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02/10/2008
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Nationalised financial institution Northern Rock has withdrawn a number of savings deals after 'herds' of customers queued up to deposit money.
The bank, which was nationalised in February, was forced to take action after customers rushed to put savings in what is seen as one of the "safest places", as the Government promised to guarantee all its deposits.
Northern Rock is one of the few financial institutions that has a "100% guarantee" for the safety of customers' money, as it is now backed by the Exchequer.
As part of the nationalisation deal, it is forced to cap its market share of UK retail deposit balances at 1.5%. The deal was made so it could not take advantage of its temporary Government backing.
With the recent nationalisation of its rival Bradford & Bingley, as well as the Government-brokered takeover of HBOS, Northern Rock revealed it led to a "sizeable" influx of deposits.
The bank announced: "Recent turbulence in financial markets has led to a sizeable inflow of retail deposits, particularly in recent days, and Northern Rock is therefore taking further action to moderate its product range and product pricing, to upholds its competitive commitments."
Northern Rock is withdrawing four products to new customers, including its fixed-rate access bond and its online e-saver product. It has also amended its product pricing to uphold its competitive commitments.
The move comes as the Irish government confirmed legislation to ensure the safety of 100% of savings at six institutions. This has led to a major rush of money into Irish banks.
See: Gov's €400 bn Plan To Be Written Into Law
(JM)
The bank, which was nationalised in February, was forced to take action after customers rushed to put savings in what is seen as one of the "safest places", as the Government promised to guarantee all its deposits.
Northern Rock is one of the few financial institutions that has a "100% guarantee" for the safety of customers' money, as it is now backed by the Exchequer.
As part of the nationalisation deal, it is forced to cap its market share of UK retail deposit balances at 1.5%. The deal was made so it could not take advantage of its temporary Government backing.
With the recent nationalisation of its rival Bradford & Bingley, as well as the Government-brokered takeover of HBOS, Northern Rock revealed it led to a "sizeable" influx of deposits.
The bank announced: "Recent turbulence in financial markets has led to a sizeable inflow of retail deposits, particularly in recent days, and Northern Rock is therefore taking further action to moderate its product range and product pricing, to upholds its competitive commitments."
Northern Rock is withdrawing four products to new customers, including its fixed-rate access bond and its online e-saver product. It has also amended its product pricing to uphold its competitive commitments.
The move comes as the Irish government confirmed legislation to ensure the safety of 100% of savings at six institutions. This has led to a major rush of money into Irish banks.
See: Gov's €400 bn Plan To Be Written Into Law
(JM)
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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'.
24 February 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.
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.
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.
18 May 2012
Northern Rock Rescue "Could Cost Taxpayer £2bn"
The National Audit Office (NAO) has estimated that taxpayers could lose almost £2bn once the assets of collapsed bank Northern Rock are wound down. The public spending watchdog also said that taxpayers lost about £480m on the sale of Northern Rock PLC last year.
Northern Rock Rescue "Could Cost Taxpayer £2bn"
The National Audit Office (NAO) has estimated that taxpayers could lose almost £2bn once the assets of collapsed bank Northern Rock are wound down. The public spending watchdog also said that taxpayers lost about £480m on the sale of Northern Rock PLC last year.
13 February 2009
Northern Rock Shareholders Lose High Court Bid
Former Northern Rock shareholders have today failed in their legal challenge to the Government's plan to compensate them.
Northern Rock Shareholders Lose High Court Bid
Former Northern Rock shareholders have today failed in their legal challenge to the Government's plan to compensate them.
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Northern Ireland WeatherThis Evening and Tonight:Continuing cloudy through the evening with further outbreaks of rain, the rain turning lighter and patchier from the south as the night progresses. Winds remain light. Minimum temperature 8 °C.
