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| Version 2 | Version 3 |
|---|---|
| Bank 'gives Rock further bailout' | Bank 'gives Rock further bailout' |
| (about 5 hours later) | |
| Shares in Northern Rock have fallen further, down 8%, on claims that the troubled lender has borrowed more money from the Bank of England. | |
| New Star economist Simon Ward says he has calculated from the Bank's latest weekly accounts that Northern Rock has been given an additional £5bn. | New Star economist Simon Ward says he has calculated from the Bank's latest weekly accounts that Northern Rock has been given an additional £5bn. |
| This would take Northern Rock's total loans from the Bank to almost £8bn. | This would take Northern Rock's total loans from the Bank to almost £8bn. |
| Both the Bank of England and Northern Rock have declined to comment on Mr Ward's report. | Both the Bank of England and Northern Rock have declined to comment on Mr Ward's report. |
| 'Other assets' | 'Other assets' |
| The economist said it was his opinion that the £5bn figure was included in the bank's latest accounts under the headline "other assets", although Northern Rock is not named. | The economist said it was his opinion that the £5bn figure was included in the bank's latest accounts under the headline "other assets", although Northern Rock is not named. |
| The sharp fall in confidence in September is the first clear evidence that the Northern Rock crisis has significantly affected the consumer Howard Archer at Global Insight | The sharp fall in confidence in September is the first clear evidence that the Northern Rock crisis has significantly affected the consumer Howard Archer at Global Insight |
| "It is possible that other undisclosed activities have contributed to the increase [in the Bank's assets], but the latest figures will fuel speculation that the Bank has been forced to extend massive support to the troubled mortgage lender," he said. | "It is possible that other undisclosed activities have contributed to the increase [in the Bank's assets], but the latest figures will fuel speculation that the Bank has been forced to extend massive support to the troubled mortgage lender," he said. |
| Northern Rock got itself into financial difficulty over the past month because unlike most UK banks, it raises the majority of its funds via the global wholesale credit market. | Northern Rock got itself into financial difficulty over the past month because unlike most UK banks, it raises the majority of its funds via the global wholesale credit market. |
| This market has dried up as a result of the crisis in the US sub-prime mortgage market, which has made global banks and other investors a lot more unwilling to lend to each other. | This market has dried up as a result of the crisis in the US sub-prime mortgage market, which has made global banks and other investors a lot more unwilling to lend to each other. |
| Share price fall | Share price fall |
| Northern Rock's shares were down 8% to 177.5p in late Friday trading in London. | |
| Shares in the firm have lost nearly 75% of their value since it was first revealed on 13 September that it needed emergency funds from the Bank of England. | Shares in the firm have lost nearly 75% of their value since it was first revealed on 13 September that it needed emergency funds from the Bank of England. |
| When the news of the emergency funding facility was made public it led to long queues of customers trying to withdraw their funds from its branches. | When the news of the emergency funding facility was made public it led to long queues of customers trying to withdraw their funds from its branches. |
| The government intervened on 17 September, when Chancellor Alistair Darling said it would guarantee all deposits held by Northern Rock. | The government intervened on 17 September, when Chancellor Alistair Darling said it would guarantee all deposits held by Northern Rock. |
| 'Losing momentum' | 'Losing momentum' |
| Meanwhile, the crisis at Northern Rock has affected UK consumer morale, a survey suggested on Friday. | Meanwhile, the crisis at Northern Rock has affected UK consumer morale, a survey suggested on Friday. |
| Research group GFK NOP's consumer confidence measure fell to -7 in September, from August's -4 reading, worse than market expectations of a decline to -6. | Research group GFK NOP's consumer confidence measure fell to -7 in September, from August's -4 reading, worse than market expectations of a decline to -6. |
| When only interviews made after the Northern Rock crisis was taken into account, the figure was -9, the lowest since December 2005. | When only interviews made after the Northern Rock crisis was taken into account, the figure was -9, the lowest since December 2005. |
| "The sharp fall in confidence in September is the first clear evidence that the Northern Rock crisis has significantly affected the consumer," said economist Howard Archer at Global Insight. | "The sharp fall in confidence in September is the first clear evidence that the Northern Rock crisis has significantly affected the consumer," said economist Howard Archer at Global Insight. |
| "We suspect consumer spending will lose significant momentum over the coming months." | "We suspect consumer spending will lose significant momentum over the coming months." |