now the northern rock has asked the bank of england for dosh is the bank safe or sholuid a nother bank take it over to keep the safe running of it...... will the nr last
2007-09-18 00:29:35 · 2 answers · asked by Anonymous in Local Businesses ➔ United Kingdom ➔ London
The money has always been safe. The problem is, that as more people panic and take their money out the NR has less available cash to pay them out. It then has to borrow from other banks at a high rate of interest and will then start to get into trouble.
2007-09-18 08:57:41 · answer #1 · answered by Philip W 7 · 1⤊ 0⤋
You are showing your ignorance. Northern Rock is solvent - it just had difficulty borrowing money from the money markets where it normally got it's money from. It had £30 billion on it's books before the run on it - and probably still has a huge amount. All that has happened is that it has now become a cheap takeover target for another institution. You may never see the headline grabbing deals the NR offered ever again should that happen! Otherwise your money is safe.
2007-09-21 03:58:43 · answer #2 · answered by CountTheDays 6 · 0⤊ 0⤋