Comments on: Between a rock and a hard place?

By: S.Purewal

S.Purewal — Fri, 14 Sep 2007 15:21:38 +0000

N. rock and other financial institutions should learn a lesson from this fiasco. They have always been taking small saver for a ride. Bank of England as a last resort, does give them a breathing space but for how long. They should mend their ways when lending money,otherwise savers would strike back.

By: Alan Morris

Alan Morris — Fri, 14 Sep 2007 13:15:45 +0000

I am a savings holder with an online account which I cannot access because the website is experiencing “temporary technical difficulties”.

One cannot help but wonder if Northern Rock have put on a block to stop erosion of funds.

It is insulting to refer to technical difficulties without reference to the current crisis.

Bottom line is, with this ostrich like approach to savers, I am now definitely closing my account at the first opportunity.

By: Steve

Steve — Fri, 14 Sep 2007 12:31:51 +0000

I think this claim that there isn’t a problem is laughable. Sure, if everyone pretends that there is no problem, that buys breathing space - and banks may continue to cream profits… but isn’t this simply encouraging customers to underwrite the imprudence of the banking sector as a whole?

It is amusing to note that one century ago there was a similar “run on the banks” (1907) which threatened collapse of the US financial sector… the banks are reported to have survived only after the public pledge of $10m by Rockefeller… though the scare served as an ominous hint at some problems leading to the ensuing great depression. In 1907 real assets were risked to support banking - today, at best, all we have is a ready supply of fiat currency by central banks desperate to head off the collapse of a commercial bank… Is it right that central banks are free to loan arbitrary sums to bail out commercial companies who’ve taken risks that they can’t otherwise cover? Is flooding the market with fiat currency in the public interest, or only in the interest of the shareholders in banks?

The Bank of England is publicly owned… what checks are there to avoid excessive risk being transferred from the commercial bank to the central bank - and, hence, the general public?

By: Chris

Chris — Fri, 14 Sep 2007 11:27:15 +0000

NR should be allowed to fail if markets decide not to extent further credit to it.

I happen to know of the generous (irresponsible)lending to a UK property ‘cowboy’ speculator - so much for lowly rated home buyers.

Look at the books and teach the system a lesson.

By: Ian Cruickshank

Ian Cruickshank — Fri, 14 Sep 2007 09:42:01 +0000

There is no need to panic this is a well ran bank who will weather this and significantly stronger storms. No need to withdraw your hard earned cash !. In fact if people do withdraw on mass then this would caused further problems in the whole banking sector. Sit on your hands and smile !