Menu
14/09/2007
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. However, it is understood that Northern Rock has not yet taken the money and, in a statement issued by the company, it stressed that the Financial Services Authority considered it to be solvent.
A statement issued by Northern Rock said it has "agreed with the Bank of England that it can raise such amounts of liquidity as may be necessary by either borrowing on a secured basis from the Bank of England or entering into repurchase facilities with the Bank of England.
"Such repurchase facilities would include securities that have prime residential mortgage assets as underlying collateral.
"On the assumption that the current conditions remain until the end of 2007, there will clearly be an impact on Northern Rock's 2007 asset growth and, therefore, on profits."
Northern Rock Chief Executive Adam Applegarth urged customers to remain calm and said that it was "business as normal" for the company.
However, it has been reported that queues have been forming outside Northern Rock branches with customers wanting to withdraw their money.
Northern Rock holds deposits of £24 billion from 1.5 million savers and lends to 800,000 homeowners.
(KMcA)
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. However, it is understood that Northern Rock has not yet taken the money and, in a statement issued by the company, it stressed that the Financial Services Authority considered it to be solvent.
A statement issued by Northern Rock said it has "agreed with the Bank of England that it can raise such amounts of liquidity as may be necessary by either borrowing on a secured basis from the Bank of England or entering into repurchase facilities with the Bank of England.
"Such repurchase facilities would include securities that have prime residential mortgage assets as underlying collateral.
"On the assumption that the current conditions remain until the end of 2007, there will clearly be an impact on Northern Rock's 2007 asset growth and, therefore, on profits."
Northern Rock Chief Executive Adam Applegarth urged customers to remain calm and said that it was "business as normal" for the company.
However, it has been reported that queues have been forming outside Northern Rock branches with customers wanting to withdraw their money.
Northern Rock holds deposits of £24 billion from 1.5 million savers and lends to 800,000 homeowners.
(KMcA)
Related UK National News Stories
Click here for the latest headlines.
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 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.
01 May 2008
Job Cuts Planned At Troubled Bank?
Troubled lender Northern Rock plans to axe 2,000 jobs within three years, it has been reported. The bank has been struggling since last year due to unsettling financial conditions sparked off by the global credit crunch. Long queues formed outside the bank last September as savers tried to withdraw their savings.
Job Cuts Planned At Troubled Bank?
Troubled lender Northern Rock plans to axe 2,000 jobs within three years, it has been reported. The bank has been struggling since last year due to unsettling financial conditions sparked off by the global credit crunch. Long queues formed outside the bank last September as savers tried to withdraw their savings.
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.
23 February 2009
Northern Rock To Begin Mortgage Lending Again
Nationalised bank Northern Rock is to make £14 billion available for new mortgages by 2011, it has been announced. The move follows Chancellor Alistair Darling's decision last month to reverse the wind-down of its loans, and is part of wider plans to restructure the group.
Northern Rock To Begin Mortgage Lending Again
Nationalised bank Northern Rock is to make £14 billion available for new mortgages by 2011, it has been announced. The move follows Chancellor Alistair Darling's decision last month to reverse the wind-down of its loans, and is part of wider plans to restructure the group.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
