Re: Bradford and Bingley could well be next

M Holmes wrote:

william.hooper@xxxxxxxxx wrote:

Northern Rock savers have not lost their money and can get it back now
- but in hindsight we now know it was a close shave. A few months ago
their shares were at L12, Friday at L4 and today people are talking
about break up value (fire all the staff, sell the branches, run down
the mortgage book) of L1.80. That's a close shave, certainly not the
kind of risk you want to run on your cash savings account.

I'm tired of people attacking these savers. If the other banks won't
lend to your bank, it's entirely logical to suppose there's a reason for
that distrust.

AIUI it is not the case that other banks "won't lend" to NR, or that they
distrust NR, but rather that NR *won't borrow* from them, because general
interbank borrowing rates have risen so far above BoE base rate that NR
can't afford to borrow at those rates without making a loss.

.

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