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Was an article in the news about Northern Rock receiving emergency funding from the Bank of England and shares dropping by 21%.
Having a mortgage and two savings accounts with them, it got me thinking about what would happen if they did go bust (they won’t, but still got me thinking about the future).
Don’t think I’ve ever thoroughly read the terms and conditions, so this might be purely guesswork, but if they were in danger of going under would they be able to:
a) ask for their money back before I’m due to pay off the mortgage
b) sell my mortgage on to another provider (possibly at a higher rate of interest than I’m currently paying)
Also what would happen to my savings accounts? If they get bought out would they be passed to whoever takes over, or is it just tough luck? Could they refuse to release my savings if they were in danger of going bankrupt?
Trying to remember what happened at Barings Bank but can’t recall much about it (despite doing a study on them at the time).
The joys of unfethered capitalism. During the good times they're the most profitable companies around, making huge money for their shareholders and top executives. During the bad they get bailed out by the taxpayer.
Same here. Got a £150,000 mortgate with them and £20k loan, so i'm watching the developments eagerly.
My missus, who works for a financial printers, has just done a job for NR where they are prepearing to sell quite a lot of shares. (that's insider knowledge, can probably get put in jail for that)
When banks go bust 
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