Wednesday, September 19, 2007

The panic and the calm...

Northern Rock, the 5th largest bank in UK hogs the financial headlines these days. A profit warning led to rumours that the bank may be insolvent. Needless to say, some people decided that it's safer to have their money under their pillows than in the bank's coffers.

Immediately after the announcement, panicked customers lined the streets outside branches all over UK to withdraw their money. Bank of England stepped in to guarranty all the savings in an attempt to calm the people. Come to think of it, Northern Rock offers one of the highest rates in town and now all savings are guarranty by the largest financial body in the country (Bank of England). Where else is a safer place to park your money?

Apparently, some customers realized that as well and began to redeposit their money back in. Those who expected themselves to be welcome with open arms are sadly mistaken though.... they are told by the bank staff to join the queue.

Queing to withdraw your money and queing to deposit your money. Hilarious.

Oh.. there was this guy who took out 10,000 pounds from his Northen Rock account and bought Northern Rock shares when it plunged. Sold it the moment it recovered and put in 12,000 pounds back to his Northern Rock account.

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