Menu
17/09/2007
Customers Continue To Withdraw Funds From Northern Rock
Worried Northern Rock customers are continuing to withdraw their savings from the beleaguered mortgage lender.
Around £2billion has been withdrawn from Northern Rock branches across the UK since Thursday, when the firm applied for emergency funding from the Bank of England.
The bank's branches are opening earlier and closing later in order to deal with the demand from customers.
Northern Rock turned to the BoE as the "lender of last resort" after it struggled to raise money to fund its lending from commercial markets. However, the firm has stressed that it has not yet taken any of the funds made available to it by the BoE and also said that the Financial Services Authority considered it to be solvent.
Chancellor Alistair Darling has appealed for Northern Rock customers to remain calm and stressed that people would be able to get their money from their accounts if they wished.
There have been reports that Lloyds TSB had made a bid for Northern Rock, but that the deal had fallen through. Some reports indicated that this was due to the difficulty of borrowing money at the minute, while others said that regulators and the Bank of England had blocked the bid.
Two others banks, rumoured to be HSBC and HBOS, are reported to be interested in acquiring Northern Rock.
Mr Darling said that the BoE's emergency loan would be transferred to any new owner if Northern Rock was sold and would be available for the length of its existing term. However, it is not known how long this term will be for.
(KMcA)
Around £2billion has been withdrawn from Northern Rock branches across the UK since Thursday, when the firm applied for emergency funding from the Bank of England.
The bank's branches are opening earlier and closing later in order to deal with the demand from customers.
Northern Rock turned to the BoE as the "lender of last resort" after it struggled to raise money to fund its lending from commercial markets. However, the firm has stressed that it has not yet taken any of the funds made available to it by the BoE and also said that the Financial Services Authority considered it to be solvent.
Chancellor Alistair Darling has appealed for Northern Rock customers to remain calm and stressed that people would be able to get their money from their accounts if they wished.
There have been reports that Lloyds TSB had made a bid for Northern Rock, but that the deal had fallen through. Some reports indicated that this was due to the difficulty of borrowing money at the minute, while others said that regulators and the Bank of England had blocked the bid.
Two others banks, rumoured to be HSBC and HBOS, are reported to be interested in acquiring Northern Rock.
Mr Darling said that the BoE's emergency loan would be transferred to any new owner if Northern Rock was sold and would be available for the length of its existing term. However, it is not known how long this term will be for.
(KMcA)
Related UK National News Stories
Click here for the latest headlines.
13 February 2009
Northern Rock Shareholders Lose High Court Bid
Former Northern Rock shareholders have today failed in their legal challenge to the Government's plan to compensate them.
Northern Rock Shareholders Lose High Court Bid
Former Northern Rock shareholders have today failed in their legal challenge to the Government's plan to compensate them.
03 August 2010
Northern Rock Steadfast In Recovery
The boss of a once beleaguered UK bank is "encouraged" by news that nationalised Northern Rock's - a so-called 'bad bank' - has returned to profit following heavy losses last year in the wake of a bail-out by the taxpayer in 2008. Chief Executive Gary Hoffman said the Northern Rock 'AM' results were 'encouraging'.
Northern Rock Steadfast In Recovery
The boss of a once beleaguered UK bank is "encouraged" by news that nationalised Northern Rock's - a so-called 'bad bank' - has returned to profit following heavy losses last year in the wake of a bail-out by the taxpayer in 2008. Chief Executive Gary Hoffman said the Northern Rock 'AM' results were 'encouraging'.
18 September 2007
Northern Rock Crisis Begins To Ease
The crisis over beleaguered bank Northern Rock appears to be calming down, as reports have indicated that queues of customers, anxious to withdraw their savings outside branches across the UK, have tailed off.
Northern Rock Crisis Begins To Ease
The crisis over beleaguered bank Northern Rock appears to be calming down, as reports have indicated that queues of customers, anxious to withdraw their savings outside branches across the UK, have tailed off.
18 December 2007
Northern Rock Gets Taxpayer Billions
The Government is bailing out troubled bank, Northern Rock, again. At the request of the lender, it has offered to cover any loss by financial institutions that provide money to Northern Rock so the bank can operate normal banking services.
Northern Rock Gets Taxpayer Billions
The Government is bailing out troubled bank, Northern Rock, again. At the request of the lender, it has offered to cover any loss by financial institutions that provide money to Northern Rock so the bank can operate normal banking services.
14 September 2007
Northern Rock Applies For BoE Funding
One of the UK's largest mortgage lenders, Northern Rock, has applied for emergency funding from the Bank of England. The mortgage lender turned to the BoE as the "lender of last resort" after it struggled to raise money to fund its lending from commercial markets.
Northern Rock Applies For BoE Funding
One of the UK's largest mortgage lenders, Northern Rock, has applied for emergency funding from the Bank of England. The mortgage lender turned to the BoE as the "lender of last resort" after it struggled to raise money to fund its lending from commercial markets.
-
Northern Ireland WeatherThis Evening and Tonight:It will be cloudy with a spell of heavy rain pushing south through late evening and the early hours, soon followed by some clear spells. Minimum temperature 6 °C.
