#3063400, By bainbrge Northern Rock to be Nationalised

  • bainbrge 17 Feb 2008 18:56:59 1,687 posts
    Seen 9 months ago
    Registered 12 years ago
    mwtb wrote:
    urban wrote:
    it was only a busted bank because everybody sharply ran to the bank and took all the money out.

    it was a public problem and i'm happy you're all getting that problem thrust back in your arms.


    What makes you think that the withdrawal of deposits caused the problems rather than being a response to the underlying exposure to high-risk lending?

    I'd argue you're both wrong - it went wrong because they could no longer meet their funding requirements on the wholesale markets once they dried up.

    The next few days of results are going to be very interesting - B&B have already announced massive writedowns (stupid that they didn't write anything down sooner), A&L next week (although they've already announced the losses on SIVs etc.). I'm very interested to see HBOS.
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