Comments on: Northern Rock nationalised http://ozrisk.net/2008/02/18/northern-rock-nationalised/ Risk Management in Australia Tue, 02 Dec 2008 02:15:24 +0000 http://wordpress.org/?v=MU hourly 1 By: André http://ozrisk.net/2008/02/18/northern-rock-nationalised/#comment-26115 André Tue, 19 Feb 2008 19:29:27 +0000 http://ozrisk.wordpress.com/?p=296#comment-26115 Hi Andrew, good point :) After reading many reports and seeing some great interview I accept that there would have been the possibility to save the money from the savers but still let Northern Rock go bankrupt or be saved from bankruptcy by a competitor... Anyway I am glad I found your blog there are some very interesting articles on there. Rgds Andre Hi Andrew,
good point :) After reading many reports and seeing some great interview I accept that there would have been the possibility to save the money from the savers but still let Northern Rock go bankrupt or be saved from bankruptcy by a competitor…
Anyway I am glad I found your blog there are some very interesting articles on there.
Rgds
Andre

]]> By: Andrew http://ozrisk.net/2008/02/18/northern-rock-nationalised/#comment-26109 Andrew Tue, 19 Feb 2008 03:32:17 +0000 http://ozrisk.wordpress.com/?p=296#comment-26109 Andre, I do believe it would have been better to let it go down. In the case of NR, the number of depositors was (comparatively) small and the government (and others) could have made it abundantly clear that this was an isolated case of a bank that did not manage its liquidity risk well. All the depositors would have eventually got their money back and much of the shareholders funds would have also been realised through an orderly process. I do not believe that people incapable of sorting out the good from the bad. This is now going to drag through the courts for years. Andre,
I do believe it would have been better to let it go down. In the case of NR, the number of depositors was (comparatively) small and the government (and others) could have made it abundantly clear that this was an isolated case of a bank that did not manage its liquidity risk well.
All the depositors would have eventually got their money back and much of the shareholders funds would have also been realised through an orderly process.
I do not believe that people incapable of sorting out the good from the bad.
This is now going to drag through the courts for years.

]]> By: Mark Hill http://ozrisk.net/2008/02/18/northern-rock-nationalised/#comment-26107 Mark Hill Mon, 18 Feb 2008 09:20:21 +0000 http://ozrisk.wordpress.com/?p=296#comment-26107 I thought that liquidity was considered a bigger risk than credit... I thought that liquidity was considered a bigger risk than credit…

]]> By: Andre http://ozrisk.net/2008/02/18/northern-rock-nationalised/#comment-26104 Andre Mon, 18 Feb 2008 08:22:40 +0000 http://ozrisk.wordpress.com/?p=296#comment-26104 Hi Andrew, If you write that the government should not have gotten involved what would have been the better outcome? Let the bank go bankrupt? I believe this could have led to one of the worst financial crisis since decades. Imagine all the savers going to their bank (no matter which bank) and taking out their money.... I bet there would have been many bank collapses.... Hi Andrew,

If you write that the government should not have gotten involved what would have been the better outcome? Let the bank go bankrupt?

I believe this could have led to one of the worst financial crisis since decades. Imagine all the savers going to their bank (no matter which bank) and taking out their money….

I bet there would have been many bank collapses….

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