allstargyp

I used to think they were a record shop. fact.

rohan

As Mervyn King said in his press release, the B of E wouldn't have agreed to lend the last resort if Northern Rock were in dire financial trouble and were likely to go bust. Thus, it's very unlikely that such an event will occur.

merry_miller

By the sound of things just reading on MSE & the news people are queuing down the street to take their money out of the Northern Rock accounts.

Surely if that's the case it will become a self fulfilling prophecy as everyone rushes to take their money out they'll go under.

Fat Bhoy Tim

whs. Surprised to see them in this situation, be interested to know what run of bad loans contributed to this. General problems, or a few major **** ups.

Fat Bhoy Tim

Figures there'd be a run

Powlay

IS this good or bad for people who have invested money in banks own schemes (ie TSB - scottish widows investment)

Bouncerboy13

whs. Surprised to see them in this situation, be interested to know what run of bad loans contributed to this. General problems, or a few major **** ups. </BLOCKQUOTE>

Their increased exposure in the sub prime market

Neil Purvis

Have to pass NR soon as I'll be going out for lunch. Might have a look to see if there are masses of people at the counters.

Fat Bhoy Tim

whs. Surprised to see them in this situation, be interested to know what run of bad loans contributed to this. General problems, or a few major **** ups. </BLOCKQUOTE>

Their increased exposure in the sub prime market </BLOCKQUOTE>

Not too surprising with the housing boom the last few years.

bell

The problem they have ATM is that other high street banks are reluctant to lend to each other due to rocky currency markets.

Therefore everyone keeps having to use the BoE as a lender of last resort.

Barclays had to get a 150m loan just recently from the BoE

I also love the current logic that people are struggling to pay back expensive sub-prime mortgages so as a resuly mortgages may need to become more expensive

...erm hang on, how about being more cautious with who you lend it to. Bloody banks are already making £bn's of profit ffs