British Bank Crisis in family line 07With a statement much(prenominal) as, ?This evening queues were still stretching out of the door at branches of Union brandish across the country, with more than £2bn already interpreted out by anxious savers. The value of northerly Rock shares fell sharply again today?., or a statement like Union Rock is heavily dependent on the wholesale money markets for funding its mortgages, rather than deposits, many another(prenominal) people, like Patrick Collinson from Guardian Unlimited and marketing director at Seven Investment Management, signify some circumstances of Northern Rock. What are the triggers that raised a storm of many discussions on television, in cuttingspapers and forum about a bank that was organise in 1965 as a Building Society and reborn to a limited public company in October 1997? (Companyinfo Northern Rock, 2007) Nowadays the bank Northern Rock is UK´s one-fifth largest mortgages lender with different mortgage types (www.okoza.co.uk, 28.11.07).
The most important designer discussions were raised is the financial crisis in the U.S. sub-prime mortgage market. More ? myopic? people failed to payback their mortgages than the banks had given for. And so did Northern Rock. Northern Rock is not a traditional bank. The most telephone line they do is providing mortgages on the wholesale market (BBC News, Sunday, 16 September 2007).
They used to get the money solely from the deposits of their customers to fund newfangled lends. When they realized that money was not enough, they started to approach a new aggressive strategy - Northern Rock started to borrow its interchange from other banks. Its deposits were worth £22 billion compared with a loan book of £113 billion (www.wsws.org/articles, 2007). Those new strategies were successful until the entire patience faced the financial crisis. Furthermore that was not the only solution the Northern Rock crisis caused last months. The European...
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