Bank braced for more withdrawals

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Queues have continued to form outside Scottish branches of the troubled lender Northern Rock as it braces itself for more withdrawals.

Branches opened early on Monday as anxious customers looked to take money from their savings accounts.

About 100 people formed queues from about 0600 BST at branches in Edinburgh, Glasgow and Dundee.

It is estimated £2bn has been withdrawn since the firm applied for emergency funds from the Bank of England.

I am very worried, I know I should not be worried as we are being reassured, but it niggles away at you Margaret RichardsNorthern Rock customer

The Northern Rock crisis follows problems in the American housing sector which are having knock-on effects on foreign markets.

Both Alistair Darling, the chancellor, and the UK's main financial watchdog, the Financial Services Authority (FSA), intervened on Sunday in an attempt to reassure account holders that their money was safe.

Shares fell by more than 30% during early Monday morning trading on the London stock exchange, increasing pressure on the bank's management to sell the business.

But Mr Darling has called on customers to stay calm and is urging the banking sector to help restore public confidence.

At Aberdeen's Northern Rock branch in Union Street, there was not a queue outside and only a handful of customers inside on Monday.

Emergency money

Savings customer Margaret Richards, 74, told the BBC Scotland news website as she emerged: "I am very worried, I know I should not be worried as we are being reassured, but it niggles away at you.

"I have to write to the head office and tell them if I want to take my money out.

"I cannot get through on the phone or the website. It is a modest sum. I think I will just take it all out."

However, there was a huge queue outside the St Enoch branch in Glasgow and also in Dundee.

John Ower, 67, from Dundee, said: "I'm very worried. I would have left it because it's never used, but I saw a finance analyst on the BBC saying 'if it was my money, I'd take it out', so I jumped up and got here for 0800 BST."

Over 100 people queued outside Dundee's Northern Rock branch

Anne Scanlan, from Broughty Ferry, said: "I don't have a lot, only about £7,000, but it's all the savings I have.

"I'm only keeping the money for an emergency or something, but some people here, this is all they've got."

Peter Bing, 59, from Perth, said: "If you just look at the age profile, there are a lot of retired people.

"When you're retired, you want to make sure your future is secure because you can't earn any more money."

A Northern Rock spokeswoman confirmed reports of "busy branches" across the country.

She said: "We have had busy branches and call centres over the weekend and we have done our best to speak to everyone.

"Some of our branches were open until 2200 BST on Friday, we have also been opening earlier as well.

"We want to issue a strong message of apology for those customers who have had to wait. Our savings customers' deposits are safe.

"Our relationships with our customers are of paramount importance to us and there will be no changes to their accounts or the service we will provide.

"We are sorry for the queues but our operation is still in good shape."