Chapter 532 Run crisis (2)

  On September 14, when this open letter issued jointly by the Financial Supervisory Authority, the Bank of England and the Ministry of Finance was released to the public, the entire market was completely shocked. What people didn't expect was that such a behemoth as Northern Rock Bank fell into a situation of liquidity shortage without knowing it. Although the main purpose of the open letter is that the three powerful institutions send out signals to stabilize financial institutions, in the eyes of ordinary people, these are not enough to dispel their fears, and soon a storm of deposit withdrawals spread.

   The run has officially begun.

  In Birmingham, Manchester, London, and York, crowds began to gather at the gates of all Northern Rock Bank branches. Despite the anxiety in their hearts, these people still maintained order, waiting in line at the door of the bank, waving things like passbooks in their hands, and preparing to withdraw their deposits here after the doors opened for business.

  The gathered crowd quickly attracted the attention of passers-by, and those who neglected to read the news got this news from the news on the streets. And the journalists were even more unwilling, and almost immediately sent people to the nearest branch of Northern Rock Bank to report on the run on here.

“…this is the Northern Rock branch in North London, breaking news, following an open letter to the market from the Bank of England and the Treasury, among others, and there’s a lot of public outcry about Northern Rock’s finances Worried, they are preparing to withdraw their deposits here. Next, let's interview the people who lined up..."

  The good-looking hostess directed the camera to move closer to the team. She chose a middle-aged man in a trench coat. This man was handsome and well-dressed, and he liked the hostess very much. It's just that his brows were tightly furrowed at this time, and his face was sad, which made people look a little distressed.

   "Hi sir, I'm Sassan, the host of the BBC. May I ask what happened here, and what are you doing here in line?"

The hostess Tingting walked up to the middle-aged man gracefully, and handed the microphone to him. Before the delicate body reached the man, the tangy fragrance had arrived first, which lifted the man's spirit immediately, and his face Immediately, the tense mood on the Internet relaxed a lot.

After taking the microphone, the man smiled at the hostess like a gentleman, and then said in an orderly manner: "I'm Ke Luoqi, I work at Barclays Capital, and I heard that there is a problem with the operation of Northern Rock Bank, so I came here to have a look. Withdraw the deposit in my account."

   "Barclays Capital? It seems that you are a person in the industry. What do you think of the situation of Northern Rock Bank?"

Upon hearing the other party's introduction, Sassan's eyes lit up immediately, and she couldn't care less about the director's prompt in the earphones. Questions came out of her mouth like a cannonball, "It is said that Northern Rock Bank may go bankrupt, do you agree? Is this statement? Also, what do you think of the open letter issued by the Bank of England? Also, I want to know what you professionals think of the sudden outbreak of the crisis at Northern Rock Bank?"

After taking two steps towards the team, Kolocci touched the tip of his nose, and replied with some embarrassment: "Miss Sassan, I'm just a bond trader, not an economist. I'm really sorry for your questions. It is difficult to answer. However, this news broke out very suddenly, so I can't help but feel a little flustered, and I am ready to withdraw the deposit here as soon as possible. As for where the situation will eventually develop, I personally cannot answer it. You should ask Northern Rock Bank this question executives."

   After hesitating for a moment, the middle-aged man named Ke Luoqi turned his head to the camera and said solemnly: "If you have deposits in Northern Rock Bank, I might as well suggest that you withdraw them immediately, yes, it is now."

  The solemnity of these words made Sassan very satisfied. The sensation she was after was in this man's speech. Of course, this Coloch is not a trustee. It is precisely because he is a bond trader that he is fully aware of the seriousness of the situation, so he rushed here immediately. Although he is a VIP customer of the bank, there is no difference between ordinary customers and VIP customers at this time, so he can only queue up among ordinary customers.

  Northern Rock Bank also has an online transfer service, and Koloci has thought of this. However, when he opened the transfer system of Northern Rock Bank, he was shocked to find that the server was extremely slow, which was naturally caused by too many logged-in users and the server was under too much pressure. In this case, the server may crash at any time, and if another error occurs, it will be even worse, so he has to go to the bank to transfer the property in person.

   During the interview in just a few minutes, the camera has captured several deposit vehicles speeding into the bank. It is obvious that these deposit vehicles are transporting cash. After asking a few more questions, Keluoqi had already shut up and said no more. The hostess Sassan shook her head in disappointment, thanked Keluoqi, and immediately interviewed several people who were waiting in line Only then did he return the screen to the host in the studio with satisfaction.

At this time, the broadcast plan of the BBC Financial Channel has been disrupted. When Sassan was interviewing in the field, Jimmy Saville, the host of the director room, was conducting urgent consultations with his team, a report on the banking and financial industries The list was quickly listed, and the staff called in the order of the list to ask if the other party would be willing to accept the BBC's telephone interview, and soon someone gave an affirmative answer.

When the screen switched to the director's room, Jimmy's team was ready. After briefly summarizing the scenes fed back from the scene, he connected a call from an executive in the banking industry who did not want to be named. , and talked to him about Northern Rock Bank.

"...This matter was very hasty, and our peers were shocked by the haste. It has to be said that Northern Rock Bank grew too fast in the housing loan market in the first half of the year, and it is already the leader in the entire industry. And because the United States The housing mortgage loan crisis in China has made the whole market pay attention to the danger of this aspect of loans, and Northern Rock Bank is deeply involved in it, so the problem is very serious for them. In addition, the liquidity of Northern Rock Bank is generally composed of short-term This is an aggressive bank. Although this method can make up for the lack of reserves at certain times, when the market is tense, there is no liquidity to borrow, so they have to go to the central bank for lending. I think this should be the reason why the central bank, the Ministry of Finance and other departments jointly issued an announcement today..."

"So what do you think will happen to the future of Northern Rock Bank?" Jimmy tilted his head slightly, and listened to the lecture seriously. At the bottom of the TV screen, the situation of the branches of Northern Rock Bank from all over the world was still being broadcast live. It has been opened, and the depositors waiting outside are entering the bank in an orderly manner, and Jimmy promptly asked the questions in most people's minds, "Or it may be more appropriate for me to ask, as an industry insider, do you think Beiyan Are the banks ultimately at risk of failing?"

This time the other party did not respond immediately. After pondering for a long time, he said leisurely: "This question is difficult to answer. It mainly depends on the market's confidence in Northern Rock Bank and the support of the management. It is time to reverse the panic of depositors, and I believe that the crisis of Northern Rock Bank will naturally be resolved. The best situation to reverse this unfavorable situation is to have enough cash to meet the withdrawal needs of depositors, and now Northern Rock Bank may be in short supply. It is cash, which depends on whether the management is determined to maintain the status of the bank. Therefore, we still have to carefully observe the future direction, and it is too early to draw conclusions. Of course, I suggest that even depositors If you lose part of the interest, you must withdraw your deposit as soon as possible, because no one can tell what will happen in the future. You must know that although the deposit insurance system has been implemented, if a large-scale run occurs, even the insurance company may I can't take such a blow."

"Also, I also heard that Northern Rock traders are scouting around the world. I think they are thinking about how they can save themselves if the management doesn't do it. Maybe they are selling or mortgage assets , in order to raise the required cash, and at this time, the other party will definitely lower the price aggressively, so a series of chain reactions may happen soon.”

  Finally, the anonymous person said with some emotion, his tone was full of depression. This may be out of pity for his peers, but is it not out of emotion over the run-on trend? You know, there has been no run on the British mainland for a full hundred years.

The so-called deposit insurance system refers to the establishment of an insurance institution by gathering all kinds of depository financial institutions that meet the conditions. Each depository institution, as an insured person, pays insurance premiums to it according to a certain deposit ratio, establishes a deposit insurance reserve, and acts as a member institution. In the event of a business crisis or bankruptcy, the deposit insurance institution provides financial relief or directly pays part or all of the deposit to depositors, thereby protecting the interests of depositors, maintaining bank credit, and stabilizing the financial order.

In this system, the risk of deposits is borne by the insurance institution, and according to the proportion of the deposit amount, the depositor with the lower amount can get the higher insurance premium, and the depositor with less than 2,000 pounds can get the full amount when the bank goes bankrupt , while depositors with between £2,000 and £30,000 can only get 90%, and so on for others.

After Jimmy thanked the anonymous person for his analysis, he briefly described the bank runs that were taking place in various branches of Northern Rock Bank, and then called the second person, a financial analyst named Condra. division.

"What is certain is that something like this has happened, and the market's expectations for Northern Rock Bank will have a great reversal. Before we all thought it was a financial institution with strong profitability and rapid growth, although because of housing loans , so that their credit rating was lowered, but I still gave it a 'hold' evaluation. But now it seems that the company's operation has indeed experienced a major crisis, which is beyond the market's imagination. I can't give you specific figures , but what I can be sure of is that the stock of Northern Rock Bank will definitely drop sharply in the market today, as for where it is expected, no one knows.”

"The decline in the stock price may further put pressure on the cash flow of Northern Rock Bank. This is a cycle. If they cannot solve this problem in the short term, they are very likely to be acquired by others, and more seriously, they will go bankrupt. Liquidation. Therefore, the management of Northern Rock Bank must dispel the doubts of everyone, including market investors and ordinary depositors, as soon as possible, otherwise there is only a dead end."

Just when Condela was talking, the market had already opened, and the stock of Northern Rock Bank pulled out a long red line after the market opened, directly fell by 10%, and continued to fall, which seemed to be verifying what he said the truth of the words.

   Thank you book friends for the useless person who roared, happy Luoba for voting monthly! Thank you book friends for my money, Mr. Dong for your reward for this book! I am very happy to see monthly tickets and rewards every day. Although there are many things that delay the normal conception, the author will continue to insist on it, and work hard for a better tomorrow of this book!

  

  

  (end of this chapter)