Northern Rock tapped the Bank of England for a further £3bn this month, taking the total amount of emergency funding it has drawn to £16bn, The Telegraph reports.
Analysts believe the troubled lender will access at least another £5bn before the end of the year after the Bank revealed that Lloyds TSB had last month demanded £30bn to cover Northern Rock's obligations as a condition of a rescue takeover.
Simon Ward, of New Star Asset Management, said: "The weekly increase of £3bn is up from £2.3bn and £2.9bn in the prior two weeks, indicating that Northern Rock's funding problems remain acute."
Bankers believe customers have continued to withdraw savings since pulling out £3bn in just three days in the first run on a British bank in 150 years. It has now emerged the UK's 59 building societies were major beneficiaries of Northern Rock's crisis.
A DECADE-LONG push into investment banking by one of America's biggest retail banks came to an abrupt and painful end yesterday, as Bank of America said the credit crisis had destroyed its Wall Street profits, according to The Independent.
Ken Lewis, the ambitious chief executive who masterminded the bank's expansion into exotic new businesses, bluntly ruled out any further acquisitions in its investment banking division. "I've had all of the fun I can stand in investment banking at the moment," he told analysts.
And he promised a review of whether Bank of America would stay in the investment banking business at all, refusing to say that he would "stay the course". At the very least, there will be big cuts, he signalled.
OIL PRICES BROKE through $90 a barrel for the first time early on Friday, fuelled by tensions in Turkey and a falling dollar, The Times reports.
US light crude rose to $90.02 in New York late on Thursday, before pulling back to $89.54 in early trading in the Far East.
London's Brent crude had fallen back 12 cents to $84.48 from its overnight close of $84.60.
The weak dollar has made oil a more attractive investment leading to a 13 per cent surge in oil prices in less than a fortnight.
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