An attempt to organise a takeover of Northern Rock was underway last night, according to The Times , as regulators, government and bank officials sought to rescue Britain's fifth largest mortgage lender before panic among its customers leaves it beyond rescue.
The Bank of England made clear the loan facility which it has given to Northern Rock – allowing it to continue to remain afloat despite a cash crunch that has left it short of funds – will remain available to any institution that buys the lender. The siege of Northern Rock’s branches by thousands of its 1.4 million customers nationwide was expected to continue this morning, The Times reports, despite new pleas for calm led by Alistair Darling, the Chancellor, and Sir Callum McCarthy, chairman of the FSA. Between £1.5bn and £2bn was pulled out of Northern Rock on Friday and Saturday af...
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