Alliance & Leicester next after Northern Rock

Get in an orderly queue....

Looks like this is more down to speculators than any actual problems. Unlike Northen Rock, A&L gets most of its monies from savers to lend out - the problem for Northern Rock was it borrowed most of the money it lent out. When banks tightened up on borrowing between themselves it got caught out.

I should point out my sympathy to those who have money tied up in these banks, but on the other hand I am glad that these banks that have ramped up the debt in this economy to the point it's going to hurt everyone are themselves getting bit on the bum. Northern Rock issued stupid mortgages to people who couldn't afford it, and A&L had no loyalty for existing customers by cutting them out of the best deals. They don't care about you, so take your business elsewhere.

It may be different but there are rumours a couple of institutions asked the BOE for help like NR had done but were declined...

The govts idea with Northern Rock is to let company die but save the savers cash - which is right. The main sympathy will rightly be with those who lose their jobs rather than the shareholders. I worry about what will happen if this continues to other banks.

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Leave your money in the Rock, if you read the small print that was of course given verbally, the goverment will protect ALL money deposited prior to this event, but it hasnt said anything about money taken out and re-deposited elsewhere after.

The safest place to store your monglian coca beans would be to leave them well alone, this mass withdrawal is adding to the problems.

So stick with the rock, you have confirmed protection that if the goverment went back on would result in the end of them.
I also heard thismorning the financial expert on This Morning confirming all this and his always right in my opinion.

Actually fuck it, as someone just pointed out on the radio...the goverment may promise you your money, but what will you have to go through to get it???

Get your money out and stick it under the matress!!!

Before the announcement it was perfectly understandable for anyone with over £2k to move money out because you are only protected 90% after this value. This is why a lot of old people were in the queue - since they had life savings tied up there.

Now Darling has reluctantly promised full pay back which is significant, and means people shouldn't need to queue (although as you say it may take time to get your money back if NR did fold). Stock prices are up for NR/A&L/B&B so it looks to have worked.

As someone has said though in another forum:

"What you have to remember is the most people don't get the big picture, to them they see a solid company that has been damaged by a frenzy of silly depositors taking their money out. They don't see it is finally the market culling a very sick business model."

I don't really know owt about how all this works, but I'm assuming my savings are safe enough in the Nationwide...

Haven't heard any bad things about them so I don't think there's anything to worry about there :)

Nationwide isn't a bank, it's a mutual building society owned technically by members, and as far as i know has had nothing to do with funding sub-prime-trailer-trash mortgage debts in the US.

I haven't taken my savings out from Northern Rock. I guess that in part to me, Northern Rock is my local building society since I come from Newcastle. I don't have any money with the Cambridge BS. And it's not because I couldn't be arsed to queue for hours, days, weeks or whatever but because I really don't see the point and it's better to just wait for a few days and see what happens. I'm in total agreement that the Bank of England would not have lent the money out if it was at risk. Now that shares have gone up, apparently 8 out of 10 callers are those wanting to reopen their account.

It reminds me of the panic of fuel crisis and how very much like sheep our society is.

What are 'savings'?

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Darling To Guarantee All Bets On The 3.50 At Lingfield

http://www.thedailymash.co.uk/news/business/darling-to-guarantee-all-b...

Surely with share pricing in banks falling now is the time to buy them up? I am sure this is all planned... : )

"they're what your dad has ready for when you make a major fuckup"

Never a truer word spoken, as my poor wallet can attest.