northern rock banks

beechy · 14-09-2007, 05:15

its nice to know that the bank of england
is to lend northern rock money to help them
through a rough patch ..short term cash flow problem
when i went to my bank no names ..on st james st
for a business loan to expand i was refused
reason... didnt want to borrow enough..
still i survived so im sure northen rock will

WillowTheWhisp · 14-09-2007, 07:34

It's a bit worrying when banks or building societies are struggling to raise cash.

SPUGGIE J · 14-09-2007, 14:10

Quote:

Originally Posted by beechy

its nice to know that the bank of england
is to lend northern rock money to help them
through a rough patch ..short term cash flow problem
when i went to my bank no names ..on st james st
for a business loan to expand i was refused
reason... didnt want to borrow enough..
still i survived so im sure northen rock will

The best thing is that if you borrowed more than you needed at their behest and struggled with repayments they would have made your life a misery. Now maybe banks and building societies will realise money dosnt grow on trees.

entwisi · 14-09-2007, 18:17

The issue with Northern Rock as I understand it is down to their business mix. They are a heavy investor in mortgages, far greater percentage of their business is in this arena. They also (as all other banks do) play teh international markets buying and selling investments,debts, etc.

With teh advent of the american sub prime mortage scandal ( think lending shed loads of money to poor people then selling teh debts on as something else to other banks ) their cash flow isn't too heathly AT THIS MOMENT. as the sub prime stuff settles as it will their position will be back on track with just lower profits and a bit of hurt pride. What is more scary is that this was reported. this has now casued a situation where people who have savings with NR are all panicking and withdrawing their capital. Now it doesn't take a brain surgeon to realsie that NR (agaian as with all other Banks) cannot liquidate all capital investments back to investors in such a short period of time. The very action of people withdrawing their money could caused teh Bank to trade beyond its means. This would happen to every single bank across the world so its not NR's fault or being they are just falling victim once again of American financial mistradings.

jambutty · 14-09-2007, 19:57

I always KNEW there was an advantage to not having much money in a bank.

My only problem with cash flow is how to slow it down.

The government giveth and the government taketh away. The trick is to grab some for yourself between the giving and taking.

entwisi · 14-09-2007, 20:03

one advantage that happens probably once in a lifetime against all teh benefitsthat a Bank account offers

I'll stick to using Banks thanks!

I agree with that last line though!!!!