Northern Rock forced to seek emergency funding
· Savers are assured that their money is secure
Friday September 14, 2007
The Bank of England was last night forced to hand emergency funding to one of Britain’s biggest mortgage providers – Northern Rock – as it became the first major financial institution in the UK to run into serious trouble as a result of the credit crisis that has caused turmoil in world financial markets.The Bank’s intervention was agreed with its governor, Mervyn King, the chancellor, Alistair Darling, and the Financial Services Authority sources close to the situation said last night. The news is likely to lead to big sell-offs in banking stocks when the stock market opens today.