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November 21, 2008 10:27:57 AM CST

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British Bank Rebounds as Panic Wears Off

Posted Sep 18, 07 12:38 PM CDT in World,  Business 

(Newser) – As the lines of people waiting to make withdrawals from Northern Rock bank dwindled today, the British lender’s stock rose, bringing with it other hard-hit British financials. Northern Rock's huge losses in the mortgage market sparked a sell-off, drawing emergency funds from the Bank of England. But the government's move yesterday to guarantee savings and provide emergency credit to any buyer halted the fire sale.

So massive were Northern Rock’s problems that every single share of it changed hands in just two days. Rumors, ultimately untrue, that Alliance & Leicester had also dipped into emergency funds drove its price from 639p down to 282p yesterday. Both have recovered some ground this morning, but Telegraph analysts don’t expect the sector to return to pre-crisis levels.

Source Daily Telegraph (UK)

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Customers queuing outside a branch of the British mortgage lender Northern Rock in York England , as savers across the country seek to remove their money from the crisis-hit bank, while an investor...   (Associated Press)
Customers wait outside a branch of British bank Northern Rock PLC in Croydon, south London, Friday, Sept. 14, 2007. The Bank of England said Friday it had approved emergency funding for Northern Rock...   (Associated Press)
An elderly customer, rests his head in his hand, as he waits in a queue outside a branch of the Northern Rock the British mortage lender in Harrow, London Monday Sept. 17, 2007. Shares of British mortgage...   (Associated Press)
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Great Britain • credit crisis • subprime mortgages • credit market • stocks • Bank of England • Northern Rock


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