Bank of England Bailing out another bank, BOYS Looking after the BOYS I think. If Northern Rock can't look after it's own purse, then they should sink just like any family is forced to do when they cant afford to look after their mortgage repayments, they are told not to overspend, tighten their pursestrings, go without, & even after doing that, & they still can't afford to pay their mortgage, the BANKS take their HOME away from them leaving them high & dry, families with children, because of the general cost of living, not because they are ripping families off with high interest rates, grabbing as much, & more money back than is fair, like Norther Rock & everyother bank on the high streets Now they even want to charge for every Direct Debit transaction, imagine how much that will rake in, without even having to work for it, instant charging per transaction, talking of 65p at the moment, but give poor old joe public a rise in their paypackets, NO WAY !
2007-09-14 09:29:23 · 6 answers · asked by jerbal 1 in Business & Finance ➔ Personal Finance
If people want their money back, NR ether has to find Cash from BOE or IT HAS TO CALL IN THE MORTGAGES ..
What do you think is best for 'Joe Public' ?
2007-09-17 01:07:17 · answer #1 · answered by Steve B 7 · 0⤊ 0⤋
Banks do this all the time, they aren't in trouble, they just have to balance their accounts at the end of the trading day.
Usually they borrow from other high street banks, but if they can't they can request the money from the bank of England.
There was a scare story about it the other day with Barclays.
But I agree, it seems a bit unfair they can borrow money with very low interest while charging us through the nose....but money goes to money :o(
2007-09-14 09:39:15 · answer #2 · answered by Al 4 · 1⤊ 0⤋
You misunderstand the situation. Banks borrow off other banks ALL THE TIME. They lend long (mortgages), borrow short (off other banks). Thanks to the Americans screwing up, there is a squeeze on banks borrowing off other banks and the rates are very high. So the B of E is there to help out, in what is only a temporary cash flow problem. Northern Rock has 120 BILLION quid in assets. It is not insolvent and nor will it be. No-one will lose their money.
2007-09-14 09:38:09 · answer #3 · answered by Anonymous · 7⤊ 0⤋
The problem is if they do sink then the customers will loose out, the ones with savings and mortgages, so better for the economy for The Bank to lend the money in the long run.
2007-09-14 09:41:09 · answer #4 · answered by Finance Expert 3 · 0⤊ 1⤋
I have my mortgage with Northern Rock it is really worrying - we couldn't get a mortgage from anybody else, so I don't know what would happen to us if they went bust! You are right, if we lost our jobs they would fine us for missing payments, but when the shoe is on the other foot we have to bail them out!!
2007-09-14 09:37:01 · answer #5 · answered by curlyk8 3 · 0⤊ 4⤋
You obviously don't understand the situation otherwise you might have had a question.
2007-09-14 09:45:41 · answer #6 · answered by Nosey parker 5 · 2⤊ 0⤋