NRK - Northern Rock

2007-09-14 running out of money

Britain's 5th largest mortgage lender had to borrow from the Bank of England (lender of last resort) because other banks would not loan to it at reasonable rates. The share price dropped 30% in a day.

See articles Northern Rock shares plunge and Bank offers emergency support to Northern Rock .

People literally queued to withdraw money. There is something called a consumer compensation scheme but I am not sure how this works.

If Northern Rock has lend out money to a person for a mortgage, but it can only source funds at a higher rate, because other banks refuse to lend to it cheaply, then it will be losing money unless it can find a cheaper loan. The Bank of England is the source of the cheaper loan.

NRK Share Price 2007-09-14

NRK Share Price 2007-09-14

NRK Share Price for week ending 2007-09-14

NRK Share Price for week ending 2007-09-14