Your savings are guaranteed Darling!

  Pine Man 19:27 17 Sep 2007
Locked

So Darling is now guaranteeing all of the NR savers deposits!

Good news for the savers and a good move for Darling.

The more you think about it you can't help admiring the man can you? If he was telling the truth (sticks in the throat a bit) and there really was no risk to savers at NR then his offer, on behalf of the government, to guarantee all of the depositors savings is a load of hot air because as there is no risk they (the government) will never have to pay!

Or am I too cynical?

  Riojaa 19:52 17 Sep 2007

If I had money invested in the Northern Rock then I would sit back now and enjoy a nice fresh cup of Darjeeling.

Milk or sharp lemon?

  Forum Editor 20:42 17 Sep 2007

I always smile inwardly when people talk thus about the government - as if it's some kind of extra-terrestrial entity, rather than what it really is - a group of people elected by us to govern in our name, and spend our money.

The government (us) is underwriting the Northern Rock bank because it knows wehat lots of other people know:

1. It's a viable, profitable business.

2. Something has happened which is quite unprecedented, and which could have happened to any one of a handful of other banks (and still might).

3. The very last thing this country needs is the spectacular failure of a high street bank.

It's not a question of 'if' there was no risk to Northern Rock customers - there is no risk. If every customer asked for every penny in every account it would be paid.

  DrScott 22:37 17 Sep 2007

wish the government had made such promises earlier!

Whether this leads to calm will reflect the public's faith in this government... interesting times...

  spuds 23:24 17 Sep 2007

Going on the past performance regarding backtracking on pensions, I do not think many people have much faith with government statements (Isn't there a general election on the cards shortly!).

DrScott.
Our local evening newspaper were interviewing people queueing outside the local Northern Rock branch this morning. A local GP was even in the queue drawing out a six figure amount :O)

  Stuartli 00:10 18 Sep 2007

There have been some observations about the Alliance and Leicester over the past few hours.

I've quite a large sum invested with Northern Rock.

It's still there and will be for some considerable time to come unless I'm completely convinced otherwise.

  WhiteTruckMan 00:52 18 Sep 2007

"A local GP was even in the queue drawing out a six figure amount "

Thats not panicking-he's just drawing his wages out! :)

WTM

  Quickbeam 01:04 18 Sep 2007

.

  pavvi 01:11 18 Sep 2007

my personal opinion is that the amount that the bank of england was allowing (it hasn't been disclosed) would have at least covered the amount of money deposited, hence keeping NR solvent.

  Snec 03:46 18 Sep 2007

The UK's economy is built on debt. I know a young couple who recently got a 125% mortgage with NR. This means should they default on payments NR has no chance of recovering the money lent. I know other mortgage lenders do it as well but it surely can't be a sound business model. Despite what the Government, or anyone else, may say, there is financial trouble ahead, the bubble is ready to burst and the truth about the UK's economy will soon be evident to all and will cause distress to a great many.

  Chegs ®™ 07:59 18 Sep 2007

I was interested to hear a reporter asking people queuing outside NR their views,and even with assurances from an independent financial advisor that their savings/cash was safe almost as one they said the government "might" be lying and they weren't prepared to chance it.This is the self same government they elected yet nobody trusts them.

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