Northern rock

seriously mate, it doesnt, obviousely 2 billion is alot money to be taken from the business, but this is small compared to what the buiness has overall, what i was focusing on was that NR could still operate as usual.

the main point people really dont seem to realise is that what is going on with the mortgage side doesn not and is not affecting people's savings, trust me mate, i work at NR ad this is straight from the head honchos mouth.

remember the head honcho of Enron? he said the same. The head of Northern Rock won't be in the job in 6months time. And fortunately (for once) he on't be able to cash his share options in and make millions cos they'll be worth less. (or worthless)

the sub-prime situation has got very little to do with the overall state of affairs. THey haven't sold enough high risk mortgages to make this big a difference. you literally don't know what you're talking about.

Northern rock is trouble because of the current state of the market and because their business model relies heavily on lending from other banks that isn't happening at the moment because of the credit crunch.

You obviously didn't read my comment properly at all. I had said that cameron has done his usual bandwagon jumping and kick them when their down attitude to try and have a dig at labour which will just add to the panic.

the 2billion is just over 5% which is less than the expected loss would be. I think if they continue to lose money at this rate, it will spell trouble but only time will tell

If owt does happen it serves the cunts right for putting me through a 3hr test and then interview and then stating they never had any part time jobs when the application form and CV attached stated it was for Part Time only.

Cunts.

When I worked there I was told the savings department was a very small percentage and it was all geared towards mortgages.

someone understands the situation.

who 'deregulated' the money markets then? and this government has just carried out the same 'business friendly' policies cos it is basically a tory government with the name Labour stuck to it.

It will be a shame if Northern Rock do go down cos it's one of the very few big companies left which is based in the north east. And the Northern Rock Foundation has spent millions on good causes in the north east. We are all a bit poorer here if it goes down. Basically the management got greedy and risked the business on a gamble that they would be able to borrow from the banks cheap and lend it out to homebuyers cheap. they were wrong.

Don't get me wrong, if i personally had any savings, I would be taking them out too, i just think that the panic is making a bad situation worse.

From what I was reading this afternoon though, if you look at the current government's debt and borrowing, it was a lot worse when cameron was the advisor for treasury.

I understand savings is not the main part of their business.

But there will be no consumer confidence for some time and they will be struggle to attract new customers. People will not touch them with a barge poll, regardless of them knowing the full facts or not.

totally agree with you there buddy, spot on, confidence in the company is going to be hard to regain. we will probably see a big hike in savings interest rates to temp customers back, whether that works or not is a different story.

Who said the problems are down to cameron & co?

Nope, as i said, just what i was reading - came form the bbc website i think - http://news.bbc.co.uk/1/hi/uk_politics/6997214.stm

I told you it would happen I don't understand why they are still lending people 125% pf the property price the way the market has slowed down so much.

About a couple of months ago HSBC made the max you could borrow 90% or 95% for Grads and were the first to do so. If you look around now, a lot of lenders are also doing the same and are already making it harder for people to borrow money.

I think this is going to be the main problem going forwards, the fact that everyone withdrew their money through not knowing the full fact of the matter goes to show that it doesn't take much for people to overreact and I think NR will struggle massively to maintain the reputation.

If their assets are just sold off to different companies, all of the jobs will go so if it was a choice between that and being bought out, NR would be better off getting taken over, problem is, their brand is worthless now so it's becoming less likely that it would happen

125% is not the secured loan though - NR still only lend 95% fixed on the property - really, the dodgy mortgages are the sub-prime ones that go to high risk customers at higher rates.

I know only 95% and sometimes 90% is secured on the property, but how many people who have a Together mortgage would be able to pay back the unsecured bit unless they make money on their property?

Unless they make a lot of money on their property which is unlikely at the minute without making a large investment in it and doing it up, then when they sell they are still going to have to find the difference in order to wipe of the loan, which no doubt will mean to getting a further personal loan at which point it will be at a higher interest rate.