Northern Rock deposits to be guaranteed
LONDON (Reuters) - The government will guarantee all existing deposits at embattled mortgage bank Northern Rock, Chancellor Alistair Darling said on Monday.
"I can announce today that following the discussions with the Governor (of the Bank of England) and the Chairman of the FSA, should it be necessary, we, with the Bank of England would put in place arrangements that would guarantee all the existing deposits in Northern Rock during the current instability," he said in a statement.
He said he had taken the decision "in the current market circumstances and because of the importance I place on maintaining a stable banking system and public confidence in it."
Clearly going for the northern Labour vote. Will the Chancellor do the same for the Alliance and Leicester?
LONDON (Reuters) - Alliance & Leicester said on Monday it was successfully funding itself and had not sought any assistance from the Bank of England, after its shares plunged over 30 percent on fears it could face some of the problems that have battered rival mortgage lender Northern Rock .
A&L, the country's seventh-largest bank, saw its shares tumble in the last minutes of trade to close down 31.3 percent at 600 pence, its lowest level in almost 7 years.