Sunday, September 9, 2007
Three cheers for the Credit Crunch!
A pressing need by some banks and building societies to raise cash is fuelling fierce competition in the savings market. Turmoil in the wholesale lending market has increased the cost of financing for lenders making it increasingly economic for them to chase deposits from individual savers. Ron Stout, of Northern Rock, said: “We are pitching our funds at a good, competitive price and we are continuing to raise money.” However, there are warnings that what is good news for savers will probably lead to greater costs for borrowers. LOL!!! :)