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24/02/2010
Northern Rock Closer To Independence
Northern Rock has reached an "important milestone" in its return to independence, the UK Treasury said today.
According to the government, the bank has stepped closer to "commercial strength" with notice given for the end of the special guarantee on retail deposits.
The deposits will be lifted three months from today on close of business 24 May.
The guarantee for wholesale borrowings of Northern Rock plc, to the extent it relates to sums which are attributable to retail deposits made with Northern Rock (Guernsey) Limited, will also be lifted at the same time.
Fixed term deposits in existing accounts will be guaranteed to maturity.
Today’s announcement follows the restructuring of the bank on 1 January.
Financial Services Secretary to the Treasury, Paul Myners said: "The guarantee of retail deposits was a vital step that restored confidence in Northern Rock’s operations when its customers were worried about its soundness.
"Over the last two years, we have worked to get the bank back to financial health."
He said the Treasury had taken a number of important steps, most recently to divide the bank into a retail business that will be sold back to the private sector in due course, and an asset management company that will remain in Government ownership.
"Our goal is to see the taxpayer get a good return on its investment in the bank and for Northern Rock to focus on providing an excellent service to its customers," said the Secretary.
"Today’s announcement shows how far we have come. Depositors can have confidence in Northern Rock."
After the guarantee is lifted every Northern Rock retail customer will continue to have the first £50,000 of their total deposit protected by the Financial Services Compensation Scheme (FSCS), whether their deposit is fixed-term, non-fixed term or a combination of both.
This is the same level of protection that is provided for retail customers of all banks and building societies in the UK.
Throughout the financial crisis, not a single retail depositor with a UK bank has lost any of their savings, the Treasury has said.
(PR/GK)
According to the government, the bank has stepped closer to "commercial strength" with notice given for the end of the special guarantee on retail deposits.
The deposits will be lifted three months from today on close of business 24 May.
The guarantee for wholesale borrowings of Northern Rock plc, to the extent it relates to sums which are attributable to retail deposits made with Northern Rock (Guernsey) Limited, will also be lifted at the same time.
Fixed term deposits in existing accounts will be guaranteed to maturity.
Today’s announcement follows the restructuring of the bank on 1 January.
Financial Services Secretary to the Treasury, Paul Myners said: "The guarantee of retail deposits was a vital step that restored confidence in Northern Rock’s operations when its customers were worried about its soundness.
"Over the last two years, we have worked to get the bank back to financial health."
He said the Treasury had taken a number of important steps, most recently to divide the bank into a retail business that will be sold back to the private sector in due course, and an asset management company that will remain in Government ownership.
"Our goal is to see the taxpayer get a good return on its investment in the bank and for Northern Rock to focus on providing an excellent service to its customers," said the Secretary.
"Today’s announcement shows how far we have come. Depositors can have confidence in Northern Rock."
After the guarantee is lifted every Northern Rock retail customer will continue to have the first £50,000 of their total deposit protected by the Financial Services Compensation Scheme (FSCS), whether their deposit is fixed-term, non-fixed term or a combination of both.
This is the same level of protection that is provided for retail customers of all banks and building societies in the UK.
Throughout the financial crisis, not a single retail depositor with a UK bank has lost any of their savings, the Treasury has said.
(PR/GK)
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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'.
02 October 2008
Northern Rock Pulls Savings Deals As Deposits Rise
Nationalised financial institution Northern Rock has withdrawn a number of savings deals after 'herds' of customers queued up to deposit money.
Northern Rock Pulls Savings Deals As Deposits Rise
Nationalised financial institution Northern Rock has withdrawn a number of savings deals after 'herds' of customers queued up to deposit money.
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 November 2011
Northern Rock Sale 'Poor Judgement' – Labour
Labour's Shadow Minister for the Treasury has said the sale of Northern Rock on Thursday by the Government was a 'poor judgement'. Richard Branson's Virgin investment company announced it was to purchase the almost disastrous Northern Rock bank on Thursday, while it has since emerged the sale will be at a loss for the taxpayer.
Northern Rock Sale 'Poor Judgement' – Labour
Labour's Shadow Minister for the Treasury has said the sale of Northern Rock on Thursday by the Government was a 'poor judgement'. Richard Branson's Virgin investment company announced it was to purchase the almost disastrous Northern Rock bank on Thursday, while it has since emerged the sale will be at a loss for the taxpayer.
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Northern Ireland WeatherToday:A mostly cloudy start with scattered showers, the showers becoming more isolated and largely confined to the south this morning. Becoming brighter this afternoon, the best of any sunnier spells across northern counties. Northerly winds easing. Maximum temperature 12 °C.Tonight:A dry evening with late sunny spells and some long clear spells overnight. Becoming cloudier across the north towards dawn with a few showers possible. Touch of frost in south. Minimum temperature 0 °C.
