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Anyone here a customer and drawn their money out?
but people queuing to get all their money out - pretty stupid?
People don't like the idea of losing all their money.
Don't forget BCCI...
I don't really understand any of it.
If people all demand their money at the same time then Northern Rock have to liquidate assets they are using to make more money for themselves and for their customers as interest.
This means stuff being sold on the stock exchange which will lower its value and thus it all falls to pieces.
Northern Rock had a small, probably easily resolvable, cash flow problem last week.
There were predictions of doom and gloom but they probably weren't realistic until everyone panicked and withdrew their money, which probably will put Northern Rock in trouble. This may have a knock-on effect on people Northern Rock owes money to including other companies.
Potentially they could run into financial trouble too and then there's a domino effect from there.
I were a Northern Rock customer, the only thing that would make me want to withdraw my money is the fact that so many customers have withdrawn their savings, well over the £1 billion mark now apparently. I think the company itself is (was?) perfectly solvent, but the initial overreaction by those that withdrew all of their cash and those that continue to do so means that they may well now find themselves in trouble
it's like the petrol panic-buying, which cause petrol shortages when there is actually plenty to go round.
Plus - 35,000 quid of savings are automatically insured - this many people don't have more than that in savings do they??
2,000 is auto insured anything above that to 35 grand you can get up to 90% back. Anything over 35 is not insured, and is at risk, which is why the large savers are withdrawing all their money.
^^ Northern Rock
cumm back t 'eckmondwike, I tell thee.
to swap for my shares in Enron?
You should phone them up and ask if you can double it and see what they say *s*
thought this through . . . .
But the first part I meant. I haven't thought it through, but are you not in a position where Northern Rock have paid you out lots of money and you owe it back to them in little bits.
Or are you still to draw down under it. In which, case, more worrying...
there are big banners up all round Newcastle Central Station with pictures of the Newcastle Falcons and Eagles, both of whom are sponsored by Northern Rock. The caption reads: "Northern Rock. Playtime is over." :D
Just how many people havent heard of internet banking?!
their website has crashed due to the ridiculous panic and I genuinely really need to get some money out of my savings. I can't access my money any other way but online - great timing.
there are a fair number of a/cs open with Northern Rock, which are 'postal banking' only. Kinda antiquated.
People withdrawing non-normal deposits, when the bank is currently covered by a BoE guarantee, thus making the deposits safer than any other UK bank, seems illogical
I wanted to call the people queuing on Saturday morons, but then I was about to go and spend money that wasn't mine on things I couldn;t afford and didn't need, so who am I to advise?
it has a huge article about the demise and next to it is a big advert for the new Northern Rock fixed rate doohickey that they'd obviously paid for in advance. Try it today!