Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (86302)	9/14/2007 9:30:15 AM
From: stan_hughes	Respond to of 110194

Customers Ignore Northern Rock's Plea Updated: 12:47, Friday September 14, 2007 Customers have been seen queuing at a number of branches to withdraw their money from the cash-strapped bank. One branch in Newcastle saw the queue stretch outside onto the street. Savers are concerned for their investments following the news that Northern Rock has called on emergency funding from the Bank of England to help it through the credit market crisis. "I'm not sure about this, even though they say it is going to be all right. If they are short of funds, what happens to our funds?" said one customer. Another customer, a pensioner, said she was withdrawing all her savings. Another woman, who was with her husband, admitted she was worried, adding: "I want to spend my money before someone else does." People in the queue burst out laughing when one staff member asked them: "Does anyone want to pay money in?" Northern Rock - the UK's fifth-largest mortgage lender - turned to the Bank of England as the "lender of last resort" after it ran into trouble raising cash from the commercial markets. It wants the cash so it can continue to lend it out to customers. Although it has not yet taken the money from the BoE, it has the facility to take it if required. The Newcastle-based company holds deposits of £24bn from 1.5 million savers and lends to 800,000 homeowners. There has been widespread volatility on the international markets amid fears that banks may have to write off large quantities of bad debt held in US mortgages. Shares in Northern Rock plummeted more than 25% at one stage after it confirmed it had applied to the BoE. The mortgage lender also admitted its profits for 2007 might be £150m lower than expected. news.sky.com