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Northern Rock Bank

Northern Rock

Relief as Northern Rock shares up

Shares in Northern Rock rise after the government guarantees to protect savers' deposits.
Ref. https://news.bbc.co.uk/1/hi/business/7000035.stm

Bank Rock Northern

I feel really sorry for this building society. They were only trying to be fair to their investors by being so honest and saying that they were receiving help from the bank of England. Unfortunately for them, their honesty backfired, and they ended up with their investors 3 days on the run, queueing for hours to retrieve their money and close down accounts. I can see it from both sides, especially if you've got savings you'd be worried that they'd disappear, but by everyone rushing in, it just made the matter worse.
I'm glad they've got some help at last to stabilize the situation!

Northern Rock Bank History & Civil Business Politics

Actually, I was wondering if you got caught in this personally DianceC? Plus, isn't there some kind of depositor's insurance in the UK that would prevent the loss of savings?

Bank Rock Northern

I didn't personally get caught in this, but it did make me wonder how this bank got into this state (as it is one of the more reputable ones), and how things would stand if more banks faced ruin like this.
I don't think there is any type of insurance regarding banks in the UK, but I could be wrong.
My ex bosses parents were major shareholders in Lloyds that went bankrupt, and they lost millions of pounds in it as they were held accountable, and lost not only their wealth but their home etc, it affected even the small share holder very badly also.
Unless there have been changes made to the law since then that I don't know about.

Bank Rock Northern

They Run!

The chief executive and directors of Northern Rock resign in the wake of the financial troubles at the bank.
Ref. BBC

Northern Rock Bank

Wouldn't it be nice that if every time your business went through the government could show up and bail you out?

Northern Rock Bank

Rock shareholders begin legal bid

Northern Rock shareholders are launching a court challenge over compensation they are due to receive.
Ref. https://news.bbc.co.uk/1/hi/business/7389304.stm

Northern Rock Bank Politics Business Civil & History

It is going to be interesting on how this plays out. Investing is a risk and you should not be awarded compensation when your investment dies