need to keep it going until after an Autumn election now. Quote Link to comment Share on other sites More sharing options...
EmpiricalBear Posted October 9, 2007 Share Posted October 9, 2007 Yep, I think it was NR, or another bank going belly up that was the real reason for cancelling the snap election... The poll results were a real gift in giving Brown an 'out' that excuses him from what is to come. He could honestly say that he wasn't scared of facing Cameron in a snap election while crossing his fingers behind his back that no journalist asked whether the continuing financial crisis might be the real reason he was 'bottling' it. These people are so teflon coated it amazes me. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted October 9, 2007 Share Posted October 9, 2007 (edited) I read that NR are paying 50 million for the privilege. Seems like a small price. I reckon all the other dodgy banks would happily pay 50 million to insure their 40bn (insert correct figure here) deposits. :angry: Edit: didgy should be dodgy Edited October 9, 2007 by bobthe~ Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted October 9, 2007 Author Share Posted October 9, 2007 I would love to see NR hiking rates to attract more deposits now that they're 100% insured. The ultimate thing would be all other banks getting a run since NR would then offer the highest 100% guaranteed IR in the UK. Quote Link to comment Share on other sites More sharing options...
Injin Posted October 9, 2007 Share Posted October 9, 2007 What has caused Darling to extend this guarantee to new depositors all of a sudden?Is he expecting something to happen which, if it were not extended, would cause new depositors (I'm amazed there have been any) to want their cash out? He is manipulating the share price upwards using taxpayer guarantees for some reason. Very suspect imo. I'd give dollars to doughnuts that the BoE is giving hand outs to the other high street banks via NR. Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted October 9, 2007 Share Posted October 9, 2007 They've also now probably shot themselves in the foot as far as finding a buyer for NR is concerned. Anyone interested in buying won't take long to conclude if that Darling feels the need to guarantee a 100% bailout, NR could not stay afloat otherwise. havent they just had a rumour of a backing offer from america's city bank for 20 billion ? Quote Link to comment Share on other sites More sharing options...
dpg50000 Posted October 9, 2007 Share Posted October 9, 2007 Wonder how much of a bank run there will be on HBOS after people read this: http://money.uk.msn.com/investing/articles...umentid=6351303 Quote Link to comment Share on other sites More sharing options...
neilrich Posted October 9, 2007 Share Posted October 9, 2007 government will now guarantee all customer deposits until financial markets become less volatile Clear cut then...who decides when the markets become less volatile, will they give me suffienct warning so I can then withdraw my funds from the Northern Rock...ideally I'd like seven days notice! How many more U-turns? Clutching at straws or what? Quote Link to comment Share on other sites More sharing options...
meow Posted October 9, 2007 Share Posted October 9, 2007 Isn't citi bank the one with the 60% profit warning? A stuffed bank buys a more stuffed bank? Quote Link to comment Share on other sites More sharing options...
meow Posted October 9, 2007 Share Posted October 9, 2007 Wonder how much of a bank run there will be on HBOS after people read this:http://money.uk.msn.com/investing/articles...umentid=6351303 The FSA has for years allowed banks and other financial institutions to amalgamate their various subsidiaries for the purposes of the compensation scheme. In the case of HBOS, for example, the public company that owns Halifax, Bank of Scotland, Birmingham Midshires and underwrites the AA's savings products, this means that there is only one compensation scheme limit per saver with all those companies.In other words, if you had £35,000 in an account with each of the above banks and building societies (some £140,000) you will only have £35,000 guaranteed 100%. Yet the FSA does not even require companies to make it clear they are part of a larger group for compensation purposes. And it hasn't made this restriction on compensation clear to savers Bloody hell, this should be repeatedly shouted from every tree top in the land! Quote Link to comment Share on other sites More sharing options...
Far Out Bear Posted October 9, 2007 Share Posted October 9, 2007 Bloody hell, this should be repeatedly shouted from every tree top in the land! Jeezus fin h chirst on a bike. The tone on here is that the government isn't doing enough? HAVE YOU PEOPLE NO IDEA what is going to happen to the value of sterling when the government finally has to 'make good' on all these outrageous promises? Quote Link to comment Share on other sites More sharing options...
tune2001 Posted October 9, 2007 Share Posted October 9, 2007 If the govt guarantees the value of the money in NR, essentially making risk-free deposits, wouldn't the value of sterling rise as the world and his wife ploughed their money into it? ....Or am I missing something subtle? Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted October 9, 2007 Author Share Posted October 9, 2007 HAVE YOU PEOPLE NO IDEA what is going to happen to the value of sterling when the government finally has to 'make good' on all these outrageous promises? Yes. It will be ADIOS MUCHACHOS time for Sterling. Quote Link to comment Share on other sites More sharing options...
godless Posted October 9, 2007 Share Posted October 9, 2007 Am I surprised, am I f*ck :angry: :angry: :angry: Quote Link to comment Share on other sites More sharing options...
Realistbear Posted October 9, 2007 Share Posted October 9, 2007 http://www.bloomberg.com/apps/news?pid=206...&refer=homeThat's it. I go short Sterling as much as I legally can. Sterling is down about 200 pips in 24 hours: GBPUSD=X 1 9 Oct 2.0278 2.0278 Good move--the miracle is unwinding, the world knows it and its just a matter of time before the currency reflects it. Quote Link to comment Share on other sites More sharing options...
Pluto Posted October 9, 2007 Share Posted October 9, 2007 Jeezus fin h chirst on a bike. The tone on here is that the government isn't doing enough?HAVE YOU PEOPLE NO IDEA what is going to happen to the value of sterling when the government finally has to 'make good' on all these outrageous promises? You will be on your knees begging for Sterling to be replaced by the Euro. The elected officials will be hailed as saviours for making the switch to "protect" british citizens from the nasty Forex speculators. Mission accomplished. Quote Link to comment Share on other sites More sharing options...
hp9man Posted October 9, 2007 Share Posted October 9, 2007 Interesting anecdote to add to the mixing pot - my mother in law was talking to someone on the phone at Northern Rock HQ. She asked how many people who had taken their money out had reinvested in NR (you can get these questions under the radar when you're 84). The answer was only a quarter. Perhaps this is a factor in the decision to extend the 100% guarantee to new investments - the previous guarantee didn't bring back enough cash? Quote Link to comment Share on other sites More sharing options...
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