Chancellor Nationalises Northern Rock
You can’t have failed to have noticed the news in the media over the past months on the financial crisis that is being experienced by Northern Rock at the moment. Britain’s eighth largest lender has been in serious financial difficulties and savers have been panicking. Many customers have their life savings in Northern Rock savings products and once they realised that the bank was in trouble they rushed to withdraw funds. Most recent estimates are now saying that as much as ten billion pounds was withdrawn from the bank as customers rushed to get their money out.
One thing that savers can find confidence in however is that the Chancellor would step in to guarantee savings. This is significant news both for Northern Rock customers and also customers of other banks. Whether you have savings in a bank, or you have a home loan, it is vital that as a customer you have confidence in your bank.
Well for all loan holders and savers there has been a big reason to have a little confidence in your bank. The Chancellor stepped in yesterday to announce the nationalisation of Northern Rock. So if you were finding yourself losing confidence in the British financial system during the current crisis, then maybe think again. While all savings in the UK are partially guaranteed by the government at all times, the chancellor has now shown that the government is unlikely to let customers lose money in the banking system.