£1.5 billion withdrawn from Northern Rock : Credit Card Guide

£1.5 billion withdrawn from Northern Rock

Following the recent reports relating to Northern Rock having to ask the Bank of England for a loan of £30 billion customers have been flocking to their local branches in order to withdraw their savings amidst fears that the bank could be going under.

Despite assurances from both the bank and from other industry officials that Northern Rock is a 'sound financial institution' and that it remains solvent customers have been queuing up to make withdrawals for fear of losing their money in the event that the bank goes bust.

According to the most recent report around £1.5 billion has been withdrawn from the bank by savers since news about the loan broke out, and staff at the bank's branches have been inundated as they try to cope with the increased custom. Police have even been called in to one branch to cope with 'ugly scenes', and there is likely to be more turmoil in the coming week as more customer flock to withdraw their savings.

One Northern Rock spokesman stated: 'I am sorry, because the level of service our customers are getting is much slower because we are extremely busy. I would ask customers for their patience. Our staff in branches and manning the phones will give customers their money back if they want it. Several branches stayed open until 10.30pm last night, and many will stay open tonight, too, if necessary. If customers still want to withdraw money when we reopen on Monday, they can do. But I can assure them that this business is solvent.'

As a result of the damage caused by the reports and the level of withdrawals some experts are now predicting that the bank – which is currently the fifth largest mortgage lender in the UK – will not last another year.

Tom Smith
20th September 2007

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