Not a level plyaying field, Northern Rock.
 

Northern Rock
Figures from the Bank of England show that it has lent Northern Rock almost £23 billion pounds in emergency funding since the global credit crunch. The figure equates to about £730 for every UK taxpayer. Is it now time to nationalise the bank or just put it out of its misery? Considering it is illegal to 'prop' these secondary banks up for any length of time. The fact that Northern Rock is only paying 1% over average base rate this is making it an unfair playing field for other mortgage lenders, who have to raise funds through the sale of shares or borrowing of other sources at a higher rate of interest, Therefore making the shares of other mortgage lenders less attractive :confused:

Re: Not a level plyaying field, Northern Rock.
 

If you recall at the time of the run on the Northern Rock, financial shares were hit across the board. At the time, the next largest loser in share value to NR was the Alliance and Leicester. Now, I have not looked at their balance sheet but I have noticed their advertisements over the last few days where they are offering a whopping 12% on deposits over one year. This is 6% over LIBOR and Base and appears to be a full 4% over 'owt the competition is giving.

Well, if something appears to be too good to be true, then it probably is. Some of you may well remember the BCCI scandal of the early '90s, when the Bank of England shut down a pretty dodgy outfit. Their rate differential over the market was only 2%, if I recall, so we may well see something interesting over the next few weeks.

Re: Not a level plyaying field, Northern Rock.
 

You can borrow money for less than 12%. I wonder how many people will take out a loan, whack it in there and pay off the load next year with a little profit as well?

Re: Not a level plyaying field, Northern Rock.
 

Each British taxpayer has essentially had to stump up 730 pounds a head- through Bank of England loans - to keep this business going. On top ofthat, the treasury has also indemnified a further 20 billion pounds ofdeposits. The burden of responsibility this places on the chancellor ishuge. Is it a price worth paying if it saves the system from collapse?For how long can it realistically continue? What are the alternativesfor the Bank of England and the Chancellor? They did nothing for the hamper people last year one rule for one another for the haves. What if at the end of the day it goes belly up, what then, they can't keep chucking money at it if people won't invest in it.

Re: Not a level plyaying field, Northern Rock.
 

I haven't had my bill for it yet. I thought the loan would be paid back so won't cost anyone anything.

Re: Not a level plyaying field, Northern Rock.
 

What could the money be earning now? or doing instead of getting peanuts interest if all goes well, and there is no guarantee of that happening. INMO the directors who got this company into this mess should be jailed, there as bad as the Bank of Credit and Commerce, no government help here? Why?

Re: Not a level plyaying field, Northern Rock.
 

The savings account from Alliance and Leicester paying 12% is only available to anyone who has a Premier Current Account with them ( which is funded with at least £500 permonth). Depositsd can only be paid into the 12% savings account, by transferring a regular monthly amount of between £10.00 and £250 each month for 12 months. the rate is only guarenteed for 12 months.

Re: Not a level plyaying field, Northern Rock.
 

What is the monthly fee of £10.00 all about surely not the cost or 'servicing' the account?

Re: Not a level plyaying field, Northern Rock.
 

No the £10.00 is the minimum monthly deosit into the high rate savings account. From reading the A&L website it appears that it is sales technique for attracting new customers to open a current account with them.

Re: Not a level plyaying field, Northern Rock.
 

I presonally do not like 'short' investments 12 months is only a short time how are the A&L going to use the money they cant really lend it 'long' unless they are seeing how much they can attract and then extend the period. All very dodgy if you ask me.

Re: Not a level plyaying field, Northern Rock.
 

all banks are dodgy legalized extortion probably something in the small print banks dont give away money unless they get a big return if anything goes wrong:rolleyes: