I heard a rumour Northern Rock could go bust over the sub prime problems in America?

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I heard a rumour Northern Rock could go bust over the sub prime problems in America?

What will this mean for my savings and morgage with this company?

2007-09-05 22:15:22 · 2 answers · asked by Anonymous in Business & Finance ➔ Corporations

2 answers

Savings are guaranteed by Government (up to £30,000 I believe). Your Mortgage will still have to be paid (if NR go bust your Mortgage wil be taken over by another Building Society or Bank).

Rumours and rumours ... the entire Banking sector is full of it .. no one knows where the liability for sub-prime is actually located so everyone has the 'jitters' .. in my view this means there are some quality bargains to be had ...

2007-09-09 20:42:33 · answer #1 · answered by Steve B 7 · 0⤊ 0⤋

It's an unfounded rumour. It's Barclays Bank that had to borrow heavily from the BoE and not NR.

2007-09-06 05:26:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋