Failing Bank in England

Post by **faceless** » Mon Sep 17, 2007 5:02 pm

[web]https://newsvote.bbc.co.uk/1/hi/business/6997765.stm[/web]

I'm not sure if this story is news anywhere outside the UK, but the quote 'As a staff member of Northern Rock I would just like to say that there is no need to panic - the Bank of England and all other authorities back Northern Rock 110%' got me wondering... 110%? No wonder they're fecked .

This is apprently the first time in 70+ years that there's been a run on a bank in Britain.

Mandy · Post by **Mandy** » Mon Sep 17, 2007 5:53 pm

Story is being mentioned elsewhere, e.g. https://whatreallyhappened.com/

If the BofE is now guaranteeing 100% of depositors, then the Bank should just admit it owns the bank .. i.e. take it over, and use it to
offer inexpensive mortgages and good savings rates to customers. Transforming the Northern Rock to a national savings / mortgage bank.

It would certainly force other banks to offer services which does NOT generate billions in excess profit for them. Welcome to the free market (when the government really wants to offer something special .. which this government does NOT)

[web]https://news.bbc.co.uk/go/rss/-/1/hi/bus ... 999615.stm[/web]

Mandy · Post by **Mandy** » Mon Sep 17, 2007 11:31 pm

It's making headlines in the US as well :

[web]https://www.cfnews13.com/News/Business/2 ... k_run.html[/web]

Post by **faceless** » Mon Sep 17, 2007 11:44 pm

I saw on the news earlier that the Alliance and Leicester building society had lost over 30% of its value too. The least in that report were HBOS at around 5% of total value lost, which is still a huge amount.

Mandy · Post by **Mandy** » Mon Sep 17, 2007 11:47 pm

If I had money in a former building society which converted to a bank, I would be concerned. The act of conversion was effectively the looting of the assets of the bank by the depositors of the time. Chickens coming home to roost ..

luke · Post by **luke** » Tue Sep 18, 2007 12:45 am

Mandy wrote:If I had money in a former building society which converted to a bank, I would be concerned.

like abbey national?!

Mandy · Post by **Mandy** » Tue Sep 18, 2007 10:34 am

If you are of a nervous disposition, better not watch :

https://www.spiderednews.com/DebtandCred ... vid=167372
"Money As Debt -- worth watching in light of the run on the Northern Rock bank"