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Possibly. Most overdrafts are "Repable on Demand". ie. in full.

If a UK high street bank started to withdraw or severely reduce overdraft facilities for retail customers, guess what would happen...

For a clue, look at what happened to Northern Rock when the savers got wind of the BoE emergency loan. What they would get back from the overdrafts, they would lose ten-fold from withdrawn savings accounts, etc. that are already in credit.

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If a UK high street bank started to withdraw or severely reduce overdraft facilities for retail customers, guess what would happen...

For a clue, look at what happened to Northern Rock when the savers got wind of the BoE emergency loan. What they would get back from the overdrafts, they would lose ten-fold from withdrawn savings accounts, etc. that are already in credit.

It's not a unilateral decision... it isn't everyone's overdraft all at once. The bank just becomes a lot more aggressive about anyone who doesn't exactly fit their stereotype of what a solvent individual's accounts should look like. The individuals will find it all very unfair, but the rest of the world will think that they've been reckless and are insolvent.

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It's not a unilateral decision... it isn't everyone's overdraft all at once. The bank just becomes a lot more aggressive about anyone who doesn't exactly fit their stereotype of what a solvent individual's accounts should look like. The individuals will find it all very unfair, but the rest of the world will think that they've been reckless and are insolvent.

But that's not what happened with egg is it? Unless they did this soooo slowly it was not easy to detect (i.e. over 6+ months, and then the benefit would be questionable) you are likely to get people writing in to the press, or worse they may pick a journalist's overdraft to cancel! We know which banks have poor reserve ratios and the slightest murmer of problems could be enough to start another bank run.

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So NR is not nationalised, but it is really. It's a solid bank with huge liablilities. The golden rule hasn't been broken if we don't count NR in , because it's a one off.

Have I got this right?

I don't think NR is any more nationalised now than it was last week... the difference is that while we thought that Q1 2008 would see the resolution of the mess... the rules have been changed in order to allow it to continue indefinitely.

Unprecedented is definitely the right word for it... I'm not sure if it deserves the hype and fear - but we are definitely in uncharted territory. The government has admitted defeat - it can't resolve Northern Rock - either by nationalising it, or by pressing for a private sector solution.

This has to kick of questions about the long term management of NR - now they're supported indefinitely by the tax-payer.

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But that's not what happened with egg is it? Unless they did this soooo slowly it was not easy to detect (i.e. over 6+ months, and then the benefit would be questionable) you are likely to get people writing in to the press, or worse they may pick a journalist's overdraft to cancel! We know which banks have poor reserve ratios and the slightest murmer of problems could be enough to start another bank run.

Barclaycard, while it didn't withdraw cards, slashed credit limits last year... The pitch was that it was about the individuals... but that seemed *remarkably* odd - since the people I found whose limits had been cut were the least likely to be a credit risk... though, also, pretty unlikely to depend upon pressing their borrowing to anywhere near their credit limit.

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Barclaycard, while it didn't withdraw cards, slashed credit limits last year... The pitch was that it was about the individuals... but that seemed *remarkably* odd - since the people I found whose limits had been cut were the least likely to be a credit risk... though, also, pretty unlikely to depend upon pressing their borrowing to anywhere near their credit limit.

Well, as it happens I have a Barclaycard and have never used more than 50% of the available limit for more than a month or so at a time. They raised my limit by £2,500 in August! I don't think what Barclays or Egg are doing is anything to do with a credit crunch. It's more to do with pruning your unprofitable customers and those with an unpredictable credit history.

I can't see a UK bank being so desperate for liquidity it can get enough money to help by trimming overdrafts. Most people borrow more substantial sums via personal loans anyway, and they can't call them in any faster than the term of the loan allows. I mean, really, would you risk a bank run to get a handful of cash? Far, far easier to pitch up to the ECB and ask for a 10-20 billion Euros and very few people need ever know.

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Well, as it happens I have a Barclaycard and have never used more than 50% of the available limit for more than a month or so at a time. They raised my limit by £2,500 in August! I don't think what Barclays or Egg are doing is anything to do with a credit crunch. It's more to do with pruning your unprofitable customers and those with an unpredictable credit history.

I can't see a UK bank being so desperate for liquidity it can get enough money to help by trimming overdrafts. Most people borrow more substantial sums via personal loans anyway, and they can't call them in any faster than the term of the loan allows. I mean, really, would you risk a bank run to get a handful of cash? Far, far easier to pitch up to the ECB and ask for a 10-20 billion Euros and very few people need ever know.

Oh, yes - I think Barclaycard were pruning its unprofitable customers too. One has to wonder, however, why they thought this was a good idea. Low return - fine - but spectacularly low risk too.

The problem isn't about liquidity - it is about solvency, insurance and profitability.

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I thought that CGNAO had gone quiet because of the response to his last post. It would be understandable. However, he appears to logged off immediately after he posted the 'alert'. Unless he uses an alias or logged in as a guest, he wouldn't have seen the pages and pages that followed.

I would have thought vanity, if nothing else, would draw most people back for a quick peek at responses to a thread that they had started.

What has become of him (or her)?

p-o-p

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I thought that CGNAO had gone quiet because of the response to his last post. It would be understandable. However, he appears to logged off immediately after he posted the 'alert'. Unless he uses an alias or logged in as a guest, he wouldn't have seen the pages and pages that followed.

I would have thought vanity, if nothing else, would draw most people back for a quick peek at responses to a thread that they had started.

What has become of him (or her)?

p-o-p

Its very easy to lurk as a guest. I do it all the time. Im sure cgnao is watching repsonses.

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Its very easy to lurk as a guest. I do it all the time. Im sure cgnao is watching repsonses.

his profile says:

Last Seen: 5th February 2008 - 09:01 PM

Local Time: Feb 7 2008, 02:21 PM

so he has indeed logged in again but failed to add anything to his initial nonsensical post. What a prat.

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Why?

p-o-p

Nothing sinister. I work for a very large organisation with draconian fire walls. Every now and then my cookies get wiped and i can't be ar$ed to log in every time.

Meanwhile has anyone else noticed that the ftse is having a dog of a day....

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Nothing sinister. I work for a very large organisation with draconian fire walls. Every now and then my cookies get wiped and i can't be ar$ed to log in every time.

Meanwhile has anyone else noticed that the ftse is having a dog of a day....

Miss Footsie is sulking because she didn't get the drop she wanted this morning. If Mr Jones wakes up and has a sudden rise I'm sure she will cheer up. If Mr Jones shows a droop, she will sulk and be petulant all day.

p-o-p

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This sounds like techie arrogance to me, there's definitely a type like that and I've worked with a number of them. The more low-level they get the more they are like it too. Generally speaking, of course.

I would also say that of the techies I've worked with the ones with more rounded skillset (e.g. some business and/or interpersonal skills too) have been less like this.

(I am also a techie)

I agree!

fwiw, I class myself as a decent 'all-rounder', I know when to fix & when to ask for help.....

I moved into management a few years ago BUT always kept a strong technical bias.

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I thought that CGNAO had gone quiet because of the response to his last post. It would be understandable. However, he appears to logged off immediately after he posted the 'alert'. Unless he uses an alias or logged in as a guest, he wouldn't have seen the pages and pages that followed.

I would have thought vanity, if nothing else, would draw most people back for a quick peek at responses to a thread that they had started.

What has become of him (or her)?

p-o-p

I can imagine three possible reasons for his disappearance:

1) His post was rubbish and, given the response to it, he's too ashamed to show his face on HPC until the fuss dies down; or

2) He does actually know something but is regretting letting it out of the bag. Perhaps it's supposed to be kept under wraps and he has either had, or fears having, his knuckles rapped for being indiscrete; or

3) He is physically unable to post. Perhaps he's had an accident.

I hope that it's not the latter.

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