Crank up the presses, Print more [Money] There's a run on the bank!
Date: Friday, September 14 2007
Britain sees a bank run
Submitted by cpowell on Fri, 2007-09-14 15:55. Section: Daily Dispatches
Northern Rock Customers Queue for Cash
By Emma Thelwell
The Telegraph, London
Friday, September 14, 2007
The credit crisis spilled onto Britain's high streets today as worried Northern Rock customers queued up to withdraw their savings.
Their fears were prompted by the revelation this morning that Britain's fifth-biggest mortgage lender had to ask the Bank of England for emergency financial assistance.
Despite Northern Rock's assurances that there was no need for customers to panic, queues continued to build steadily at the London branches visited by the Daily Telegraph today.
For 65-year old Tony Looch, with savings of £135,000, the lender's calming words were not enough.
"I'm prepared to wait as long as it takes. I'm taking the lot out, if they'll let me have it," said Mr Looch, who was queuing outside the bank's Moorgate branch, in the heart of the Square Mile.
"I'm absolutely appalled that they should be so badly run and so badly regulated. I thought they were totally reliable and secure -- they're supposed to be regulated these companies."
Northern Rock shares had plunged more than 20 percent by early afternoon after the lender slashed its profit forecasts and admitted it was seeking help from the central bank.
Based in Newcastle, Northern Rock has 76 branches around the UK, has about 1.4 million savers, around 800,000 mortgage customers, and retail deposits of £24 billion.